The Union Budget 2025, set to be presented on February 1, 2025, is generating significant anticipation regarding its implications for India's defence sector and overall economic strategy.

Increased Defence Spending: The defence budget for FY 2024-25 is projected to be ₹6.22 lakh crore, reflecting a 4.79% increase from the previous year. However, experts argue that this allocation may not sufficiently address existing gaps in India's defence capabilities amid rising global security challenges.

Focus On Indigenous Manufacturing: A substantial portion of the defence procurement budget (75% of ₹1.4 lakh crore) is earmarked for indigenous products. This move aims to bolster domestic manufacturing and reduce reliance on imports, aligning with the government's broader goal of achieving 'Viksit Bharat' (Developed India).

Modern Warfare Preparedness: The budget is expected to emphasize modernization and technological advancement in the armed forces, preparing India for future conflicts. This includes encouraging innovation and potentially relaxing current procurement policies to attract foreign Original Equipment Manufacturers (OEMs) for technology transfer.

Agricultural Investments: In addition to defence, the budget may see a notable increase in agricultural spending by 15%, bringing total allocations to approximately ₹1.75 lakh crore. This funding aims to enhance rural incomes and combat inflation through improved agricultural infrastructure and production capabilities.

Tax Reforms And Economic Relief: Anticipated reforms include increases in income tax rebates and adjustments to deduction limits under Sections 80C and 80D to alleviate the financial burden on taxpayers amidst rising living costs.

Infrastructure Development: There is an urgent need for robust infrastructure investment, estimated at $2.2 trillion by 2030, to support India's ambition of becoming a $7 trillion economy. The government is expected to focus on public-private partnerships (PPP) to drive infrastructure projects across various sectors.

As India gears up for the Union Budget 2025, the emphasis on modern warfare capabilities alongside agricultural and economic reforms reflects a comprehensive approach to tackle both immediate challenges and long-term aspirations. The upcoming budget will play a crucial role in shaping India's strategic landscape and economic future amidst evolving global dynamics.

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