India, one of the world’s largest military powers, spends a significant part of its national budget on defence. With rising security concerns, border tensions, and the need for modern technology, defence spending has always been a priority for the Indian government. In this blog post, we will look at how India’s defence budget has changed over the years, current trends, and what this means for the country.
Overview of the 2024-25 Defence Budget
In the Union Budget 2024-25, the Indian government allocated ₹6.21 lakh crore to defence, which is about 13% of the total Union Budget. Out of this:
₹1.72 lakh crore is for pensions to retired defence personnel.
₹2.79 lakh crore is for revenue expenditure (salaries, maintenance, etc.).
₹1.62 lakh crore is for capital expenditure (buying new weapons, aircraft, ships, etc.).
This shows that a big portion of the budget still goes to recurring expenses, but capital spending is increasing every year – which means India is trying to modernise its forces.
Trend Over the Last 5 Years
Here’s how India’s defence budget has grown in recent years:
As we can see, the total defence budget has steadily increased. Although the capital outlay has remained the same between 2023-24 and 2024-25, it is still significantly higher than what it was five years ago.
Why is Defence Spending Increasing?
Several reasons explain the rise in defence spending:
- Border Security Concerns: Ongoing tensions with China and Pakistan, especially in areas like Ladakh and Kashmir, demand a strong military presence and better infrastructure.
- Modernisation Needs: Many of India’s military platforms like fighter jets, tanks, and submarines are old and need replacement or upgrades.
- Atmanirbhar Bharat (Self-Reliant India): The government is pushing for more defence production within India. More budget is needed to support domestic companies and reduce imports.
- Rising Pension Bills: With more retired soldiers, the pension part of the defence budget keeps growing.
Focus on Indigenous Manufacturing
One of the most positive trends is the shift toward domestic manufacturing. The government has set aside 25% of the defence R&D budget for private industry, startups, and academia. India is now developing:
The Tejas fighter jet,
The Arjun battle tank,
Indigenous drones and surveillance equipment.
This not only strengthens national security but also boosts local industry and creates jobs.
Comparison with Other Countries
Let’s look at how India compares with other top defence spenders (as per SIPRI 2023 data):
USA: $877 billion
China: $292 billion
India: $81 billion (₹6.21 lakh crore approx.)
Russia: $86 billion
India ranks third globally in defence spending. However, in terms of defence spending as a percentage of GDP, India spends around 2%, which is moderate compared to some countries.
Challenges in Defence Budgeting
Despite higher spending, India still faces many challenges:
High Revenue Spending: A large part of the budget goes to salaries and pensions, leaving less for modernization.
Delayed Projects: Many defence projects face time and cost overruns.
Dependence on Imports: Although things are improving, India still imports many high-tech weapons and aircraft.
Future Outlook
Looking ahead, India will continue to increase its defence budget, especially for:
Modern weapons and smart technologies,
Cyber and space warfare,
Strengthening the Navy and Air Force.
The focus will also remain on public-private partnerships and reducing import dependency.
Conclusion
India’s defence budget reflects its commitment to national security, military modernization, and self-reliance. While the growing expenditure is a positive sign, proper planning and faster implementation are necessary to get real results. As India becomes more influential on the global stage, smart and efficient defence spending will play a key role in shaping its future.
