Finance minister Nirmala Sitharaman on Thursday allocated Rs 6.21 lakh crore to the defence sector for 2024-25, a modest hike from last year’s allocation of Rs 5.93 lakh crore amid the growing threats from China on the northern borders, especially in eastern Ladakh.
Of the total allocation for the defence sector in the interim budget, Rs 1.72 lakh crore has been set aside for military capital expenditure that largely includes purchasing new weapons, aircraft, warships and other military hardware.
Rs 1.41 lakh crore has been allocated for 32 lakh pensioners this year against Rs 1.38 lakh crore last year.
Sources said major acquisition plans were ready for the armed forces, including light tanks, submarines, fighter jets, transport aircraft C-295 and missile systems considering the challenges posed by China on the northern borders.
A defence ministry official said the armed forces had drawn up an ambitious modernisation plan. The air force wants several combat planes and helicopters to replace its Soviet-era aircraft and the navy has planned for a dozen submarines to counter the ever-expanding Chinese presence in the Indian Ocean. The army, a large part of which is deployed along the India-China and India-Pakistan frontiers, plans to procure assault rifles, surveillance drones and body armour to bolster its combat prowess.
Indian and Chinese troops have been locked in a border standoff at multiple transgression points in eastern Ladakh since May 2020. The People’s Liberation Army (PLA) is said to have altered the unmarked Line of Actual Control (LAC) at these points and is estimated to have taken over close to 1,000sqkm of India-claimed territory. Sources said the PLA has been constantly increasing troops and continues to strengthen its positions at the transgression points.
“In the light of the continued threat perception faced at the Indo-China border, there continues a jump in the Capital Budget allocation to the Border Roads Organisation…. This indicates the commitment of the Government to improve border infrastructure. The financial provision made during the budget this year, will, apart from promoting strategic infrastructural development in the border areas, also boost socio-economic development in that region along with promoting tourism,” the defence ministry said in a statement.
“Projects such as the development of Nyoma Airfield in Ladakh at an altitude of 13,700 feet, permanent bridge connectivity to southernmost Panchayat of India in Andaman and Nicobar island, 4.1km strategically important Shinku La tunnel in Himachal Pradesh, Nechiphu tunnel in Arunachal Pradesh and many other projects will be funded out of this allocation,” it added.
The ministry said the allocation to the defence sector this year is 13.04 per cent of the total Union budget.
