Higher budgetary allocations to defence a signal of intent from government

Hike of 20.62% shows that government expects several large acquisitions to be initiated in FY18

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Table 1: Budget allocations for defence

Kabir Bogra Tushaar Talwar

Last Updated : Feb 17 2017 | 12:11 PM IST

Defence manufacturing has been a priority sector for the government in the last three years. Due to the continued policy reform in industrial licensing regime, the FDI Policy and labour laws, there were no specific expectations from the union budget 2017 -2018. The expectations in the form of exemptions, concessions etc to incentivise defence manufacturing were muted considering the proposed implementation of GST later in the year.

Therefore, the most relevant purpose of the budget for the sector was to track the expenditure allocated to the forces to assess what it may indicate over the course of the financial year. The

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