Budget 2024: Ministry of Defence given Rs 6.2 lakh crore, to be driven by DeepTech

Finance Minister Nirmala Sitharaman, while presenting the Interim Budget in Parliament on Thursday, ahead of the crucial Lok Sabha elections 2024, revealed that India’s Ministry of Defence has been allocated Rs 6.2 lakh crore. This marks a 4.3 per cent increase from last year’s Defence Budget, which was Rs 5.94 crores. Like last year, the Ministry of Defence’s budget again constitutes a major chunk of India’s interim budget. This constitutes about 13.04 per cent of the total Union Budget. What stands out in this year’s defence budget, is that Finance Minister Sitharaman announced a new scheme, which will be launched for strengthening DeepTech technologies for defence purposes and expediting ‘atmanirbharta’ of our defence forces.

The announcement regarding a Rs one lakh crore corpus for Deep Tech for long-term loan to tech-savvy youth/companies and the tax advantage to the start-ups will give further impetus to innovation in the defence sector: Ministry of Defence

— ANI (@ANI) February 1, 2024

The Minsitry of Defence, gave a brief breakdown of how exactly the funds were allocated. About Rs 1.72 lakh crore or roughly 27 per cent of total defence budget was allocated for capital acquisition. Budget to Armed Forces for revenue expenditure (Other than Salary) stands at Rs 92,088 crore. Budgetary allocation for Defence pensions increased to Rs 1.41 lakh crore. Rs 6,500 crore was earmarked to strengthen border infrastructure; Rs 7,651.80 crore allocated to Indian Coast Guard; Budgetary allocation to DRDO enhanced to Rs 23,855 crore, the Ministry of Defence said in a tweet.

Rs 1.72 lakh crore - 27.67% of total defence budget - allocated for capital acquisition; Budget to Armed Forces for revenue expenditure (Other than Salary) stands at Rs 92,088 crore. Budgetary allocation for Defence pensions increased to Rs 1.41 lakh crore. Rs 6,500 crore…

— ANI (@ANI) February 1, 2024

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What are DeepTech technologies? Deeptech, or DeepTech refers to technologies that are based on cutting-edge scientific and engineering advancements, often involving substantial AI, ML and other groundbreaking innovations. It encompasses a wide range of fields such as artificial intelligence, machine learning, robotics, nanotechnology, biotechnology, and quantum computing. What sets DeepTech apart is its focus on solving complex problems and pushing the boundaries of what is currently possible. One key characteristic of DeepTech is its reliance on deep scientific principles and intricate technical knowledge. These technologies often involve substantial research and development efforts, requiring multidisciplinary expertise. DeepTech innovations have the potential to transform industries, enhance efficiency, and address challenges that were once considered insurmountable. Why India needs DeepTech in Defence Considering that the modern combat zone has evolved in ways people couldn’t have imagined a few years, ago, Investors and entrepreneurs are drawn to Deeptech due to its long-term impact and the possibility of creating disruptive solutions. More and more countries are using AI and ML to plan their logistics in military operations. Some, are even using AI-powered missiles to hit targets, while others are in the process of developing AI-powered fighter jets. Furthermore, robotics are becoming an increasing part of militaries all over the world. Considering that some of the world’s most technologically advanced militaries have already been investing in DeepTech technologies, it was only a matter of time before India’s defence sector too had a dedicated arm working on something like this. As was expected of the budget this year, the government is maintaining its increasing emphasis on digitization, modernization, and promoting self-sufficiency. The increase in budget is in line with the contractual commitments and the allocation of resources for modernization efforts that was expected. Additionally, the increase in budget is expected to cover salary increments, pension funds, and strategic requirements, along with fostering strategic collaborations with domestic industries.