An increase of 7.2 per cent, allocating a whopping Rs 89,000 crore for the fiscal year 2006-07.
Of this, Rs 37,458 crore or 42 per cent of the total outlay has been earmarked for new arms purchases.
Allocation for defence increased from Rs 83,000 crore in the current fiscal in view of the enhanced expenditure on the modernisation of the armed forces.
India is in the market for a wide array of sophisticated hardware, including 126 combat jets and 80 helicopters, to modernise the ageing military arsenal, and some deals are expected to be finalised in the next fiscal.
