Editor’s Note
In this opinion piece, the author argues that while India’s defence budget shows progress, it remains insufficient to address critical security concerns. They emphasize the need for increased funding, better spending efficiency, and strategic reforms to safeguard national security amid growing global volatility. Bold and decisive actions by the government are essential to bridge the existing gaps.
An Insecure World
Over the past decade, the world has become increasingly insecure, with conflicts raging across continents showing no signs of abating. Emerging technologies in artificial intelligence, electronic surveillance, precision strikes, drone warfare, lethal munitions, cyber warfare, and space are exposing the world to immense risk. Meanwhile, intensifying rivalries between major powers are further escalating global instability.
India is no exception to these turbulent times and finds itself in a highly vulnerable position, surrounded by hostile or unstable neighbours. Several internal fault lines emerging from religious, caste-based, ethnic, and ideological divisions further complicate the national security environment. The recent developments in Bangladesh are a stark reminder that instability can emerge suddenly and without warning.
India, therefore, needs a strong security architecture that can address both external threats and internal vulnerabilities. The defence forces are the strong pillars of national security, and they must be fully prepared for any contingency. Modernization and capability building are no longer a luxury in today’s high-tech warfare environment; they have become an operational necessity. Modernization, however, comes at a very heavy financial cost.
This year, the Finance Minister allocated ₹6.81 lakh crore to the defence budget, marking a 6% increase over the previous year’s revised estimates. This amounts to 1.9% of the gross domestic product (GDP) and roughly 13% of the total budget. Of this, ₹1.8 lakh crore has been earmarked for capital expenditure to address existing equipment deficiencies and modernization needs.
Correcting the Deficiencies
While the increased defence budget appears reasonable at first glance, a closer examination reveals critical deficiencies that require immediate attention to meet the actual needs of the armed forces.
Indian Air Force faces an immediate need for airborne warning and control systems (AWACS), combat aircraft, mid-air refuellers, and upgrading its ageing transport fleet—a requirement pegged at lakhs of crores. The shortage of combat aircraft is glaringly evident, with the IAF operating only 32 squadrons against the requisite 42. The sheer cost of modern fighter jets adds another dimension to the problem, which can be seen in the ₹63,000 crore order for a mere 26 naval variant Rafale fighters.
The Indian Navy plans to expand its fleet from the current 130 medium to large ships to around 200 by 2035. It has placed orders for 66 ships, 50 of which will be built in Indian shipyards and two in Russia.
The Indian Army, the most manpower-intensive service, needs urgent modernization in small arms, tanks, infantry combat vehicles, artillery, missiles, electronic warfare, and surveillance equipment.
India-China Infrastructure Gap
One of India’s biggest strategic and financial challenges lies along the India-China border, where the gap in infrastructure is starkly visible. China enjoys a clear edge in roads, telecommunications, and hardened logistics installations that are critical to sustaining high-intensity military campaigns in the future. It is a priority area requiring increased funding to close the gap. The current allotment of ₹7146 crore to the border roads organisation for the purpose will not suffice.
The Need for a Higher Allocation
As per accepted international norms, 2.5 per cent of the GDP is considered reasonable for defence budget allocation. Therefore, the current Government’s sub-1.9 per cent allocation since its inception is not enough to meet the country’s security requirements. With this allotment, the defence forces will not be able to meet the modernisation objectives.
It is understood that there are equally compelling requirements for government expenditure in other sectors, such as health, education, infrastructure and housing. However, the entire defence budget is not a dead expenditure as it has the potential to boost the domestic defence industry and promote exports. ₹1.11 lakh crore from the capital defence budget will be utilised for procurements from the domestic industry, including 28,000 crores from the private sector. This increased capital outlay for procurement from domestic industry can be transformational and drive self-reliance, generating employment and creating business opportunities.
Optimizing Defence Expenditure
In addition to earmarking more funds, the government will have to take steps to ensure that the defence budget is utilised judiciously. The revenue expenditure of Rs 4,88,822 crore, including Rs 1,60,795 crore for pensions, is definitely on the higher side. The government and the forces need to examine ways to lower costs by:
Rationalizing manpower, which includes a large number of civilian employees being paid from the defence budget. The Agnipath, if implemented with due care while addressing operational concerns, could contribute to a leaner, more cost-effective force.
Integration of training, administration, and logistics across the three services to reduce the expenditure on numerous static establishments.
Enhancing efficiency in procurement and resource management.
Conclusion
The Indian defence budget is a cup half full; there is progress, but significant gaps remain. More funding, efficient spending, and strategic reforms are required to address India’s security concerns. The government must start taking bold and decisive action steps, ensuring that national security is not compromised in an ever-increasingly volatile world.
Maj Gen Gajinder Singh