Analyzing India's Defence Budget: Modernization, R&D Gaps, and Procurement Challenges
India's new defence budget sees a significant jump, hitting 2% of GDP. While capital expenditure has outpaced revenue budget, concerns remain regarding the slow pace of modernization and the 'guns vs butter' debate. The Indian Air Force and Army received substantial hikes for equipment, but the Navy's share remains modest at 3%. A critical issue is the low investment in R&D (0.66% of GDP) compared to nations like Japan. The article calls for systemic changes, including a Non-Lapsable Defence Modernisation Fund, to fix bureaucratic delays in procurement.
Key Points
- The defence budget has reached 2% of India's GDP, marking a strategic shift in spending.
- 75% of the capital acquisition budget is earmarked for domestic industries to promote 'Aatmanirbharta'.
- India's R&D spending stands at 0.66% of GDP, significantly lower than other major global powers.
- The article advocates for a Non-Lapsable Defence Modernisation Fund to ensure consistent funding for long-term projects.
Exam Facts
- Defence budget as % of GDP: 2%.
- R&D budget as % of GDP: 0.66%.
- Domestic procurement earmark: 75% of capital acquisition budget.
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