He Union Budget 2025, presented by Finance Minister Nirmala Sitharaman on February 1, 2025, allocates ₹6.81 lakh crore (~US$78.7 billion) to the Ministry of Defense, marking a 9.5% increase from the previous year. This budget underscores India’s commitment to self-reliance and modernization in the defense sector. India’s Defence Budget 2025: A Push for Self-Reliance and Modernization

Key Highlights:

Capital Outlay: ₹1.80 lakh crore (~US$20.8 billion) is designated for capital expenditures, focusing on the procurement of advanced military equipment such as light combat aircraft, helicopters, drones, and next-generation weaponry. This aligns with the ‘Atmanirbhar Bharat’ initiative, aiming to reduce dependence on imports and bolster indigenous production.

Research and Development: The Defence Research and Development Organisation (DRDO) receives an increased allocation of ₹26,816.82 crore, a 12.41% rise from the previous year. Notably, ₹14,923.82 crore is earmarked for capital expenditure to fund R&D projects, with a portion reserved for industry, startups, and academia to foster innovation.

Domestic Procurement: The budget emphasizes domestic procurement, with 75% of capital acquisitions planned from Indian manufacturers. This move is expected to boost the ‘Make in India’ initiative and strengthen the domestic defense industry.
PIB.GOV.IN

Personnel Welfare: An allocation of ₹3,11,732.30 crore is made for revenue expenditure, covering pay and allowances of armed forces personnel, as well as sustenance and operational preparedness. This represents a 10.24% increase from the previous year, reflecting the government’s commitment to the welfare of defense personnel.

These initiatives collectively aim to modernize India’s defense capabilities, promote self-reliance, and enhance the welfare of defense personnel, thereby strengthening the nation’s security framework.