India’s defence budget 2020 increased 9% but not enough to meet the defence needs
- ₹4.71 lakh crore allocated to defence in Union Budget 2020.
- ₹1.33 lakh crore allocated to defence pensions.
- According to World Bank, India is the fourth largest military spending nation.
The Union Budget 2020-2021 allocated ₹4,71,378 crore towards defence expenditure this year. Despite the “marginal” increase, resources aren’t nearly enough to meet the department’s requirements.
Last year’s budget made the headline for being the lowest since 1962, which was when India went to war against China.
A lion’s share of the budget has been allocated to the Army, followed by the Navy and the Airforce. The majority goes towards paying the pensions and salaries of personnel.
Pensions, alone, have doubled over the last five years. It’s gone from ₹60,000 crore to ₹1,33,825 crore. It’s not only the magnitude of the allocation that’s a cause of concern but the fact that it’s a recurring future impact.
This leaves marginal amounts left over for the Ministry of Defence to upgrade its equipment. This is particularly harrowing for the Air Force and Navy, which are more tech-intensive than the Army.
The issue of modernisation
Most of this year’s defence expenditure will go towards acquiring the new Tejas Mk 1A aircraft. Although indigenously developed, the aircraft took over three decades to reach fruition and match the capabilities of the MiG-21 aircraft.
Even so, its capabilities pale in comparison to other fighter jets around the world. Nonetheless, India plans to order 83 Tejas Mk1A jets, according to ICICI securities expectations.
Acquiring new equipment has been a pain point for the defence sector for a while. According to Sameer Patil, a fellow in international security studies with Gateway House — a think tank based out of Mumbai — the Armed Forces currently prefer to import rather than buy homegrown tech.
The technology produced in India isn’t up to the mark and better versions of it are available off-the-shelf from foreign suppliers.
AdvertisementPatil explains that India’s military research branch — the
Despite its shortcomings, India is the fourth largest military spending the world according to the World Bank.
SEE ALSO: Nirmala Sitharaman ditches Tamil to recite a Kashmiri poem - comparing India to a Dal Lake lotus
Popular on BI
- Elon Musk said Twitter will start showing users how many people have seen their tweets, and got Jack Dorsey's approval
- Elon Musk reportedly told workers at his brain-chip startup to imagine they had bombs strapped to their heads to make them work faster
- A janitor laid off at Twitter's headquarters said one of Elon Musk's team members told him he'd be replaced by robots
- Adani Transmission to Deepak Nitrate, here are the fastest wealth creators
- Best mattress in India
- Rupee gains 10 paise to close at 82.28 against US dollar
- Sensex, Nifty50 log declines to close the week in red – IT, PSU banks and energy stocks drag
- Over 1.83 lakh Indians renounced their citizenship till October says external affairs ministry
- Realme10 Pro Plus Mobile
- Gig jobs
- Sula Vineyards IPO
- Whatsapp tips
- International Roaming Plans
- RBI hikes repo rate
- Larget Employers
- Highest Revenue companies
- New Cars in December 2022
- Best Companies for Work
- India's Richest People
- Most Valuable Companies
- Most searched movies
- Adani Enterprises
- Top 10 Colleges in India
- Top 10 Airlines in World