Defence Budget: A Major Leap for Atmanirbhar Bharat, Say Industry Leaders

Industry leaders have expressed their approval of the Rs 6.22 lakh crore defence budget allocation for 2024-25, with some describing it as a landmark move. Ashish Saraf, vice president and country director of Thales in India, praised the government and Finance Minister Nirmala Sitharaman for this significant allocation, highlighting its importance for national security and technological progress.

The government has allocated Rs 1.72 lakh crore for military capital expenditure, which includes the acquisition of new weapons, aircraft, warships, and other military hardware. This capital outlay aims to enhance the capabilities of the Indian armed forces by integrating advanced technology equipment.

Focus on Domestic Procurement

Rs 1,05,518.43 crore has been earmarked for domestic capital procurement, significantly boosting the Atmanirbhar Bharat initiative. This move is expected to promote self-reliance in defence manufacturing and increase defence exports. Saraf noted that these initiatives align with the broader goal of Viksit Bharat 2047, positioning India as a global leader in defence technology and innovation.

Additionally, Rs 518 crore has been allocated to the iDEX scheme to foster innovation and support startups, MSMEs, and innovators in the defence sector. "We are also pleased to see the allocation of Rs 518 crore to the iDEX scheme," Saraf added.

Industry Reactions

Baba Kalyani, chairman and MD of Bharat Forge Ltd, described the budget as excellent, emphasizing its focus on strengthening fundamental pillars that will propel India's economy towards Viksit Bharat. He highlighted that while the defence budget was anticipated, initiatives like the Critical Minerals Mission and Small Modular Nuclear Reactors strategy will significantly bolster the Aatmanirbhar Bharat agenda.

Kalyani stated, "We are all greatly inspired by the vision for a Viksit Bharat by 2047 and I am confident that these initiatives collectively signal a robust blueprint for India's progressive, integrated and inclusive development."

Commitment to Manufacturing

Capt Nikunj Parashar, co-founder and CEO of Sagar Defence Engineering Pvt Ltd, commended Finance Minister Sitharaman's commitment to enhancing India's domestic manufacturing capabilities. He believes this will pave the way for India to become a global manufacturing hub.

"As the visionary budget marks a significant stride towards realising the aspirations for a developed and self-reliant India under the vision of Viksit Bharat 2047," Parashar said. He looks forward to more schemes that will further propel the defence manufacturing ecosystem.

The government's dedication to fostering industrial growth and innovation is expected to catalyse economic resurgence and job creation on an unprecedented scale. Parashar added, "We look forward to this year's agenda reinforcing our economic resilience while setting a robust foundation for sustainable progress and prosperity in Amrit Kaal."

At Thales, Saraf reiterated their commitment to contributing to these transformative efforts by leveraging global expertise to support India's journey towards self-reliance and excellence in defence.

The defence outlay of Rs 6.22 lakh crore represents 12.9% of the total budget. This allocation underscores the government's focus on strengthening defence capabilities and promoting technological advancement within India's armed forces.