'Landmark allocation', will boost Atmanirbhar Bharat initiative: Industry leaders on defence budget

New Delhi: Industry leaders on Tuesday welcomed the defence outlay of Rs 6.22 lakh crore in the Union Budget, with some calling it a "landmark allocation" while others saying that initiatives outlined in the budget will collectively signal a "robust blueprint" for India's progressive and inclusive development.

Ashish Saraf, vice president and country director, Thales in India, applauded the government and Union Finance Minister Nirmala Sitharaman for the "landmark allocation" for defence in the budget for 2024-25, saying it "reflects a strong commitment to national security and technological advancement".

The allocation of Rs 6,21,940.85 crore, representing 12.9 per cent of the total budget, is a "testament to the government's focus on strengthening our defence capabilities", he was quoted as saying in a statement.

The capital outlay of Rs 1,72,000 crore will enhance the capabilities of the Indian armed forces by adding new advanced technology equipment, he said.

"Furthermore, the earmarking of Rs 1,05,518.43 crore for domestic capital procurement is a major boost to the 'Atmanirbhar Bharat' initiative, promoting self-reliance in defence manufacturing and enhancing defence exports. We are also pleased to see the allocation of Rs 518 crore to the iDEX scheme, which will foster innovation and support startups, MSMEs, and innovators in the defence sector," Saraf added.

These initiatives not only reinforce the 'Make in India' vision but also align with the broader goal of 'Viksit Bharat 2047', positioning India as a global leader in defence technology and innovation, he said.

"At Thales, we are committed to contributing to these transformative efforts, leveraging our global expertise to support India's journey towards self-reliance and excellence in defence," he said.

The government on Tuesday set aside Rs 6.22 lakh crore as defence outlay for 2024-25. A total of Rs 1.72 lakh crore was allocated to the military for capital expenditure that largely includes purchasing new weapons, aircraft, warships and other military hardware.

Baba Kalyani, chairman and MD, Bharat Forge Ltd, termed it an "excellent budget" that lays strong emphasis on strengthening the fundamental pillars which would propel the Indian economy towards a 'Viksit Bharat'.

"While the budget allocation for defence industry is on expected lines, creation of the Critical Minerals Mission and articulation of India's strategy on Small Modular Nuclear Reactors will go a long way in bolstering the 'Aatmanirbhar Bharat' agenda.

"We are all greatly inspired by the vision for a 'Viksit Bharat' by 2047 and I am confident that these initiatives collectively signal a robust blueprint for India's progressive, integrated and inclusive development," he was quoted as saying in a statement.

Capt Nikunj Parashar, co-founder and CEO of Sagar Defence Engineering Pvt Ltd, said Finance Minister Sitharaman has underscored a "resolute commitment" to bolstering India’s domestic manufacturing prowess, paving the way for the nation to emerge as a "global manufacturing hub".

As the "visionary budget" marks a significant stride towards realising the aspirations for a developed and self-reliant India under the vision of 'Viksit Bharat 2047', "we look forward to more schemes and initiatives" that may propel the defence manufacturing ecosystem, he said in a statement.

"The government's steadfast dedication to fostering industrial growth and innovation stands poised to catalyse economic resurgence and job creation on an unprecedented scale. We look forward to this year's agenda reinforcing our economic resilience while setting a robust foundation for sustainable progress and prosperity in 'Amrit Kaal'," Parashar added.

Union Budget 2024 LIVE | Making a record for any Finance Minister, Nirmala Sitharaman presented her 7th consecutive Union Budget on July 23, 2024 under the Modi 3.0 government. This Budget brought tax relief for the middle class, while focusing on jobs through skilling, incentivising employers. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.