Budget Expectations Defense allocation likely to exceed 2 percent of GDP mark in 2025 budget
Budget 2025 Expectations: As India awaits the Union Budget 2025-26, major changes are expected to affect various industries and sectors. Will there be a higher share of important sectors such as defense in the next Budget?
The Union Budget 2025-26 is likely to announce an allocation of Rs 6.7 lakh crore for security, taking its share to over 2 percent of the country’s gross domestic product (GDP), sources told Zee Business. If it happens, such an allocation for the defense sector would mark a 7.7 percent increase from the July Budget allocation.
The higher share of defense would entail a capital expenditure (capex) of Rs 2 lakh crore, according to sources.
Capex is the amount of money set aside to purchase long-term assets, such as new equipment.
The Ministry of Defense has already decided to keep the year 2025 as the transition year.
As India entered the New Year, Defense Minister Rajnath Singh said the transition year would be a “significant step” in the “military’s modernization journey”.
The year will lay the foundation for unprecedented progress in defense preparedness, ensuring India’s security and sovereignty amid the challenges of the 21st century, he said.
Changes should focus on new domains such as the Internet and space, as well as emerging technologies such as artificial intelligence (AI), machine learning (ML), hypersonics and robotics.
