The Indian government has unveiled a substantial ₹1.72 lakh crore allocation for capital acquisition within the defence ministry's total budget of ₹6.22 lakh crore. This significant investment aims to bolster the capabilities of the armed forces through the procurement of new weapon systems, primarily from domestic industries.
The allocated funds will be directed towards the acquisition of a wide range of cutting-edge military equipment, including fighter aircraft, ships, submarines, drones, and specialized vehicles. Key projects include the modernization of the Su-30MKI fighter fleet, procurement of engines for the MiG-29 fleet, and the purchase of C-295 transport aircraft and LCA Mk1A fighters.
Major deals anticipated this year include contracts for three additional submarines from Mazagaon Dockyards Ltd, 26 Rafale Marine fighters from France, and long-range drones from the US. Defence Minister Rajnath Singh expressed his gratitude for the significant allocation, emphasizing its positive impact on GDP, employment generation, and capital formation.
The budget also includes increased allocations for flagship schemes such as Agnipath, with a significant hike to ₹5,979 crore. Additionally, ₹400 crore has been allocated for fostering innovation in defence through the ADITI scheme, which provides financial support for specific product development projects.
Border infrastructure development remains a key priority, with a 30% increase in funding for the Border Roads Organisation (BRO). This allocation will support projects such as the development of Nyoma airfield in Ladakh, Shinku La tunnel in Himachal Pradesh, and Nechiphu tunnel in Arunachal Pradesh.
This comprehensive investment in defence capabilities underscores the government's commitment to modernizing the armed forces and enhancing India's national security. By prioritizing domestic procurement, the initiative also aims to stimulate the growth of the indigenous defence industry and contribute to the overall economic development of the nation.
