Source : IgMp Bureau
The Interim Budget for 2024, spearheaded by Finance Minister Smt. Nirmala Sitharaman, witnesses a significant boost in defense expenditure, reaching an impressive Rs 6.2 trillion. This allocation marks a noteworthy increase of Rs 27 thousand crore, translating to a 4.5% rise from the preceding year’s budget.
Three Crucial Components of the Defense Budget
There are 3 parts of defense budget. Revenue, Capital Expenditure and Pension…
1. Revenue:
Under the revenue segment, designated for distributing salaries, the government allocates a substantial Rs 2.82 trillion for the three armed forces. This represents a notable increase of Rs 12,652 crore from the previous fiscal year’s budget of Rs 2.77 trillion.
2. Capital Expenditure:
The capital expenditure allocation, dedicated to the purchase of new weapons and essential equipment, sees a commendable Rs 1.62 trillion allocation. This reflects a modest increase of Rs 10,231 crore compared to the previous year’s budget of Rs 1.52 trillion. The Air Force claims the lion’s share with Rs 57 thousand crore, followed by the Navy with Rs 52 thousand crore and the Army with Rs 37 thousand crore.
3. Pension Provision:
In the realm of pensions, the government earmarks Rs 1.41 trillion for retired military personnel, signaling a positive increment of Rs 3 thousand crore from the previous fiscal year. The Army receives the highest share with Rs 127,636 crore, followed by the Air Force with Rs 13,813 crore and the Navy with Rs 7,731 crore.
Defense Budget Trends: A Closer Look
Over the last three years, India’s defense budget has experienced a decline from 2.4% to 1.97% of the GDP. Retired Air Vice Marshal Manohar Bahadur notes that this decrease is substantial, impacting the country’s defense capabilities.
Research and Development Imperative
Despite the critical nature of defense, India’s investment in research and development lags behind. The Global Innovation Index 2022 reveals that India allocates only 0.7% of its GDP to research and development, positioning it at 53rd globally. The parliamentary committee emphasizes the need to double the defense research budget to ensure self-reliance and global leadership.
Global Lessons and Indian Preparedness
Current global conflicts underscore the importance of self-sufficiency in defense. India’s ability to independently decide its security measures is vital, especially in light of prolonged conflicts in Gaza and Europe. According to Air Vice Marshal Manohar Bahadur, India’s preparedness is a cause for concern, with reports suggesting a capability to sustain war for only 30-60 days.
Deficiency in Recent Defense Budgets
Examining the past defense budgets reveals a notable shortfall in allocating funds for weapon procurement. While there was a 6.5% increase in the allocation of arms in 2022, the focus shifted towards salaries. Notably, there was a 12% increase in weapon procurement in 2022-23 and a substantial 19% rise in 2021-22.
India’s Defense Position: Successes and Shortcomings
Successes: Expanding Global Presence
India’s defense exports have surged tenfold since 2016, with the country supplying weapons to 85 nations. In 2023, a list of 928 domestically produced weapons was compiled. Key achievements include the approval for 26 Rafale aircraft for the Navy and a deal with the U.S. for 31 MQ-9B Reaper drones. Collaborations with American entities highlight the commitment to enhancing India’s defense capabilities.
Shortcomings: Continued Dependency on Arms Imports
Despite successes, India remains the world’s leading arms importer, accounting for 11% of global purchases from 2018 to 2022. The Indian Armed Forces face challenges, with the Air Force requiring 114 fighter jets, the Navy falling short of its target with 132 warships against the needed 175, and the Army lacking 11,266 young officers.
In conclusion, while India has made strides in defense exports and collaborations, challenges persist, necessitating a strategic and comprehensive approach to fortify the nation’s security and global standing.
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