- Union Budget has allocated Rs 3.18 lakh crore for defence.The allocation is estimated to be at around 1.6% of the GDP which experts have said is the lowest since the 1962 war with China.
- The defence officials has said that the capital expenditure allocated for the Navy and the Indian Air Force(IAF) does not meet their committed liabilities.
- Committed liabilities are payments for deals already signed and typically spread over several years.The remaining part of the capital head goes for new procurements.
- The industry is also disappointed as the expected easing of Foreign Direct Investment (FDI) in the defence sector has also been excluded.
- However,the only relief the services were given was waiver of basic customs duty for import of equipment not manufactured in the country.
1 min read