Defence kitty below 2 pc of GDP

“There are two pointers. First, the fiscal outlay is not getting translated into outcomes, and the other, macro-level financial planning of the Government is inadequate. We are losing sight of the bigger picture as military modernisation is getting affected,” said C Uday Bhaskar, former director of the Institute for Defence Studies and Analyses.

Compared to the booming economic growth, India has been consistently spending less on the military — Defence spending as percentage of GDP has seen a persistent decline from 3.38 per cent in 1987-88 to 1.98 per cent in 2008-09 — at a time when most nations have increased their budgetary allocation for defence. This, experts fear, will create capability voids in India’s armoury in the coming decades, especially compared to neighbour China which is modernising its armed forces at an unprecedented rate.

On all discreet fiscal indicators, China is ahead of India. In terms of expenditure, last year Delhi spent $24 billion on defence against the $50 billion by China. In the world order, China comes next only to the US in terms of defence spending while India is stuck at number 10. “China is ahead in the vital area of trans-border capabilities like missiles, strategic weapons and space where India is lagging behind. This can have a long-term politico security impact (in the region),” Bhaskar said.

This persistent decline and the “present defence expenditure of some of our neighbours” has even prompted the Parliamentary standing committee on defence to recommend a fixed minimum spending of GDP on the defence forces. “It is strongly recommended that the Ministry of Defence should take up the matter with the Ministry of Finance for providing a minimum 3% of GDP for defence services every year in order to ensure a fixed amount to carry out their modernisation, capital acquisition and R&D programme and fulfil the need-based requirements,” read one of its recommendations.

Gunning for funds

• $10 billion fighter aircraft replacement programme

• Estimated $1 billion contract for 317 military helicopters

• IAF requires 12 VVIP helicopters, attack choppers, heavy lift rotary wing aircraft

• Army is looking for 155 mm Howitzers, surface-to-air missiles, UAVs, small arms, night vision equipment

• Navy to acquire new frigates, reconnaissance aircraft, multi-utility helicopters besides upgradation of its ageing fleet