New Defence Acquisitions & Make in India (2024-25 Budget Allocation)

Boosting Indigenous Arms Manufacturing & Reducing Imports

India’s defence budget for FY 2024-25 has reached a record ₹6.81 lakh crore ($75 billion), reflecting its strategic emphasis on modernization, indigenous defence production, and export growth. With 75% of capital procurement reserved for domestic firms, India aims to reduce reliance on imports, enhance indigenous manufacturing under Aatmanirbhar Bharat, and boost global defence export.

Table of Contents

  1. Budget Allocation & Key Trends (2024-25)
  2. Major Defence Acquisitions & Indigenous Development
  3. Progress in Defence Exports & Import Reduction Strategy
  4. Strengthening Defence R&D & Private Sector Participation
  5. Critical Analysis: Strengths, Weaknesses & Gaps
  6. Future Roadmap & Policy Recommendations

Budget Allocation & Key Trends (2024-25)

Budget Allocation Breakdown

Category Budget Allocation (₹ Crore) % of Total Defence Budget Change from 2023-24
Total Defence Budget ₹6,81,210 13.45% of Union Budget +9.53%
Capital Acquisition ₹1,80,000 26.43% +4.65%
Revenue Expenditure ₹3,11,732 45.76% +10.24%
Defence Pensions ₹1,60,795 23.60% +13.87%
Research & Development (R&D) ₹26,816 - +12.41%
Indigenous Procurement Share ₹1,11,544 75% of modernization budget

Key Trends & Policy Directions

  • Increased capital allocation for modernisation with ₹1.80 lakh crore for acquisitions.
  • Significant rise in R&D funding (+12.41%) for AI, cyber warfare, and autonomous weapons.
  • Defence exports increased to ₹21,083 crore (+32.5%), with India targeting ₹50,000 crore by 2029.
  • Expansion of defence start-ups & MSME participation through iDEX & ADITI programs.

Major Defence Acquisitions & Indigenous Development

Key Acquisitions Under Make in India

Category Acquisition/Development Budget (₹ Crore)
Tanks & Armoured Vehicles Future Ready Combat Vehicles (FRCV), Armoured Fighting Vehicles ₹1,44,716
Aircraft & UAVs Dornier-228, Long-Endurance RPAS (MQ-9B Guardian Drones) ₹31,000
Naval Systems Next-Gen Frigates, Fast Interceptor Craft, INS Tushil ₹21,772
Missiles & Defence Systems BrahMos Missiles, Akash-NG, High-Power Radar ₹19,518
Electronic Warfare & AI Shakti EW Systems, AI-based Battlefield Awareness ₹2,269

Key Indigenization Programs

  • Light Tank ‘Zorawar’ tested successfully for desert & high-altitude warfare.
  • INS Arighaat (Second Arihant-Class Nuclear Submarine)
  • C-295 Transport Aircraft Complex (Tata-Airbus) inaugurated, enabling domestic aircraft production.
  • LCH Prachand (Light Combat Helicopter) Inducted, strengthening IAF attack capabilities【36】.

Defence Contracts Awarded to Indian Firms

Company Contract Awarded Budget (₹ Crore)
HAL (Hindustan Aeronautics Ltd.) 240 AL-31FP engines for Su-30MKI ₹26,000
Bharat Electronics Ltd. (BEL) 11 Shakti EW Systems ₹2,269
BrahMos Aerospace Pvt. Ltd. Ship-borne BrahMos missile system ₹988
L&T (Larsen & Toubro) K9 VAJRA-T Self-Propelled Artillery ₹7,628
Mazagon Dock Shipbuilders 14 Fast Patrol Vessels ₹1,070

Progress in Defence Exports & Import Reduction Strategy

Record Growth in Defence Exports

Year Defence Production (₹ Crore) Defence Exports (₹ Crore)
2014-15 ₹46,429 ₹1,941【39】
2022-23 ₹1,08,684 ₹15,920【39】
2023-24 ₹1,27,000 ₹21,083【39】
Target for 2029 ₹3,00,000 ₹50,000【39】

Steps to Reduce Imports

  • 509 items banned from import under Indigenization Lists (Positive Indigenization List - PIL).
  • DPSUs substituted ₹3,400 crore worth of imported components with local production.
  • 75% of procurement budget reserved for Indian firms, minimizing foreign dependency.