Budget 2025 Expectations: Experts Look For More Fund Allocation Towards Defence Education

In a recent report, analysts at PhillipCapital highlighted the defence sector as a key growth opportunity, driven by modernisation initiatives, supportive government policies, and strong global demand

Products such as missiles, radars, and armoured vehicles are now being exported to over 85 countries, the report noted

Source : PTI

As the Union Finance Minister Nirmala Sitharaman is all set to present the budget for the fiscal year 2025-26 on 1, February 2025, experts from across the sector have shared what they are expecting from the upcoming budget. In the defence sector, analysts anticipate an increase in budget allocations as the government maintains its focus on modernisation and self-reliance. 

In the FY2024-2025 budget, the finance minister allocated Rs 6.22 lakh crore to the defence sector, marking a 4.79 per cent increase from the previous year. This included Rs 1.72 lakh crore for capital expenditure, Rs 92,088 crore for operational readiness, and Rs 1.41 lakh crore for defence pensions.

Allocation Towards Defence Education

Shishir Dixit, Founder and Chairman, of Centurion Defence Academy, said, “As we approach the Union Budget 2025, we are hopeful for increased allocations towards defence education and skill development. Investments in modern infrastructure, technological advancements, and specialized training programs can empower the youth to build a stronger, self-reliant India. We look forward to policies that enable aspiring defence personnel to access world-class resources and opportunities.”

Growth Opportunities 

In a recent report, analysts at PhillipCapital highlighted the defence sector as a key growth opportunity, driven by modernisation initiatives, supportive government policies, and strong global demand.

"India ranked as the fourth-largest military spender, allocating $84 billion in 2023, accounting for 2.4 per cent of its GDP. Despite this, approximately 35 per cent of India’s defence needs are still met through imports, presenting a significant opportunity for import substitution," the report notes.

India's defence exports have experienced remarkable growth, expanding at a compound annual growth rate (CAGR) of 46 per cent between FY17 and FY24. Products such as missiles, radars, and armoured vehicles are now being exported to over 85 countries, the report noted.

Additionally, according to GlobalData's latest report, "India Defense Market Size, Trends, Budget Allocation, Regulations, Acquisitions, Competitive Landscape and Forecast to 2029," India’s defence acquisition spending reached a cumulative total of $93.6 billion between 2020 and 2024.

Akash Pratim Debbarma, Aerospace and Defense Analyst at GlobalData, said, "The increase in India’s defence acquisition budget is primarily driven by the procurement of both indigenous and imported military platforms, including Nuclear-Powered Attack Submarines, Nilgiri-class frigates, Rafale multirole aircraft, Tejas Mark 1A aircraft, Prachand Helicopters, and Zorawar main battle tanks, among others. Additionally, India’s robust economic growth over the past decade has bolstered the country’s defence spending capacity."

GlobalData projects that India will allocate approximately $93.5 billion for the procurement of indigenous military platforms between 2024 and 2029.