Defence Budget of India in 2025 - A Detailed Analysis

Defence Budget of India

The Defence Budget of India plays a crucial role in shaping the country’s military capabilities and strategic strength. As one of the world’s largest armed forces, India allocates a significant portion of its annual budget to defence expenditures, ensuring national security, modernizing equipment, and maintaining operational readiness.

Understanding the Defence Budget of India

The defence budget is an annual financial allocation made by the Indian government to the Ministry of Defence. It covers expenses related to the Army, Navy, Air Force, and other defence organizations. This budget is critical for maintaining national security, procuring advanced weapons, and strengthening border protection.

Defence Budget 2024-25: Key Highlights

Each year, the Government of India announces its defence budget as part of the Union Budget. For the fiscal year 2024-25, some significant highlights include:

  • Total Defence Budget: ₹ 6.81 lakh crore 
  • Percentage of GDP Allocation: 1.9% of the GDP is dedicated to defence
  • Capital Expenditure: A major chunk is allocated to modernizing the armed forces, acquiring advanced technology, and strengthening India’s defence infrastructure.
  • Revenue Expenditure: Covers salaries, pensions, and maintenance of defence establishments.
  • Indigenization & Make in India: Increased focus on self-reliance in defence manufacturing through initiatives like Atmanirbhar Bharat.

Breakdown of Defence Expenditure

The defence budget is broadly categorized as :

  1. Capital Expenditure:
    • Procurement of new weapons, aircraft, warships, and infrastructure development.
    • Investment in emerging technologies like AI, cyber warfare, and space defence.
  2. Revenue Expenditure:
    • Salaries and pensions for defence personnel.
    • Maintenance and operational costs of the armed forces.
  3. Defence Research & Development (R&D):
    • DRDO’s budget for developing indigenous defence technology.
    • Investments in next-generation warfare capabilities.
  4. Defence Pensions:
    • Allocations for retired military personnel, which constitute a significant portion of the budget.

Impact of the Defence Budget of India on National Security

The Indian Defence Budget plays a key role in ensuring:

  • Modernization of Armed Forces: Upgrading outdated equipment and adopting cutting-edge military technologies.
  • Strengthening Border Security: Enhancing surveillance, deploying advanced defense systems, and improving infrastructure in border regions.
  • Boost to Defence Manufacturing: Encouraging domestic production of arms and reducing dependency on imports.
  • Employment Generation: Defence sector investments create job opportunities in manufacturing, R&D, and allied industries.
Comparing Defence Budget of India with Other Nations

India ranks among the top five countries globally in terms of defence spending. A comparison with major military powers such as the United States, China, Russia, and the UK highlights India’s strategic priorities and the necessity of a robust defence budget.

Challenges and Future Outlook

Despite its significant allocation, India faces challenges like budget constraints, dependency on foreign arms, and rising pension costs. Moving forward, India aims to enhance self-reliance through initiatives like Make in India and increase investments in indigenous defence technology.

The Defence Budget of India reflects the nation’s commitment to strengthening its armed forces, securing its borders, and ensuring strategic preparedness. As India continues to modernize its military and focus on indigenization, defence budget allocations will play a crucial role in shaping the country’s security landscape.

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