Increased government spending on infrastructure and modernisation need of the hour

Capital expenditure by central and state government agencies on homeland security presents potential of USD 2.73 billion for the year 2018-2019, noted a just-concluded ASSOCHAM-KPMG joint study. Much of this potential is created due to police modernisation, critical infrastructure protection and counter terrorism efforts of the government, according to the study titled, 'Modernisation of Homeland Security: Staying Safe in a Smart World,' jointly conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM) and professional services firm KPMG. Further, the study also stated that increased government spending on infrastructure development and modernisation is the need of the hour as state and central police forces are facing multiple challenges.

Some opportunities are also present in the private sector and export markets. In 2018, the budgetary allocation to Ministry of Home Affairs (MHA) was around $15.8 bn, a growth of 10 per cent over the previous year. Around eight per cent ($1.3 bn) of the total budget has been allocated towards modernisation of homeland security forces and up gradation of current infrastructure. The study also highlighted that while total budget earmarked by state governments for modernization of state police forces, and up gradation of state police infrastructure is $132 million (mn), an additional provision for security related expenditure (SRE) of $332 mn has been made for left wing extremism (LWE) affected areas.

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