India’s Defence Budget 2020-21
(Source: Institute for Defence Studies and Analyses; issued Feb 04, 2020)
Presenting her second and Narendra Modi Government’s seventh regular budget on February 1, 2020, Finance Minister Nirmala Sitharaman earmarked Rs. 4,71,378 crore (US$ 66.9 billion1) for the Ministry of Defence (MoD), stating that national security is a top priority of the government.

Of the MoD’s total allocations, Rs. 3,23,053 crore ($45.8 billion) has been provided under the Defence Services Estimates (DSE), an annual publication of the finance wing of the MoD that primarily deals with the expenses of the three armed forces and the Defence Research and Development Organisation (DRDO), and is popularly considered as India’s defence budget. The balance allocation is distributed between defence pensions (Rs. 1,33,825 crore or $19.0 billion) and MoD (Civil) (Rs. 14,500 crore or $2.1 billion).

Representing a growth of 9.4 per cent, MoD’s overall allocation translates into an increase of Rs. 40,367 crore. This raises the question, how would this increase affect India’s defence and modernisation in particular?

This issue brief assesses the impact of the latest allocations of the MoD, and, in so doing, examines the major components of the said allocations and also situates them in a longer time frame, wherever necessary, to benefit from a trend analysis.

Click here for the full report (14 PDF pages), on the IDSA website.


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