India's defence budget has remained fairly static for the past five years
- India’s budget allocation for
defencehas remained fairly static for the past five years.
- All three branches of defence— Army, Navy and Air Force — require upgrades but the budget for modernisation falls short.
- Majority of the
defence budgetis spent on salaries and pensions of defence personnel.
At first glance, it may look like the Indian government has been allocating an increasing amount of funds towards defence.
While the absolute amount has been increasing, defence expenditure has actually slowed down as a proportion of the GDP. Last year’s budget hit the spotlight for being the lowest since 1962 - which was when India went to war against China.
In 2020, a report by ICICI Securities predicts that the allocation is unlikely to change.
This paints a worrying picture when you see that nearly 60% of the planned budget goes towards pension and services. Last year, that figure jumped to 71% — leaving a mere 3% for civil operations.
Pensions, alone, have doubled over the past five years from around ₹60,000 crore to ₹112,080 crore. The point of deliberation isn’t just their magnitude, but also their recurring future impact.
Currently, all three branches of India’s Ministry of Defence — the Army, the Navy and the Air Force — require upgrades. However, their modernisation budget falls short of actual requirements by a wide margin.
AdvertisementNonetheless, India is the fourth largest military spender in the world according to the World Bank.
India’s ready to spend on defence — just not on modernisation
Arms spending in Asia continues as India shells out another ₹46 billion
Indian Army fears that foreign intelligence may be using WhatsApp to profile its officers
Popular on BI
- Toyam Sports Limited signed up as title sponsor for India tour of Bangladesh
- Deadly Covid variants still transmissible between species, finds study
- Australia researchers find poor sleep may be risk factor for Type 2 diabetes
- Max Financial Services: Company worth ₹24,000 crore running with only 12 employees
- NPCI defers UPI market cap rules till Dec 31, 2024
- Dharmaj Crop IPO
- Reliance Jio
- Digital Nomad Visa
- Whatsapp tips
- Air India crew guidelines
- Mukesh Ambani
- Larget Employers
- Highest Revenue companies
- New Cars in December 2022
- Best Companies for Work
- India's Richest People
- Maruti Suzuki
- Top Valuable unlisted Company
- Tata Tiago cng vs Alto k10 cng
- Top 10 Colleges in India
- Top 10 Airlines in World