Archive · 23 Jun 2025
India's Defence Secretary: Procurement Speed Key, Not Budget Size
Some people think India should spend more money on defense.
The Defense Secretary says money isn't the problem; spending it quickly is.
The government used all the money they planned to spend this year.
They also signed a lot of contracts to buy equipment.
The Defense Secretary believes speeding up how they buy things is the most important job right now.
The current defense budget is increasing but is still less than the amount some experts recommend.
Defence Secretary says budget not a constraint, but procurement speed is.
Experts suggest doubling defense budget to 4% of GDP; current budget is less than 2.5% of GDP.
The Defence Secretary stated the ministry fully utilized the revised capital outlay for defense modernization this year.
Ministry signed contracts worth Rs 2 lakh crore this year, double the previous highest.
Rs 1.8 lakh crore (26.43%) of the total budget will go to capital outlay for FY2025-26.
- Who
- Defence Secretary Rajesh Kumar Singh, military experts, and the Ministry of Defence.
- What
- Discussion on the Indian defence budget and procurement.
- When
- Ongoing; refers to FY2025-26 budget.
- Where
- India
- Why
- To discuss the adequacy of the defense budget and the pace of defense procurement.
Defense Budget Constraints
Procurement Speed
Budget Allocation
Defense Budget Constraints
Some experts believe the defense budget should be increased to 4% of GDP to maintain strategic superiority.
Procurement Speed
The Defence Secretary asserts that the budget is not a constraint, but rather the speed of procurement.
- FY2025-26 Defense Budget
- Rs 6.81 lakh crore
- Percentage increase from previous year
- 9.53%
- Capital Outlay Allocation (FY2025-26)
- Rs 1.8 lakh crore (26.43%)
- Revenue Expenditure Allocation (FY2025-26)
- Rs 3.11 lakh crore (45.76%)
- Pension Allocation (FY2025-26)
- Rs 1.6 lakh crore
- Contracts signed this year
- Rs 2 lakh crore
- Previous highest contract value
- Rs 1 lakh crore (2023-24)
