Budget 2025: How Has India's Defence Budget Grown Under PM Modi? A Look At A Decade Allocations

As the Modi government gears up to present its 11th Union Budget in 2025-26, defence modernisation and self-reliance in military production remain key priorities. Over the past decade (2014-2024), India has significantly increased its defence expenditure, bolstering the capabilities of the Indian Army, Indian Air Force, and Indian Navy through indigenous manufacturing and strategic investments.

From intercontinental ballistic missiles and fighter jets to submarines and missile defence systems, India's progress in defence technology is largely attributed to consistent and rising budgetary allocations. Here's a detailed look at how the defence budget has evolved under the Modi government, as reported by News9Live.

Photo Credit: PTI

Defence Budget Growth from 2014 to 2025

Budget 2024-25: ₹6.21 Lakh Crore (Highest Allocation)

• The Ministry of Defence (MoD) was allocated ₹6,21,940.85 crore, marking the highest allocation among all ministries.
• The defence budget increased by 18.43% compared to FY 2022-23 and accounted for 4.79% of the total Budget 2023-24.

Budget 2023-24: ₹5.93 Lakh Crore

• 13.18% of India's total budget (₹45.03 lakh crore) was allocated to defence.
• A significant portion, ₹1,38,205 crore, was reserved for Defence Pensions.

Budget 2022-23: ₹5.25 Lakh Crore

• Defence accounted for 13.31% of the total budget (₹39.45 lakh crore).
• ₹1.19 lakh crore was allocated for Defence Pensions.

Budget 2020-21: ₹3.37 Lakh Crore (Excluding Pensions)

• Total defence outlay: ₹30.42 lakh crore.
• ₹1,33,825 crore was allocated for Defence Pensions.

Budget 2019-20: ₹4.31 Lakh Crore (Including Pensions)

• The Defence Ministry received ₹3,18,931.22 crore, while ₹1,12,079.57 crore was earmarked for pensions.

Budget 2018-19: ₹2.95 Lakh Crore

• The total defence allocation was part of India's ₹24.42 lakh crore budget.

Budget 2017-18: ₹3.59 Lakh Crore (Including Pensions)

• The allocation covered all military services, production establishments, and R&D organisations.

Budget 2016-17: ₹3.89 Lakh Crore

• The budget saw a less than 5% increase from 2015-16, amounting to 1.75% of India's GDP.

Budget 2015-16: ₹2.46 Lakh Crore

• Represented a 7.7% increase from the previous year's allocation.

Budget 2014-15: ₹2.29 Lakh Crore

• The Modi government introduced 49% FDI in defence, aiming to boost domestic manufacturing.

Key Takeaways: 10 Years of Defence Budget Growth

• Consistent Increases - Defence allocations have steadily risen under the Modi government, from ₹2.29 lakh crore in 2014 to ₹6.21 lakh crore in 2024, as reported by News9Live.
• Self-Reliance Focus - Major initiatives like 'Make in India' have led to domestic production of missiles, fighter jets, and submarines.
• Higher Pension Allocations - Defence pensions have seen significant budgetary provisions, supporting retired military personnel.
• Strategic Expansion - India has strengthened its air, naval, and land defence systems with better funding and modernisation programs.

What to Expect in Budget 2025?

With growing geopolitical challenges and India's ambition to become a global defence powerhouse, Budget 2025 is expected to maintain high defence allocations. Experts anticipate:

• Increased capital expenditure for indigenous weapon systems.
• Further expansion of private sector participation in defence manufacturing.
• Boost for R&D in AI-driven warfare and cybersecurity.

As India moves forward, the Modi government's commitment to a strong, self-reliant military remains evident in its budgetary priorities. Will Budget 2025 push India's defence ambitions even further? We'll find out soon.