Sat Feb 01 04:30:00 UTC 2025: ## India’s Defence Budget Set for a Boost in Upcoming Fiscal Year
**New Delhi, February 1, 2025** – India’s upcoming budget, to be presented by Finance Minister Nirmala Sitharaman today, is expected to significantly increase capital expenditure for the defence sector. While the defence outlay for 2024-25 stood at ₹6.22 lakh crore (a 4.79% increase from the previous year), with ₹1.72 lakh crore allocated for capital expenditure on new weaponry, experts predict a further rise in the coming fiscal year (2025-26). Estimates suggest defence spending will remain between 1.9% and 2% of the GDP.
The increased allocation reflects India’s ongoing modernization efforts and focus on self-reliance in defence manufacturing under the ‘Aatmanirbhar Bharat’ initiative. This includes recent major procurements like 22 Rafale marine jets and three Scorpene submarines from France, along with the acquisition of T-72 Bridge Laying Tanks to enhance the army’s operational capabilities. The government is also emphasizing increased private sector participation and public-private partnerships within the defence industry.
Reports indicate that capital expenditure for defence could reach ₹1.9 lakh crore in Budget 2025, prioritizing the modernization of military vehicles, acquisitions for the Indian Air Force, and upgrades to the Indian Navy fleet. The budget is also likely to address challenges in utilizing funds allocated in previous years. The focus on reducing imports and strengthening domestic defence production is expected to be a key theme, with significant implications for related stocks. Shares in companies like Hindustan Aeronautics (HAL), BEML, Solar Industries India, Bharat Electronics, and Cochin Shipyard have already shown strong growth in anticipation of these developments. The upcoming budget will be closely monitored for details on these initiatives and their impact on India’s defence preparedness.
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