India boosted defence spending by 12 percent in 2014-15 over the previous year in the budget. Finance Minister Arun Jaitley set the military budget at 2.29 trillion Indian rupees ($38.35 billion) for 2014-15, 50 billion rupees more than what the previous government agreed in an interim budget earlier this year. It further opened the domestic weapons industry to foreign investment to help rebuild the military and narrow the gap with China.India has been the world’s top arms buyer for the last three years, trying to replace an ageing Soviet-era military with modern weapons as a deterrent to a rising China, with which it fought a war more than half a century ago.
Basic customs duty on ships imported for breaking up has been rationalised to 2.5 percent.
Basic customs duty on semi-processed, processed diamonds is being rationalised at 2.5 percent.
To encourage manufacturing and export of garments, the Finance Minister has given concession on import of trimmings and other articles.
In a thrust for the renewable energy sector, Jaitley has provided concessions for the solar power and wind power units.
Compressed bio-gas proposals also get a concession from the Finance Minister.
The Finance Minister has announced a variety of concessions for electronic equipment being imported. TVs are also set to become cheaper, with the Finance Minister cutting custom duties on small LCD panels below 19 inches and on cathode ray tubes.