India rejects Pak call on defence budget freeze

Antony was responding to a statement by Pakistani Prime Minister Yousuf Raza Gilani who, while announcing a freeze on defence spending in the upcoming budget, said he expected a “reciprocal gesture from our neighbour (India) for the sake of peace and prosperity of the region”.

The Indian Express, on February 29, had reported that India’s defence budget had fallen below 2 per cent of the GDP for the first time, fuelling concerns that the country could fall behind China in the larger strategic game.

Meanwhile, Antony also made a case for increasing the annual defence allocation to 3 per cent of the GDP.

“In an ideal situation, India should be spending 3 per cent of the GDP — which is the global average — on security,” the minister said.

India’s defence spending, in terms of percentage of GDP, has seen a persistent decline — from 3.38 per cent in 1987-88 to 1.98 per cent in 2007-08.

International defence watchers and US Government reports say that both China and Pakistan have consistently been spending close to 4.5 per cent of their GDP on military affairs.