| Introduction: Give a brief context to the question Body: Highlight challenges faced by India in balancing its defence budgeting. Conclusion: Way forward |
India faces several challenges in balancing its defence budget with the need for effective deterrence. These challenges are complex and multifaceted, and they require careful consideration and strategic planning. The challenges on our northern borders and western borders warrant a judicious assessment of India’s defence budget.
Challenges faced by India in balancing its defence budgeting
- Modernization and Technological Upgradation: The rapid pace of technological advancements requires constant modernization of defence capabilities, which can strain the budget. The focus should be on developing asymmetric capabilities in space, cyber, artificial intelligence, quantum technologies, and blockchain. These are likely to be the battle-winning technologies of the future, and to get technology transfer for them will be difficult.
- Manpower Costs: A significant portion of the defence budget is allocated to personnel costs, including salaries, pensions, and benefits. The arrears to be paid for schemes like One Rank One Pension would put a strain on the budget.
- Geopolitical Shifts and Regional Dynamics: Defence priorities and budget distribution may need to be reevaluated in light of the changing geopolitical environment. Increased funding for defence is required in areas such as the Malacca Strait, West Asian rescue missions, and competition with China in the Indo-Pacific.
Potential ways to optimize defence spending
- Indigenous manufacturing: Enhance defence-industrial capabilities to reduce dependency on imports and stimulate the domestic defence industry through programs like Atmanirbhar Bharat, and the Innovations For Defence Excellence (iDEX) scheme are notable achievements. These efforts should be supplemented with an increase in allocation for research and development and support from the private sector.
- Policymaking: Policy initiatives like restructuring of the Ordnance Factory Board, the promulgation of negative lists for imports, the higher allocation for capital expenditure, or even institutionalized support like the non-lapsable Modernisation Fund for Defence and Internal Security (MFDIS) can help to optimize defence spending.
- Strategic partnerships: The need is to regularly assess geopolitical threats and align defence priorities. Creating strategic alliances with like-minded countries such as the US, UK, Japan, and South Korea to share defence budget burdens & collaborate on research and development to mitigate security challenges.
Conclusion
A well-thought-out defence strategy, coupled with prudent resource allocation and effective management, can enable India to maintain a strong deterrent capability in the face of evolving security threats.
