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
- 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.
- Revenue Expenditure:
- Allocation: 14.82%
- Purpose: Cover operational costs for sustenance and readiness of the armed forces.
- Pay and Allowances:
- Allocation: 30.68%
- Purpose: Salaries and benefits for military personnel.
- Defence Pensions:
- Allocation: 22.72%
- Purpose: Pensions for retired military personnel.
- Civil Organisations under the Ministry of Defence:
- Allocation: 4.11%
- Purpose: Funding for various civil organisations.
- Border Infrastructure:
- Allocation to BRO: ₹6,500 crore (30% increase from the previous year)
- Purpose: Improve border roads and connectivity.
- Innovations and Startups:
- iDEX Scheme Allocation: ₹518 crore
- Purpose: Encourage technological innovations and support startups, MSMEs, and innovators in the defence sector.
Strategic Priorities
- 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.
- 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.
- 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.
- 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
Sharing is caring!
Global Soil Conference 2024
Gati Shakti Vishvavidyalaya (GSV)
WhatsApp
