Indian defence budget gets a robust hike of 17.6 per cent
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  • According to reports, with several crucial acquisitions in the pipeline, India’s defence budget has got a robust hike of 17.6 per cent with the maximum amount of modernisation funds allocated for the Air Force, which is in the process of finalizing a multi-billion dollar contract for new generation combat aircraft. India’s military expenditure remains less than 2 per cent of the GDP, a parameter that is rare for a nation on a major modernisation drive. While last year the budget was pegged at 1.83 per cent of the GDP, this time there has been a marginal increase to 1.9 per cent of the GDP. Of the Rs 1.93 lakh crore defence budget, close to 41 per cent or Rs 79, 579 crore has been earmarked for capital acquisitions. The Air Force will get over Rs 29,853 crore for modernisation this year. Navy will get over Rs 23,865 crore. The largest capital head is for the acquisition of new aircraft for the IAF at Rs 23,701 crore. A multi-billion dollar contract for new fighters, in all likelihood the French Rafale, is set to be signed this year. The Navy has also got a significant amount of Rs 13,617 crore for modernisation of its fleet with several new warship acquisitions in the pipeline. The Army has got the lowest share of the capital budget — Rs 18,828 crore — for modernisation. The capital budget for research and development for the three forces has, however, remained static at Rs 4,640 crore, a minuscule Rs 18 crore hike from last year. 1

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