For the Fiscal Year 2024-2025, India has raised its Defence Budget by 4.55 per cent, allocating approximately $74.30 billion (INR 6.21 trillion) for military expenditure. A significant focus is on the indigenization drive. Under several mantras, such as ‘Made in India’ and ‘AatmaNirbhar Bharat’ (self-reliant India), India has been pouring generous funding into the indigenization of defence manufacturing capabilities. In order the meet the emerging geostrategic challenges, the purpose of the drive is to reduce reliance on foreign procurement that eats up a significant chunk of the Defence Budget and to promote a self-reliant ecosystem of R&D and defence manufacturing industries. To achieve this objective, the Indian Defense Budget reflects a two-pronged approach. Firstly, investment in State-owned Ordnance Factories; and, secondly, investment in Corporatized State-Owned Defence Companies.[1]
