Indian defense budget 2016

Military budget of India
The first full budget of the Modi government presented to Parliament on February 28, 2015 set aside Rs. 2,46,727 crore for defence, which amounts to a 7.7 per cent increase over the previous year’s allocation.

The defense allocation is exclusive of another Rs. 62,852.6 crore provided to the Ministry of Defense MoD) under the heads of Defense Pensions (Rs. 54,500 crore) and Civil Expenditure of MoD (Rs. 8,852.6 crore), both of which do not form part of India’s official defense budget.

The latest defense allocation comes in the wake of the Modi government’s all-out push for the ‘Make in India’ initiative, the ‘heart’ of which, as noted by the Prime Minister himself at the Aero India 2015, is the defense industry.

Like in the past, the Army continues to be biggest stakeholder in the defense budget. With an approximate allocation of Rs. 1,30,874 crore, it accounts for 53 per cent of the total defense budget in 2015-16.
The Air Force comes a distant second with an allocation of Rs. 56,658 crore, followed by the Navy (Rs. 40,529 crore), Defense Research and Development Organisation (Rs. 14,358 crore) and Ordnance Factories (Rs. 3,644 crore).

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