Experts are emphasising the need for increased capital in India's defence budget to enhance capacity building and modernization efforts. The recent Union Budget 2025 allocated ₹6.81 lakh crore (approximately $78.57 billion) to the Ministry of Defence, marking a 9.5% increase from the previous year. However, experts argue that this is insufficient given the current geopolitical challenges and operational shortfalls faced by the armed forces.

Of the total allocation, ₹1.8 lakh crore is earmarked for capital expenditure, with ₹1.48 lakh crore specifically for modernization initiatives. This reflects an ongoing commitment to upgrade military capabilities in response to evolving threats, particularly from neighbouring countries like Pakistan and China.

A significant portion (75%) of the modernisation budget is set aside for domestic procurement, aligning with India's Atmanirbhar Bharat initiative aimed at boosting self-reliance in defence manufacturing.

Despite the increase in budget, experts highlight that the armed forces continue to face critical gaps in various areas such as fighter jets, submarines, and advanced missile systems. Retired Commodore Anil Jai Singh suggested that a defence budget of around 2.4% of GDP would be more appropriate to address these capability gaps effectively.

The allocation for the Defence Research and Development Organisation (DRDO) has also seen an increase, with a focus on fostering innovation and developing new technologies essential for modern warfare.

While the Union Budget 2025 demonstrates a commitment to enhancing India's defence capabilities, experts advocate for a more substantial investment to ensure that the armed forces are adequately equipped to meet contemporary security challenges. The call for a budget aligned closer to 2.4% of GDP underscores the urgency for comprehensive modernization and capacity building within India's defence sector.

NIE News