Union Budget 2025: Unchanged defence allocation, focus on reforms likely

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Union Budget 2025: Unchanged defence allocation, focus on reforms likely - Business Standard

Quick Summary:

In July, the MoD received an allocation of approximately Rs 6.22 trillion (around $75 billion)—the highest among all ministries—in the Union Budget for FY25, with a specific emphasis on addressing ‘critical capability gaps’ through ‘big-ticket acquisitions’ during the current and subsequent financial years.

In the initial years of the National Democratic Alliance-I (NDA-I), this promise was upheld, with defence expenditure rising as a proportion of both the national budget and GDP.

This underscores the continued decline of India’s defence budget as a share of GDP and the national budget — a trend that has persisted year after year, reaching its lowest point since perhaps 1960.