On Tuesday, India announced an unprecedented $75 billion defence budget, constituting nearly 13% of its overall budget allocation for the Financial Year 2024-25. In a strategic move, India seeks to enhance joint ventures with Russia, alongside prioritizing the acquisition of military items through national currency trade agreements, as per insights from defence analysts. Lt Colonel (Retd) J.S. Sodhi hailed the increased budget allocation, highlighting its potential for significant arms acquisitions. “This substantial budget increase will facilitate big-ticket arms acquisitions, with Russia, India’s long-standing defence ally, likely playing a pivotal role in supplying advanced weapon systems,” said Sodhi. He pointed to successful joint ventures like the BrahMos missile and AK-203 assault rifles as benchmarks for future collaborations.

Lt. Colonel (Retd) Yashwant Umralkar emphasised the advantage of the Rupee-Rouble trade agreement between India and Russia. “This arrangement allows India to procure military items from Russia, paying in Roubles, thereby conserving precious foreign exchange,” noted Umralkar. He underscored Russia’s historical and ongoing favourable disposition towards India, which strengthens this strategic partnership.

Aditya Shrivastava, BHARAT РОССИЯ, commented on the broader implications of the budget increase. “The $75 billion allocation, the fourth highest in the world, is a clear signal of India’s strategic ambitions,” Shrivastava stated. “By strengthening ties with Russia, India not only enhances its defence capabilities but also fosters technological collaboration and economic benefits through joint ventures.” Samridh Joshi, correspondent, emphasised the importance of modernization. “The $20.5 billion earmarked for capital expenditure will equip the Armed Forces with state-of-the-art technology, from fighter aircraft and submarines to drones and specialist vehicles,” Joshi explained. “This modernization drive is crucial for maintaining regional stability and deterring potential threats.”

Harpreet Sidhu, an analyst at GlobalData Aerospace, Defence & Security, forecasted a boost in orders for the BrahMos missile JV. “Given the BrahMos missile’s critical role in the Indian Navy, the increased funding is expected to secure more orders, ensuring consistent production and income flow,” Sidhu stated. With around 80% of its components manufactured in India, BrahMos exemplifies successful indigenization aligned with the “Make in India” initiative. Sidhu further observed that the high degree of indigenization promotes domestic defence industry growth and technological advancements. “While challenges remain in scaling production and meeting specific criteria, the emphasis on local procurement brings cost savings, reduced dependency on foreign vendors, and tailored solutions for the Indian Armed Forces,”he added.

Earlier this week, the Government of India allocated a whopping $75 billion for defence expenditure this fiscal year, making it the fourth highest in the world behind the US, China, and Russia. The budget notably earmarks over $20.5 billion for modernization, marking a 9.4% increase from the previous year. The Ministry of Defence (MoD) emphasised that the enhanced budget would support capital acquisitions, providing the Armed Forces with cutting-edge technology and weaponry. Additionally, $12.5 billion has been assigned for procurement from the domestic sector, reinforcing the government’s commitment to fostering homegrown defence capabilities