India’s Defence Budget- Third Largest Defence Budget in the World

The Defence Budget Of India

The defence budget plays a very important role in any defence force. The defence budget finances employee salaries and training costs, maintenance of equipment and facilities. It also supports new or ongoing operations, and development and procurement of new technologies, weapons, equipment, and vehicles. India’s Defence Budget is now ranking at third position throughout the world only after China and the USA. In this article you will know about the defence Budget of India.

What is the Defence Budget of India ?

The military budget or defence budget of India is the portion of the overall budget of the Union budget of India that is allocated for the funding of the Indian Armed Forces. The Indian Army accounts for more than half of the total defence budget of India. Most of the expenditure goes to the maintenance of cantonments, salaries and pensions, instead of critical arms and ammunition. 


India’s defence budget includes allocation for the three defence services, Indian army, Indian navy and Indian air force. It also includes allocation for the ordnance factories, research and development, and capital outlay. Additionally there are civil defence expenditures such as pensions. Unofficial expenditure includes expenses for four of the six Central Armed Police Forces responsible for border security.

Defence Budget 2022-23

Defence Budget 2022-23

The Union Budget 2022-23 envisages a total outlay of Rs 39.45 lakh crore. Out of this, the Ministry of Defence has been allocated a total budget of Rs 5.25 lakh crore, which is 13.31% of the total budget. This includes an amount of Rs 1.19 lakh crore for Defence Pensions. The total Defence Budget represents an enhancement of Rs 46,970 crore (9.82%) over Budget Estimates 2021-22.

The Government has placed modernisation and infrastructure development of the Armed Forces at the centre stage of the National Security and Defence Planning process. The total allocation under Capital Outlay of the Defence Services has been increased from Rs 86,740 crore in 2013-14 to 1.52 lakh crore in 2022-23. There is an enhancement of 76% over a period of nine years. Further, during this period, the total Defence Budget including Defence Pensions has increased by 107.29%, from Rs 2.53 lakh crore in 2013-14 to Rs 5.25 lakh crore in 2022-23.

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