India's defence budget for 2024 is set at approximately $74.7 billion, positioning the country as one of the largest military spenders globally. This significant financial commitment reflects India's ambition to emerge as a military superpower, driven by a strategic focus on self-reliance and modernization of its armed forces. The budget marks a notable increase from previous years, with an emphasis on reducing dependency on foreign arms through initiatives like "Make in India," which encourages domestic production and innovation within the defence sector.

The Indian defence ecosystem is evolving rapidly, with a robust industrial base comprising 41 ordnance factories, nine defence public sector undertakings, and over 100 private enterprises. This transformation is supported by government policies aimed at enhancing local manufacturing capabilities and attracting foreign investment. Recent reforms have allowed for increased foreign direct investment (FDI) in the defence sector, facilitating joint ventures and technology transfers that further integrate India into the global defence supply chain.

Despite these advancements, challenges remain, particularly in procurement processes that have historically led to delays and underutilization of allocated funds. For instance, in the 2024-25 fiscal year, the Ministry of Defence returned ₹12,500 crore due to unspent budget allocations. The focus for the upcoming years includes streamlining procurement procedures and bolstering research and development efforts to ensure that India can maintain technological parity with regional adversaries.

As India continues to navigate a complex geopolitical landscape, including tensions with neighbouring countries like China, its defence budget reflects a commitment to enhancing military capabilities while fostering a self-sufficient defence industry. The projected cumulative defence expenditure from 2024 to 2028 is expected to reach $445.7 billion, underscoring India's determination to strengthen its military stature and operational readiness in an increasingly competitive environment.

RW Report