NEW DELHI – Indian Finance Minister Arun Jaitley on Thursday presented theBudget 2018 wherein he announced that two defence industrial productionCorridor would be developed in the country.

Following the announcement, Union Defence Minister Nirmala Sitharamanhailed the move and divulged details on the road ahead.

The Defence Minister said that of the two defence corridors announced bythe Finance Minister, the first one would be built connecting Chennai inTamil Nadu and Bengaluru in Karnataka. She further said that anannouncement on the second corridor would be made soon.

Making the announcement during his Budget speech in Parliament, Jaitley hadsaid that the government would develop two defence industrial productioncorridors and bring out an industry-friendly military production policy topromote the domestic defence industry.

In the last full budget of the Narendra Modi government, Rs 2.95 lakh crorewas on Thursday set aside for the defence budget for the next fiscal whichis an increase of 7.81 percent over last year’s Rs 2.74 lakh crore.

Out of the total allocation, the capital outlay for the three defenceservices for the purchase of new weapons, aircraft, warships and othermilitary hardware has been pegged at Rs 99,947 crore.

The outlay for defence budget amounted to 12.10 percent of the total budgetof Rs 24,42,213 crore for 2018-19.

Compared to the revised estimate of Rs 2.79 lakh crore for the defencebudget in 2017-18, the increase in allocation has been 5.91 percent butcompared to the budget outlay of Rs 2.74 lakh crore, the hike is 7.81percent.

Out of Rs 2,95,511 crore allocated for the financial year 2018-19, Rs99,947 crore has been pegged for capital outlay which includes expenditureon modernisation of the three forces, according to the defence ministry.

The revenue expenditure, which covers payment of salary, maintenance ofestablishments and other related expenditure, has been pegged at Rs1,95,947 crore.