Union Budget 2025: Govt allocates ₹6.8 Lakh Cr for Defence sectorUnion Budget 2025: Govt allocates ₹6.8 Lakh Cr for Defence sector

Union Finance Minister Nirmala Sitharaman, in her Union Budget 2025 presentation, announced an allocation of over ₹6.8 lakh crore for the defence sector for FY2025-26. This includes a significant ₹1.8 lakh crore for modernising India’s military.

The defence budget for FY2025-26 has been increased by almost 9% from last year’s allocation of ₹6.22 lakh crore. Compared to the revised estimates of ₹6.41 lakh crore, the current year’s allocation is nearly 6% higher.

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The ₹6.8 lakh crore allocation will primarily focus on modernising military assets. This includes procuring advanced fighter jets, naval vessels, artillery, and enhancing defence infrastructure to prepare for unforeseen challenges and global conflicts.

A total of ₹1.92 lakh crore from the budget will be allocated for capital expenditure, which is essential for strengthening India’s defence technology and infrastructure. This allocation plays a crucial role in advancing India’s military capabilities.

The rest of the allocation will cover revenue expenses and pension outlays. Revenue expenditure is pegged at ₹3.11 lakh crore, while ₹1.6 lakh crore is set aside for pension payments for retired personnel and their families.

India’s defence budget for FY2025-26 accounts for 1.9% of the country’s projected GDP for 2024-25. This percentage signifies the importance of defence spending in maintaining the country’s security and preparedness against external threats.

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The government continues to prioritize self-reliance in defence procurement. Last year, it allocated 75% of capital expenditure for the purchase of weapons and equipment from domestic suppliers, and this trend continues in the FY2025-26 budget.

The defence sector’s increased budget allocation demonstrates India’s commitment to enhancing its military strength. It underscores the government’s focus on bolstering the country’s defence infrastructure while ensuring the readiness to face evolving global challenges and geopolitical tensions.

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