ADVERTISEMENT

Budget 2023 & Defence - Capital Outlay Allocation Comes As A Dampener: ICICI Securities

Indian defence capital budget rose a mere 6.8% YoY (FY24BE vis-a-vis FY23BE) to Rs 1.62 trillion.

<div class="paragraphs"><p>Defence Expo 2022. (Photo: Vijay Sartape /Source:&nbsp; BQ Prime)</p></div>
Defence Expo 2022. (Photo: Vijay Sartape /Source:  BQ Prime)

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. 

ICICI Securities Report

Indian defence capital budget rose a mere 6.8% YoY (FY24BE vis-a-vis FY23BE) to Rs 1.62 trillion. Key points:

  1. Capital budget rose at its slowest pace in the past six years;

  2. capital budget as a %age of total defence budget is 28.5%; and

  3. among broad categories, budget for aircraft, aero engine and naval fleet has been impacted the most while that for other equipment is at the highest-ever level of Rs 670 billion.

On the positive front, research and development budget has been raised 7.3% YoY to Rs 129 billion- the highest-ever level. Allocation for Indian Space Research Organisation has also been lowered with budget and capex on space research (FY24BE vis-a-vis FY23BE) down 8% YoY and 15% YoY, respectively.

In absolute terms, FY24 space budget and capex on research is at the similar level as FY20.

Click on the attachment to read the full report:

ICICI Securities Defence Budget Feb23.pdf

More Research Reports On Budget 2023 Reviews, Highlights, Impacts

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.