Defence Secretary Raj Kumar Singh has stated that India intends to raise its defence spending to 2.5% of its Gross Domestic Product (GDP) over the next few years.This initiative is aligned with the government’s broader strategy to enhance military strength and promote the growth of domestic defence production.
Seeking Higher Defence Budget
Singh mentioned that the Ministry of Defence will request additional funds during the 16th Finance Commission’s five-year cycle. He also highlighted that the ministry has been effectively utilizing its budget, meeting quarterly expenditure targets.
“Capital expenditure has never faced any significant limitations or restrictions. The challenge was in fully utilizing the allocated budget. However, We met our target last year, and this year as well, we are progressing as planned,” Singh stated.
If the defence sector continues to spend funds efficiently, the government may seek more money during the revised budget estimates stage. “The pace at which we sign contracts, make procurement choices, and the industry’s capacity to utilize the funds will determine the outcome,” he added.
Major Contracts and Fast-Track Procurements
In the financial year 2025, India signed two major defence contracts worth ₹2 lakh crore. To keep up the pace, the government is also looking at faster procurement methods and emergency purchases to speed up deliveries.
“We have already made some quick emergency purchases, and there could be more fast-track deals.If required, we will request more funds during the revised estimate process,“ Singh stated.
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Focus on ‘Make in India’ and Self-Reliance
The Defence Secretary emphasized that 75% of the defence budget will be spent within India, covering key areas like aerospace, shipbuilding, missiles, and ammunition. This aligns with the government’s ‘Make in India’ and ‘Viksit Bharat 2047’ initiatives, which aim to boost domestic production and reduce dependence on foreign suppliers.
New Approach for Fighter Jet Program
To encourage private and foreign companies to participate in defence projects, the government has introduced a new execution model for the fifth-generation fighter jet program. This ensures a level playing field for private firms alongside public sector units (PSUs).
India is also expecting the delivery of F404 engines from the U.S. for its Tejas fighter jets. Additionally, the government is considering a joint manufacturing proposal with Russia for the Sukhoi Su-57 stealth jets.
Conclusion
India is advancing the modernization of its armed forces by raising defence spending, speeding up procurement procedures, and promoting homegrown manufacturing. The primary goal is to enhance national security while encouraging growth in the domestic defence sector.
Disclaimer:
The information in this article is based on publicly available sources and statements at the time of publication. Figures and plans mentioned, including budget estimates and procurement details, may be subject to change based on official revisions or government announcements. This content is for general informational purposes only and does not constitute official government policy or financial advice.
