The Union Budget 2025 is expected to be unveiled on February 1, 2025, and there is a lot of interest in how it will affect India’s defence industry and overall economic plan.
The estimated ₹6.22 lakh crore defence expenditure for FY 2024–2025 represents a 4.79% increase over the previous year. Experts contend that, in light of growing international security concerns, this expenditure could not adequately address current shortfalls in India’s defence capability.
75% of ₹1.4 lakh crore, or a significant amount of the defence procurement budget, is allocated for domestic goods. In line with the government’s overarching objective of realising “Viksit Bharat” (Developed India), this action seeks to strengthen domestic industry and lessen dependency on imports.
In order to prepare India for upcoming conflicts, the budget is anticipated to place a strong emphasis on modernisation and technological advancement in the armed services. Promoting innovation and maybe easing existing procurement regulations are two ways to draw in international Original Equipment Manufacturers (OEMs) for knowledge transfer.
The budget may see a significant 15% boost in agriculture spending in addition to defence, increasing total commitments to over ₹1.75 lakh crore. By strengthening agricultural infrastructure and production capacities, this investment seeks to raise rural incomes and fight inflation.
Increases in income tax refunds and modifications to Section 80C and 80D deduction limitations are among the anticipated improvements aimed at easing the financial strain on taxpayers in the face of growing living expenses.
To support India’s goal of becoming a $7 trillion economy, significant infrastructure investment is urgently needed, with an estimated $2.2 trillion needed by 2030. In order to propel infrastructure initiatives throughout many industries, the government is anticipated to concentrate on public-private partnerships (PPP).
The focus on agricultural and economic changes in addition to modern military capabilities as India prepares for the Union Budget 2025 shows a comprehensive strategy to addressing both short-term issues and long-term goals. In light of shifting global dynamics, India’s strategic landscape and economic destiny would be significantly shaped by the next budget.