Allocation for India’s defence budget may see a nominal increase
Allocation for India’s defence budget may see a nominal increase
Feb 1, 2022
Credit: Canva
India awaits union budget of 2022
All eyes are going to be on Finance Minister Nirmala Sitharaman as she announced the Union Budget for the year 2022 later today (February 1) at 11:00 a.m.
Credit: BCCL
Defence does not have high expectation
The defence sector, however, does not anticipate any major bump up in the budget allocation.
Credit: Canva
We may notice usual bump up in defence budget
At least two national security analysts Business Insider spoke to highlighted that there will be a usual nominal increase in the defence budget and that it may continue to be a small percentage of the gross domestic product (GDP).
Credit: Canva
India’s defence budget has been lower than recommended in last 5 years
India’s defence budget has remained consistent roughly at 2 percent of the GDP in the last five years, even though the recommended share is 3 percent.
Credit: BI India
Maritime may be new priority for Indian defence
Experts like Sameer Patil, senior fellow at think tank Observer Research Foundation (ORF), believe that the priorities of India's defence ministry are likely to change as China becomes a maritime superpower.
Credit: Sameer Patil
India is confident about securing its land borders
Patil notes that India is pretty confident in terms of handling the threats coming from China on the land borders, but they still need to upskill their naval force and maritime defence.
Credit: Canva
Anti-submarine warfare, drones will see heavy investment
Therefore, the Indian armed forces may want to invest in building anti-submarine warfare capabilities, purchasing more maritime surveillance drones and building a fleet of 300 for the Indian navy.
Credit: Canva
India is looking to build up its fleet
India currently has 150 ships and submarines, and the coast guard fleet of 130 vessels. As per Elara Capital’s report published in October 2021, each of these are expected to grow to 200 vessels in the next five years.
Credit: Canva
Naval budget is likely to be ₹4.5 lakh crore in five years
Indian Navy’s capital budget is expected to be ₹4.5 lakh crore by 2027, as per government of India’s undertaking Garden Reach Shipbuilders & Engineers (GRSE).
Credit: BI India