Guwahati: The defence services today received a 13 percent increase in their budget for 2023–2024, going from Rs. 5.25 lakh crore to Rs. 5.94 lakh crore, in order to fund the acquisition of significant weapon systems such as fighter aircraft, submarines, and tanks.
Moreover, the budget for modernization has increased from Rs. 1.52 lakh crore to Rs. 1.62 lakh crore this year. Under Prime Minister Narendra Modi’s Make in India programme, a sizeable chunk of the modernization budget would be used to purchase weapon systems and equipment from Indian companies.
The modernization budget increase is only about 6.5%, which is only regarded to be a minor increase.
The Indian Air Force is seeking to buy fighter aircraft under its aspirations to introduce 4.5 generation fighter planes and make investments in the indigenous fighter aircraft development plan.
The French Navy is willing to sell fighter aircraft to the Indian Navy, but it is unlikely that a deal will be reached this year because the procurement process has not yet begun.
After trials, the French Rafale aircraft was selected by the Indian Navy and recommended for purchase under a government-to-government agreement; however, the defence ministry has not yet followed the proper procedures, such as obtaining approval from the defence acquisition council.
The Navy is concentrating on getting the submarines it needs for Project 75 India, although it might take some time.
The Army would also start the acquisition procedure for light tanks and artillery systems for its operational needs on the Ladakh front.
The forces have also started a number of projects under the Make in India programme, where only Indian companies are allowed to take the lead, to acquire weaponry systems.
The forces have planned modifications to meet this need. Improving our fighting capacities in the cyber and artificial intelligence domains is likewise a top priority. The forces’ pension budget has climbed from Rs. 1.19 lakh crore last year to Rs. 1.38 lakh crore this fiscal.
The income budget for the forces has also increased, going from Rs 2.39 lakh crore last year to Rs 2.70 lakh crore, or around Rs 30,000 crore.
On Wednesday, the Union Budget for the fiscal year 2023–24 was presented by Finance Minister Sitharaman in a speech that lasted almost an hour and a half.
Defence Minister Rajnath Singh expressed optimism that the nation’s inclusion in the “Top Three” economies will result from this year’s Union Budget.
Taking to Twitter, Singh said, “The Union Budget 2023-24 is expected to bring about positive changes in the country that will lead us towards achieving our goal of becoming a USD 5 trillion economy and ‘Top Three’ economies within few years.”
According to Union Finance Minister Sitharaman, the government suggested raising capital investment outlay by 33% to Rs 10 lakh crore in 2023–24, which would be 3.3% of the GDP.
“(This overall outlay) would be 3.3 per cent of GDP, almost three times the outlay made in 2019-20. With the substantial increase, it is central to government’s efforts to enhance growth potential and job creation, the crowd in private investments and provides a cushion against global headwinds,” Sitharaman said in her Budget speech.