| Introduction: Contextual Introduction Body: Implications of declining defence budget on national security and military modernization. Conclusion: Way forward |
India’s defence budget as a percentage of government expenditure and GDP has been witnessing a steady decline over the past few years. In the 2024-25 budget, defence allocation fell below 13% of total government expenditure and to 1.9% of GDP. Given India’s complex security environment, this trend raises concerns about national security and military modernization.
Implications for National Security
- Operational Readiness and Preparedness: With 57% of the defence budget allocated to personnel costs (salaries and pensions), only 15% is earmarked for operational preparedness. This limits funding for essential training exercises, maintenance of equipment, and procurement of ammunition, thereby affecting the military’s readiness for high-intensity conflicts.
- Border Security Challenges: The Indian Army, which handles the bulk of border security, receives only 22-28% of the capital expenditure (capex), despite fielding 84% of military personnel. This limits its ability to procure essential weaponry such as artillery, helicopters, and protective gear, posing a challenge to counter threats from adversaries like China and Pakistan.
- Maritime Security and Naval Shortfalls: Despite growing maritime challenges, the Navy, which is critical for securing India’s 7,500 km coastline and the Indian Ocean sea lines of communication (SLOCs), remains short of warships and submarines. The capital allocation (31-36%) remains inadequate for acquiring crucial assets like aircraft carriers and anti-submarine warfare capabilities.
- Air Force Modernization Crisis: The IAF receives the largest share of the capex budget (38-45%), but faces critical shortages of fighter aircraft. With squadron strength well below the required level, expensive imports such as Rafale jets ($8.7 billion for 36 aircraft) and costlier domestic manufacturing (HAL’s Su-30MKI) strain the budget, impacting long-term planning.
Implications for Military Modernization
- Slow Progress on Atmanirbhar Bharat in Defence: The capital expenditure growth of just 7% per year is insufficient to support India’s ambitious self-reliance program (Atmanirbharta). Limited funding hampers investments in Indigenous defence manufacturing and high-tech R&D, affecting long-term strategic autonomy.
- R&D Deficiencies and Lack of Technological Edge: Modern militaries spend 50-60% of their budgets on capital investments; India allocates only 27.7%. This lack of investment in high-technology research and Indigenous defence production affects India’s ability to keep pace with emerging threats in cyber, space, and electronic warfare.
- Budgetary Misallocation and Transparency Concerns: The inclusion of agencies like the Border Roads Development Board (BRDB), Coast Guard, and Jammu & Kashmir Light Infantry under the MoD (Civil) budget creates opacity in defence accounting. This makes it difficult to assess actual allocations for modernization and procurement.
Conclusion
The declining share of the defence budget in overall government expenditure raises significant concerns for India’s national security and military modernization. While fiscal prudence is necessary, underinvestment in key military capabilities could undermine India’s strategic preparedness. The government must balance economic constraints with national security imperatives by prioritizing modernization, streamlining defence accounting, and ensuring an optimal allocation of resources among the three services.
