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Indian defence budget boosted by 9% as MoD heralds a “year of reforms”

7th February 2025 - 07:22 GMT | by Lucy Powell in London

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The Indian Air Force has 73 Tejas Mk1A aircraft on order. (Photo: Wikimedia Commons)

This new budget announcement, which has an increased focus on domestic procurement, comes as international countries arrive ahead of Aero India 2025.

India has boosted its defence budget by 9% for the FY2025–26 financial year. A total of INR6.8 trillion (US$78 billion), up from INR6.2 trillion, has been allocated to the sector, amounting to 13.4% of its total national spending.

From this amount only 26%, or INR1.8 trillion, was reportedly allocated for the purchase of new aircraft, warships and other equipment to outfit and modernise its defence forces.

Significantly, INR1.2 trillion in the budget was allocated to domestic procurement, emboldening the government’s ‘Make in India’ initiative and the country’s focus in recent years on self-reliance in the defence sector.

The Indian Ministry of Defence (MoD) said that

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