Modernisation

Capital expenditure covers procurement of weapons, aircraft, ships, and equipment (not salaries or operations). Revenue expenditure is roughly 2× capital. Capital budget grew steadily from 2004; acceleration post-2020 driven by Atmanirbhar Bharat push. India's defence budget as % of GDP has stayed near 2%. Import dependency remains ~60% by value despite indigenisation drives. Delays in large procurement programmes (fighter jets, submarines) are a recurring concern.