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India’s Defence Budget 2024, Highlights and Comparison with China

In a bid to strengthen its military capabilities and infrastructure, India has significantly increased its defence budget for the fiscal year 2024-25. The allocation of ₹6.21 lakh crore (approximately US $75 billion) marks a substantial rise from the previous year’s budget of ₹5.94 lakh crore. Check out details on India’s Defence Budget 2024 in this article.

India’s Defence Budget 2024

The Union Budget for the fiscal year 2024-25 has allocated a significant ₹6.21 lakh crore for India’s defence sector. This increase aims to bolster India’s military capabilities and infrastructure, reflecting the country’s strategic priorities in response to evolving global and regional security challenges.

Key Highlights of the Defence Budget 2024-25

  • Total Allocation: ₹6,21,940 crore
  • Increase from Previous Year: ₹27,000 crore (from ₹5.94 lakh crore)
  • Percentage of Total Union Budget: 12.9%
  • Capital Outlay: ₹1,72,000 crore

India’s Defence Budget 2024 Category-wise Amount

Category Amount(₹ Cr.) %of Total Defence Budget Purpose
Total Defence Budget 6,21,940 100% Total allocation for FY 2024-25
Capital Outlay 1,72,000 27.66% Procurement of advanced technology and equipment
Domestic Capital Procurement 1,05,518 16.96% Boost self-reliance in defence manufacturing
Revenue Expenditure 92,088 14.82% Sustenance and operational readiness
Pay and Allowances 1,90,521 30.66% Salaries and benefits for military personnel
Defence Pensions 1,41,000 22.70% Pensions for retired military personnel
Civil Organisations under Ministry of Defence 25,936 4.17% Funding for various civil organisations
Border Infrastructure (BRO) 6,500 1.04% Improve border roads and connectivity
Indian Coast Guard 7,651.80 1.23% Operational and infrastructure improvements
Ex-Servicemen Contributory Health Scheme (ECHS) 6,968 1.12% Health scheme for ex-servicemen
iDEX Scheme 518 0.08% Support for startups, MSMEs, and innovators

Breakdown by Major Areas of Allocation

Area Percentage of Total Defence Budget
Capital Acquisitions 27.66%
Revenue Expenditure 14.82%
Pay and Allowances 30.66%
Defence Pensions 22.70%
Civil Organisations 4.17%

Highlights and Key Priorities in Defence Budget 2024

  • Capital Outlay: ₹1,72,000 crore for modernizing armed forces with advanced technology and equipment.
  • Domestic Procurement: ₹1,05,518 crore to boost self-reliance in defence manufacturing.
  • Operational Readiness: ₹92,088 crore allocated for maintaining operational readiness.
  • Border Infrastructure: ₹6,500 crore for Border Roads Organisation (BRO), a 30% increase from the previous year.
  • Support for Ex-Servicemen: ₹6,968 crore for the Ex-Servicemen Contributory Health Scheme (ECHS).
  • Innovation and Startups: ₹518 crore was allocated for the iDEX scheme to encourage technological innovations and support startups, MSMEs, and innovators.
  • Indian Coast Guard: ₹7,651.80 crore allocated for operational and infrastructure improvements.

Detailed Breakdown Of Indian Defence Budget 2024

  1. Capital Acquisitions:
    • Allocation: 27.67% of the total defence budget
    • Purpose: Procure advanced technology, weapons, systems, and equipment to modernize the armed forces.
    • Domestic Capital Procurement: ₹1,05,518 crore
    • Impact: Enhances self-reliance under the ‘Atmanirbhar Bharat’ initiative.
  2. Revenue Expenditure:
    • Allocation: 14.82%
    • Purpose: Cover operational costs for sustenance and readiness of the armed forces.
  3. Pay and Allowances:
    • Allocation: 30.68%
    • Purpose: Salaries and benefits for military personnel.
  4. Defence Pensions:
    • Allocation: 22.72%
    • Purpose: Pensions for retired military personnel.
  5. Civil Organisations under the Ministry of Defence:
    • Allocation: 4.11%
    • Purpose: Funding for various civil organisations.
  6. Border Infrastructure:
    • Allocation to BRO: ₹6,500 crore (30% increase from the previous year)
    • Purpose: Improve border roads and connectivity.
  7. Innovations and Startups:
    • iDEX Scheme Allocation: ₹518 crore
    • Purpose: Encourage technological innovations and support startups, MSMEs, and innovators in the defence sector.

Strategic Priorities

  1. Enhancing Military Capabilities:
    • Significant capital outlay to acquire state-of-the-art technology, weapons, aircraft, ships, submarines, UAVs, and specialist vehicles.
    • Increased focus on operational readiness and infrastructure development.
  2. Promoting Self-Reliance:
    • Major portion of the budget earmarked for domestic procurement to reduce dependence on foreign suppliers.
    • Support for the ‘Atmanirbhar Bharat’ initiative to develop indigenous defence manufacturing capabilities.
  3. Improving Border Infrastructure:
    • Increased allocation for the Border Roads Organisation (BRO) to enhance connectivity and logistics in border areas.
    • Accelerated development of border infrastructure to address strategic and security concerns.
  4. Supporting Defence Startups and Innovations:
    • Funding for the Innovations for Defence Excellence (iDEX) scheme to promote innovative solutions from startups and MSMEs.
    • Focus on technological advancements to address future security challenges.

Defence Budget Comparison: India, China, and Pakistan (2024-25)

Total Defence Budgets

Country Defence Budget USD Equivalent Percentage Increase
India ₹6.21 lakh crore $75 billion 4.79% from FY 2023-24, 18.43% from FY 2022-23
China 1.66554 trillion yuan $231.36 billion 7.2% from the previous year
Pakistan ₹2,122 billion $7.8 billion 17.6% from the previous year

Key Allocations and Priorities

Category India China Pakistan
Capital Outlay ₹1,72,000 crore Not specified Not specified
Domestic Capital Procurement ₹1,05,518 crore Emphasis on domestic innovation Major acquisitions likely classified
Border Infrastructure ₹6,500 crore (BRO) Significant investments in infrastructure Not specified
Operational Readiness ₹92,088 crore High focus on modernisation Not specified
Defence Pensions ₹1,41,000 crore Not specified Not specified
Indian Coast Guard ₹7,651.80 crore Not specified Not specified
Innovation and Startups ₹518 crore (iDEX scheme) High investment in military technology Not specified

Comparative Analysis of Indian Defence Budget with China

India

  • Total Budget: ₹6.21 lakh crore ($75 billion), representing 12.9% of India’s total budget.
  • Growth: 4.79% increase from FY 2023-24 and 18.43% increase from FY 2022-23.
  • Focus Areas:
    • Significant capital outlay to enhance military capabilities.
    • Major push for domestic capital procurement to boost self-reliance.
    • Increased allocation for border infrastructure.
    • Emphasis on innovation and support for startups in defence.

China

  • Total Budget: 1.66554 trillion yuan ($231.36 billion).
  • Growth: 7.2% increase from the previous year.
  • Focus Areas:
    • Continued high investment in military modernization and advanced technology.
    • Significant infrastructure investments.
    • Emphasis on maintaining a competitive edge globally.

Pakistan

  • Total Budget: ₹2,122 billion ($7.8 billion).
  • Growth: 17.6% increase from the previous year.
  • Focus Areas:
    • Increased spending amid regional tensions.
    • Major military acquisitions and funding for nuclear programs believed to be classified.
    • Budget reflects an effort to maintain operational readiness and address immediate threats.

Significance of India’s Defence Budget 2024

  • Strengthening Military Capabilities: ₹1,72,000 crore for modern weapons, aircraft, ships, UAVs, and drones.
  • Domestic Procurement: ₹1,05,518 crore for self-reliance in defence manufacturing.
  • Enhanced Border Infrastructure: ₹6,500 crore for BRO, boosting border area infrastructure.
  • Operational Readiness: ₹92,088 crore for maintenance and training, a 48% increase from FY 2022-23.
  • Veteran Support: ₹1.41 lakh crore for defence pensions.
  • Innovation: ₹518 crore for the iDEX scheme, promoting technological solutions.
  • Maritime Security: ₹7,651.80 crore for the Indian Coast Guard.
  • Geopolitical Context: Balancing regional security with increased spending by China and Pakistan.

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India's Defence Budget 2024

Who is the Minister of defence in India 2024?

Defence Minister Rajnath Singh

Why are there two budgets?

India has two budgets this year because the incumbent government could not present a full Budget prior to the Lok Sabha polls.

What is the US defence budget?

Each year federal agencies receive funding from Congress, known as budgetary resources . In FY 2024, the Department of Defense (DOD) had $2.13 Trillion distributed among its 6 sub-components.

Which country has highest defence budget?

The United States has the highest military spending of any nation.

What is the army budget of India?

With a record allocation of over Rs 6.21 lakh crore for the Financial Year 2024-25, the defence sector receives considerable attention.

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