The government can increase the allocation of the defense sector. The reason for this is that the threat to the border for India remains constant. India’s defense preparation should be such that it can achieve conqueror on the enemy if needed. After the formation of Prime Minister Narendra Modi’s government at the Center, the government’s focus on defense has increased. Efforts are on to improve infrastructure on the border with China. The government has increased the focus on production of defense equipment in the country itself. The government also wants to increase the export of defense equipment.
6.22 lakh crore allocation in FY
Finance Minister Nirmala Sitharaman (Nirmala sitharaman) Union budget last year (Union Budget) In the defense sector, an allocation of Rs 6.22 lakh crore was done. This was 4.79 percent more than an allocation of a year ago. Defense experts say that this time the government can increase the allocation of the defense sector by 5-10 percent in the budget. Defense experts say that the government needs to increase the expenditure on depression in view of the challenges on the border. The expenditure on defense should be up to 3 % of GDP, which is now 1.91 percent.
Target of export of Rs 35,000 crore
India’s Defense Export FY24 reached 21,083 crore. It is 31 times compared to exports of a decade ago. The government has set a target of Rs 35,000 crore for defense exports by 2025. Many defense equipment of India has received good response in the global market. Many countries have shown great interest in Pinaka rocket system and BrahMos missile system. If the government announces measures to produce defense equipment and increase exports in the union budget, then it may speed up the stocks of defense companies.
Also read: Union Budget FY2025: Married couple should get a joint tax return filing permission, know its benefits
These stocks may get wings
Stocks of HAL, Bharat Dynamic, Paras Defense, Bharat Electronics, Mtar Technologies may accelerate after the budget. HAL shares fell 1.89 per cent to close at Rs 3,848 on 24 January. In the last one year, this stock has given 32 percent returns. Bharat Dynamics shares fell 4.31 per cent to close at Rs 1,235 on 24 January. This stock has given 48 percent returns in the last one year. The stock of Paras Defense closed at 0.38 per cent on 24 January. This stock has given 37 percent returns in the last one year. Bharat Electronics shares closed at 1.33 per cent on 24 January. In the last one year, this stock has given 42 percent returns.
