NEW DELHI — India has raised its defense budget for the next fiscal year, contrary to expectations that there would be a reduction in its military spending due to economic strains. The defense allocation for the India’s fiscal year beginning April 1 is being increased by around 5% to 2.03 trillion rupees ($38 billion), from the originally allocated 1.93 trillion rupees for the year ending March 31.
India’s burgeoning maintenance, repair and overhaul (MRO) industry received a much-needed boost after the government announced tax concessions on the import of spare parts and testing equipment. The government also extended the period for required installation of the parts and equipment to one year from three months. “The MRO sector is at a nascent stage. Encouraging the industry will generate employment besides other benefits,” Finance Minister P. Chidambaram said in a budget presentation to parliament.
