India, the neighbor to China, is nuclear-armed, and Pakistan is, nonetheless, defense, spending only a fraction of GDP. It doesn’t cost anything like other countries. While these figures show a rise in budget size, further scrutiny reveals the basis for this.
Initially, Mr. Rajnath Singh, the Defence Minister, praised a 5% increase in expenditures from ₹5.93 trillion to A wages of ₹6.21 trillion. Meanwhile, this makes inflation even slower against the 5.4% inflation rate. On the other hand, high inflation reduces consumers’ purchasing power. However, the falling currency increases costs.
A prolonged dive results in a stupendous declivity. From 17.43% of the defense budget to the total government expenditure in 2018-19, defense spending as a percentage of total government expenditure has dropped to 13% now.
At the same time, despite the geopolitical tensions that persist.
International standards provide context. SIPRI recommends that nations without alliances, like India, should contribute about 2-3% of their GDP, which is the same percentage of the economy that the US raises. But the situation is even worse compared to the 1980s – India’s share of exports is at 1.9%, almost half as big as in the past, at 4%.
Besides weapons and personnel, significant funds of ₹1.2 trillion support over a million strong paramilitary forces under the Home Ministry. This includes elite units like the ITBP, CISF, and NSG, vital for internal security.
Defense analysts note two strategic reasons for maintaining these reserves. Firstly, to tackle unforeseen situations, from elections to calamities, swiftly. Secondly, to balance against any political activity by the military to preserve civilian supremacy.
While celebrating budgetary increases, defense experts question whether paltry spending, declining ratios, and paramilitary dependence adequately protect India’s interests surrounded by hostile powers. Deeper commitment appears warranted.
