India on Monday steeply hiked its defence Budget by 11 per cent, pegging the 2011-12 allocation at Rs164,415 crore (nearly $36 billion), to fuel the rapid modernisation of the Army, Navy and the Air Force.
Finance minister Pranab Mukherjee, who presented the Budget in the Lok Sabha, also increased the capital expenditure to Rs 69,199 crore.
"In the Budget for 2011-12, a provision of Rs 164,415 crore has been made for the defence services, which includes Rs 69,199 crore for capital expenditure," Mr Mukherjee said.
"Needless to say, any further requirement for the country's defence would be made," he said, in a promise that will bring smiles to the defence ministry mandarins, who hope to finalise several important arms deals such as the $10.4-billion contract for 126 combat planes in the next fiscal.