New Delhi. Former Air Force chief BS Dhanoa once said, what would happen if a cricket team plays a match with 7 players instead of 11. Dhanoa was talking about cricket, but his target was the shortage of weapons in the Air Force. However, the good thing is that the government is now emphasizing on the manufacture of weapons instead of purchasing them. In such a situation, it is expected that this time in the defense budget, the government can provide powerful weapons to the industry.

The NDA government led by Prime Minister Narendra Modi is going to present the first budget of its third term. During the Lok Sabha elections, the opposition has been constantly attacking the government over the cuts in the defense budget and the Agneepath scheme. In this budget, all eyes will be on the announcements made by the government for the defense sector.

What is the Modi government's policy on defense?

The Modi government had made it clear in its last two terms that it is going to focus more on the defense sector. It has also emphasized on indigenization of the defense sector. It is expected that the defense sector will be taken forward in Budget 2024. However, in the interim budget presented in February this year, the government had made a provision of Rs 6.21 lakh crore for the defense sector.

The government had increased the total allocation by only five percent. On this, the government said that changes will be made in the general budget coming in July. Earlier in the year 2019 also, the government had increased the defense allocation in the previous budget as compared to the interim budget. In such a situation, it is believed that the government can increase the defense budget this year as well.

Allocations in the budget for the defense sector

India's defense budget is still low

The government is continuously increasing the expenditure on defense budget, but it is still less than countries like America and China. According to an estimate, America's defense budget is 10 times more than India's. The Dragon's defense budget is also four times that of India. Given the tension with China, India needs to increase its defense budget.

Pakistan has increased its defense budget by 15 percent

India's neighbor Pakistan is in a bad economic condition. But, it has also announced to increase its defense expenditure by 15 percent in the budget presented last month. India's dispute with Pakistan is the deepest. There have been many military conflicts between the two countries. In such a situation, there will be pressure on India to increase the defense budget.

Changes in Agnipath scheme

The government is expected to make changes in the Agneepath scheme in the Union Budget 2024. After the formation of the new government, the Ministry of Defense is conducting a comprehensive review of it. The government and its allies are preparing to make this scheme more attractive than before. It is possible that Finance Minister Nirmala Sitharaman may mention this scheme during the budget speech.

What is the production and export of the defense sector?

Talking about the production and export of the defense sector, India is consistently performing well. It has increased almost ten times in the last six financial years. In 2023-24, India's defense export has crossed Rs 21,083 crore. This is 32 percent more than the previous financial year. Then India's defense export was Rs 16 thousand crore. At present, India is exporting weapons to about 85 countries.

Defence exports on the rise

The market will also be watching

These days, every sector in the Indian stock market is witnessing a boom. Defense sector stocks have also given tremendous returns to investors. In such a situation, investors as well as the stock market will keep an eye on the announcements made for the defense sector in the budget.

According to a report by rating agency Nomura, the size of India's defense sector market can reach $138 billion in the next 10 years. The increasing demand for defense equipment and technologies will help the market in this sector grow.