Indian defence capital budget rose a mere 6.8% YoY (FY24BE vis-à-vis FY23BE) to Rs1.62trn. Key points: 1) Capital budget rose at its slowest pace in the past six years; 2) capital budget as a %age of total defence budget is 28.5%; and 3) among broad categories, budget for aircraft, aero engine and naval fleet has been impacted the most while that for other equipment is at the highest-ever level of Rs670bn.