Kamal Davar's Statement: Defense budget increase, but numerous unaddressed challenges persist
India, situated in a politically volatile region, is facing challenges from neighbouring countries such as China, Pakistan, and now Bangladesh. In response, the government is taking steps to strengthen its defence capabilities.
The defence budget for 2025-26 has been allocated at 9.5% higher than last year's budget and 6% more than last year's revised estimates, amounting to 6.81 lakh crores. Of this, 1.8 lakh crores have been earmarked for military modernisation.
India has long been among the top arms-importing nations, but the government is now encouraging foreign equipment manufacturers to set up production units in India for mutual benefit. This move is part of India's "Atma Nirbhar Bharat" programme, which emphasises self-reliance for all defence needs of the nation.
The defence ministry, DRDO, and HAL must move faster to fulfil the Indian Air Force's (IAF) requirements, as the IAF is currently down to a precarious level of 31 fighter squadrons, against the minimum desired strength of 42 squadrons.
To achieve operational capabilities and strategic deterrence, India's armed forces need to be adequately equipped for modern warfare across multiple domains. In this regard, substantial budgetary allocations are required to acquire ultra-modern drones, aircraft, aircraft carriers, warships, nuclear submarines, advanced multi-role helicopters, drones, light tanks, additional artillery, air defence missiles, aero engines, and ammunition.
The post-Covid-19 world is at war with itself, and new forms of warfare have emerged with challenges across various domains. India's defence exports have reached Rs 21,083 crores in 2023-2024, a 32.5% increase from the previous financial year, with the government aiming to have defence exports touching Rs 50,000 crores by 2029. India plans to increase its arms exports primarily to countries including Russia, the United Arab Emirates, and Algeria.
However, India itself is a major arms importer from Russia. Pakistan is reportedly trying to acquire 40 fifth-generation aircraft from China, and China has deployed many fifth-generation aircraft and unveiled two types of sixth-generation aircraft. Defence minister Rajnath Singh has stated that 75% of the modernisation outlay will be spent on buying weapons and equipment from domestic sources.
The Centre must ensure genuine assistance to India's vibrant and technologically advanced private sector. Most of India's defence public sector units have under-performed, and the government needs to address this issue to boost domestic defence production.
The defence budget accounts for 1.9% of the nation's projected GDP and 13.45% of the government's Budget. Despite these allocations, India's defence budgets since Independence have been generally found to be inadequate, with allocations being slightly above 2% of GDP, which is considered quite inadequate.
Finance minister Nirmala Sitharaman has emphasised the need for self-reliance and the successful implementation of the "Atma Nirbhar Bharat" programme. The revised Budget estimates show that the armed forces were unable to spend Rs 12,500 crores of last year's capital outlay. The Centre must address this issue to ensure that the allocated funds are used effectively for defence modernisation.
In conclusion, India's defence budget for 2025-26 reflects the government's commitment to modernising the armed forces and achieving self-reliance in defence production. However, challenges remain, and the Centre must address these issues to ensure India's defence capabilities are robust enough to meet the challenges from neighbouring countries.
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