SOURCE: AFI
The Union Budget has allocated a substantial ?1.72 lakh crore for capital acquisition by the Defence Ministry, marking a significant boost to India’s military modernization efforts. This substantial outlay, the largest chunk of which will be channeled into domestic industries, underscores the government’s commitment to boosting self-reliance in the defense sector.
The overall defense budget stands at ?6.22 lakh crore, a marginal increase over the interim budget allocation. While a considerable portion of this will be directed towards pensions and salaries, the capital acquisition allocation will be instrumental in bolstering the armed forces’ capabilities.
This substantial investment will be utilized to procure a wide range of new weapon systems, including fighter aircraft, warships, submarines, drones, and specialized vehicles. The modernization of the existing Su-30MKI fighter fleet, along with the acquisition of additional aircraft, engines for the MiG-29 fleet, and the procurement of C-295 transport aircraft and LCA Mk1A fighters, are among the key priorities.
The government is poised to finalize several major defense deals this year, including the acquisition of three additional submarines from Mazagon Dock Limited, the purchase of 26 Rafale Marine aircraft from France, and long-range drones from the United States.