Finance Minister Nirmala Sitharaman, presenting her maiden budget on July 05, 2019, kept unchanged the allocation provided to the Ministry of Defence (MoD) in the interim budget on February 01, at Rs 4,31,011 crore ($ 61.96 billion).1
Nonetheless, she changed the composition of the MoD’s budget by shifting few of the elements from one head of expenditure to another. With the overall budget of the MoD remaining the same, the FM also changed the basic customs duties for certain defence imports, in an attempt to lessen the resource crunch facing modernisation of the armed forces.
This Brief examines India’s latest defence allocations, the distribution pattern of resources, shares of various stakeholders in the defence allocation and the possible impact on defence modernisation. It also looks at the Make in India initiatives announced in the budget that have an impact on defence production. It begins with a brief survey of the heath of the Indian economy in order to appreciate the larger context of the defence allocation.
Click here for the full report (12 PDF pages), on the IDSA website.