The interim Union Budget 2019-20, presented in Parliament on February 1, 2019, allocated Rs 4,31,011 crore (US$ 60.9 billion1) to the Ministry of Defence (MoD).
Of the MoD’s total allocation, Rs 3,01,866 crore ($42.7 billion) is earmarked for what is conventionally termed as the defence budget.
Though the interim allocation may change in the regular budget to be presented by the next government after the forthcoming parliamentary elections, it nonetheless provides a broad direction of the likely spending on national defence in the ensuing fiscal year.
This Issue Brief examines India’s latest defence allocation. In so doing, it also looks at five year trends in defence allocation, key growth drivers, share of the armed forces, impact on modernisation and progress achieved on the ‘Make in India’ initiative in defence manufacturing.
The Brief begins with a broad survey of India’s macro economy and fiscal situation, which have a direct bearing on defence.