Interim defense budget signals India’s focus on modernisation: Report
This comes amidst an evolving geopolitical landscape.
India has allocated a substantial $55.4b to its defense ministry for 2024-2025, which signals its focus on modernisation amidst evolving geopolitical landscape, GlobalData reported.
Including pensions, the interim budget for the ministry will amount to $75.7b.
“An allocation of $21 billion is earmarked for the acquisition expenditure of new military platforms and upgrades. This signals a strategic focus on enhancing and modernizing the capabilities of the armed forces, aligning with the evolving geopolitical landscape,” Rouble Sharma, Defense Analyst at GlobalData, said.
“The recently approved purchase of 31 armed MQ-9B SkyGuardian drones from the US reflects India's dedication to integrating cutting-edge technologies into its defense infrastructure. The Indian Navy is also advancing its capabilities with the potential acquisition of 26 Rafale Marine aircraft, as France submits a detailed bid.”
This is reinforced by the announcement of a new scheme to strengthen deep technologies (deep-tech) for defense purposes and expedite ‘atmanirbharta’ (self-reliance).
“Notably, programs like the LCA-Mk2 and Future Infantry Combat Vehicle (FICV) to be developed under the ambit of the ‘Make in India’ initiative suggest a forward-looking approach, demonstrating the nation's commitment to building a robust, self-sufficient defense industry capable of meeting contemporary challenges,” she said.
“Whilst the final budgetary picture will emerge with the passing of the full budget in June-July this year, this interim allocation offers a glimpse into India's current defense priorities. Balancing between personnel costs, efficient modernization, and emerging technology adoption will be the main challenges that the government will have to navigate.”