Editorial of the Day (21 Dec): India’s Defense Budget and Building Deterrence

Context: India faces challenges in aligning defence requirements with budget limits, emphasising indigenization in defence production and the need for sufficient funding to maintain national security against threats, despite electoral pressures.

Current status of India’s Defence

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Challenges Faced By India’s Defence

• Insufficient Air Force Squadrons: The Indian Air Force operates with only 32 squadrons, significantly less than its optimal requirement, with a modest expansion plan aiming for 35 squadrons over the next decade.
• Financial Constraints: The allocation for defence, particularly for capital acquisitions, is restricted due to political promises, resulting in a shortfall of ₹13,746 crore in the 2023-24 defence budget from the projected needs.
• Research and Development Shortfalls: India invests just 0.7% of its GDP in defence R&D, a stark contrast to China’s 2.54%. In terms of global R&D investment, India is ranked 53rd, while China’s expenditure was at a substantial $421 billion in 2022.
• Strategic Military Shifts: In the aftermath of the conflict between Russia and Ukraine, India has had to rethink its military strategy, moving away from the anticipation of brief, intense skirmishes to preparing for longer-term military engagements.

Government Initiatives

• iDEX Program: This program aims to drive innovation within the defence industry, bolstering India’s self-reliance in this sector.
• Branch-Specific Contests: Competitions like the IAF’s Baba Mehar Singh event encourage the creation of technologies such as drones.
• Reform of Ordnance Factories: The government has restructured the Ordnance Factory Board to enhance productivity and efficiency in defence production.
• Engaging the Private Sector: A notable emphasis has been placed on private enterprise by allocating a quarter of defence R&D funding to private entities.
• Atmanirbhar Bharat Initiative: This national campaign promotes indigenous defence production, limiting certain defence imports to support local manufacturing. This policy has led to a surge in defence exports, which soared to nearly Rs 16,000 crore in the fiscal year 2022-23, marking a significant increase from Rs 1,521 crore in 2016-17.

Looking Ahead

India must strike a careful balance between cost-efficiency and operational capability. The armed forces, including the Air Force, Army, and Navy, need an increased budget that reflects the pressing need for modernization amidst changing geopolitical dynamics in the Asia-Pacific region, ensuring India’s defence apparatus remains robust and responsive.

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