New Delhi, India

India stood at fourth spot in Global Firepower's Military Strength Rankings 2024, above nations like the United Kingdom and Japan. The United States has been ranked first, followed by Russia and China. As per the ranking, India has an estimated total of 5,137,550 military personnel. 

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India has emerged as a major superpower in the area of defence in the last decade, with substantial and consistent increases in budget and investments. 

This year also, it is expected that the Indian government may come up with some announcements in the defence sector as Finance Minister Nirmala Sitharaman is all set to present the interim budget on February 1. 

Notably, 2024 is an election year, so the budget's main focus will be on maintaining essential services, with the main budget coming after the new government takes over. Sitharaman has already told us to not expect any "major announcements". 

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Also read: Business Jargon Buster: Budget edition 

What to expect? 

India proposed $72.6 billion in defence spending for the 2023-24 financial year, which was 13 per cent up from the previous period's initial estimates. 

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In the last budget, India aimed to add more fighter jets and build roads and infrastructure along its tense border with China. As per the report, India possesses a total of 2,210 aircraft, 4,614 tanks, and 295 assets in terms of naval forces. 

This year, it is expected that the government will continue its growing focus on digitisation, modernisation, and indigenisation. 

A report by Upstox mentioned that the defence experts have been advocating for an increase in the defence budget to around three per cent of GDP. 

The report also mentioned that a significant budget hike is expected keeping in mind the contractual obligations and resource allocation for modernisation. 

The budget is also expected to address salary hikes, pension funds, strategic needs, and a continuous upgradation in research and development and strategic partnerships with domestic industries. 

Also read: Interim Budget 2024: What is the ‘lock-in’ process? Why is it so special?

What is an interim budget? 

The Interim Budget is a temporary financial plan announced before a new government is set to come in after general elections in the same year, unlike the regular budget, in which the government presents spending details and announces new policies.

The vote-on-account is passed through the interim budget, and it seeks parliamentary approval for the government to meet expenses for just a few months. 

(With inputs from agencies)