BUMPS AND BARRIERS

Despite making considerable headway, the DICs are way short of attracting the anticipated level of industry participation and economic vibrancy VISHAL DUGGAL reports

- VISHAL DUGGAL

In its Press Release of April 1, 2025, theIndia’s defence budget has risen to ₹6.81 lakh crore (about $78 billion) for the year 2025-26, which is a 9.5 per cent increase from last year. As of 2025, India is the third-largest military spender, with its defence budget exceeding 2 per cent of GDP. This expansion underscores the nation’s intent to secure its borders, assert regional influence, and become a force to reckon with on the global stage by pursuing a policy of atmanirbharta in defence.

Pertinently, Indian defence production reached a record ₹1,26,887 crore ($15.4 billion) in the fiscal year 2023-24, marking a 16.8 per cent increase from the previous fiscal year. Also, India's defence exports witnessed a 32 per cent surge, reaching ₹21,083 crore ($2.5 billion) in 2023-24. A slew of policy initiatives has been introduced in recent years to encourage the growth of indigenous design, development and manufacture of defence equipment.