While presenting the budget in Parliament, the Finance Minister allocated Rs 6.22 lakh crore to the defence sector. This allocation is the highest among all sectors and is 12.9% of the total budget allocation. The budget allocation of Rs 6.22 lakh crore to the Defence Ministry is the same as the allocation made in the interim budget but shows an increase of 4.79% compared to the allocation presented in the financial year 2023-24.
The full budget made a provision to allocate an additional Rs 400 crore on development of innovative technologies through the iDEX (ADITI) scheme. The Defence Ministry has earmarked 75% of its modernisation budget this fiscal, which was ₹1.06 lakh crore, for procurement through domestic industries. A press release issued by the Defence Ministry said that this will have a “multiplier effect on GDP, employment generation and capital formation, thereby boosting the economy.”
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