Key highlights include:

• Capital Outlay and Domestic Procurement: A substantial 75% of the modernization budget (₹105,518 crore) is earmarked for domestic procurement, highlighting a strong focus on indigenization. This capital allocation represents 27.66% of the total defence budget aimed at acquiring new equipment.
• Operational Preparedness: ₹92,088 crore is set aside to ensure the operational readiness of the armed forces, which includes maintenance of military platforms and ammunition procurement. This marks a 48% increase compared to the previous year.
• Border Infrastructure: ₹6,500 crore is allocated to the Border Roads Organisation to enhance border infrastructure, particularly in light of ongoing tensions along the Line of Actual Control with China.
• R&D Funding: The Defence Research and Development Organisation (DRDO) received ₹23,855 crore, constituting just under 4% of the budget. While this allocation indicates the government's focus on defence R&D, there are concerns about its sufficiency for achieving significant technological advancements.
• Challenges: Despite the increase, defence spending as a percentage of GDP has decreased to 1.9%, which is below the recommended target of 3% set by the Parliamentary Standing Committee on Defence. This decline raises concerns regarding the long-term modernization of India’s defence forces.

Overall, the budget reflects a balanced approach that addresses immediate military needs while pursuing long-term goals of self-reliance in defence production. However, challenges remain in ensuring adequate funding for modernization and research and development initiatives.