Defence will be one of the key focus areas for the upcoming Union Budget 2025, as the government intensifies its efforts to achieve self-reliance in design, development and manufacturing of defence equipment. The budget should propose an increase in the capital outlay for the defence sector to bolster capacity and capability, driving progress towards achieving self-reliance and attaining the defence exports target of ₹50,000 crore by 2029. With a dynamic defence manufacturing sector, India can boost indigenisation as well as domestic procurement of defence products and can become a global hub for sourcing advanced defence equipment. Therefore, the budget needs to propose measures and schemes that encourage technology transfer, public-private partnerships, R&D and collaboration with global players and Original Equipment Manufacturers (OEMs). A strong defence manufacturing ecosystem will help the sector unlock emerging opportunities.
Jaikaran Chandock, Director, Balu Forge Industries Ltd.