India’s defence budget has been from Rs 2.53 lakh crore in 2014 to Rs 6.22 lakh crore in 2024, the defence budget has surged by 2.5 times, positioning India among the world’s top military spenders. This exponential is due to India’s strategic focus on modernising its armed forces, investing in cutting-edge technologies, and self-reliance in defence manufacturing. As global geopolitical dynamics getting more complex, India’s defence spending tells a story of preparedness, on its security concern.
Defence Budget Growth
The numbers speak for themselves. In 2014, India’s defence budget stood at Rs 2.53 lakh crore. Fast forward to 2024, and the allocation has gone up to Rs 6.22 lakh crore, marking a 2.5-fold increase. This upward trend is a strategy to bolster India’s defence capabilities in the face of rising regional and global challenges.
The fiscal year 2024-25 alone saw a significant hike, with the defence budget growing by 7.1% compared to the previous year. Excluding pensions, the increase was even more pronounced at 8.6%. This consistent rise reflects the government’s commitment to ensuring that the armed forces are well-equipped to tackle emerging threats and maintain a strategic edge.
Capital Expenditure
One of the most notable aspects of India’s defence budget is the emphasis on capital expenditure, which accounts for 34% of the total allocation in FY 2024-25. At Rs 1.72 lakh crore, this segment has seen a robust growth of approximately 15% over the previous year. Capital expenditure is critical for the modernisation of the armed forces, enabling the acquisition of advanced weaponry, state-of-the-art equipment, and next-generation technologies. However, experts argue that even this allocation may not be sufficient given the rapidly changing global security landscape. With adversaries enhancing their military capabilities, India must continue to ramp up its capital spending to bridge critical gaps and stay ahead.
Self-Reliance: Aatmanirbharta in Defence
India’s defence strategy over the last decade has been the push for self-reliance, or “Aatmanirbharta”. The government has made concerted efforts to reduce dependency on foreign imports and boost domestic defence manufacturing. In the last financial year, 75% of the modernisation budget—amounting to Rs 1,05,518.43 crore—was earmarked for procurement from domestic industries. This shift towards indigenisation is not just about economic prudence; it’s a strategic imperative. By fostering a defence industrial base, India aims to enhance its operational autonomy, reduce vulnerabilities, supports innovation and job creation. Initiatives like the Defence Production and Export Promotion Policy (DPEPP) and the promotion of defence corridors are steps in the right direction. While India has made significant strides in defence modernisation, the absence of critical technologies remains a pressing concern. The current allocation for research and development (R&D) stands at approximately Rs 13,200 crore—a figure that many believe is inadequate.
Investing in R&D is not just about developing new weapons systems; it’s about fostering innovation, nurturing talent, and building a knowledge-driven defence ecosystem. Whether it’s artificial intelligence, cyber warfare, or space-based technologies, the future of defence lies in innovation, and India must position itself at the forefront of this revolution.
India’s defence budget is more than just a financial statement; it’s a reflection of the nation’s strategic priorities and its vision for the future. In a world where geopolitical tensions are on the rise, military is not just a luxury—it’s a necessity.
Moreover, the focus on self-reliance and indigenisation has far-reaching implications, reducing dependency on foreign suppliers; it also creates opportunities for economic growth & development, and driving innovation and creating high-skilled jobs.
As India’s defence budget continues to grow, it’s clear that the nation is taking its security and sovereignty seriously. Its India which is investing in its future, ensuring that its armed forces are equipped to face any threat, and marking itself as a global power.
