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Minister of State for <keyword id="32723" type="COMPANY" weightage="20" keywordseo="Defence">Defence</keyword> Subhash R Bhamre indicated the Indian government may cut the <keyword id="45134" type="UNKNOWN" weightage="20" keywordseo="Defence-budget">defence budget</keyword> by half within a decade. 
 
Bhamre said around $14 billion worth of defence offset obligations would be discharged in India by foreign original equipment manufacturers (OEMs) by 2028 and the defence industry has the potential to become a huge foreign exchange earner and also lead the country to its professed goal of self-reliance. 
 
"Nearly $14 billion worth of defence offset obligations will be discharged by the foreign OEMs by 2028," he said. 
 
Bhamre said India spends approximately 40 per cent of its total defence budget on capital acquisitions, and about 60 per cent of defence requirements are met through imports. 
 
"The present government has emphasised on indigenous manufacturing to reduce the defence budget by 50 per cent within a decade," the Union minister said. 
 
"There is an urgent need for innovation in the defence manufacturing sector with increased focus on R&amp;D and to prepare a pool of human resource expertise which will help in making equipment and technologies cheaper," he said. 
 
Thanks to the Centre's 'Make in India' campaign, the defence sector has moved from the periphery to the core of Indian manufacturing, he pointed out. 
 
"The sector not only has the potential to augment manufacturing but also add nearly one million direct and indirect jobs," Bhamre said. 
 
He also said the government is taking steps to bring in a framework that encourages collaboration between public and private sector companies for defence export based on public private partnership model. 
 
"The DPSUs (Defence Public Sector Undertakings) and private sector should also put in place a system to share the capability and capacity to support overseas sales, servicing and maintenance throughout the life of the product," he said. 
 
Pointing out that the human resource capacity in the private sector has already demonstrated its worth in fields of automobile, IT and service sectors at global platform, he said the government is trying to replicate the same model by inducing private sector and foreign OEMs to invest in defence manufacturing.

India may cut defence budget by 50% within a decade

While a number of military modernization programs are long pending for want of funds, analysts are of the opinion that India needs to allot more funds for the defence. While the budget 2019 to be announced on July 5 has triggered a lot of expectations from across different sectors, here we discuss why India’s defence needs more budget at this point. The latest defense budget for 2019 announced by the Modi’s government towards the end of its first tenure featured only a moderate 6.87 percent bump of $49.68 billion. Widespread beliefs say this rise is not adequate to support the modernization programs visualized by the government and also the government’s make in India initiatives for the defense requirements. Last time, a total amount of $16.91 billion was allocated for the purchase of new weapons and the other kinds of military hardware. This was a rise when compared to the $14.68 billion allotted during the previous financial year. However, there are also a number of liabilities to be addressed which might chip away the funds. Hence only a significant increase in the defense budget can adequately address the needs of the defense sector in the country. Considering the liabilities in front of the government, Amit Cowshish, ex financial advisor for the Defense Acquisition Ministry says the budget will need to raise the allotment for the defense sector significantly. If this does not happen, the Ministry will have to manage the things as it has been doing in the past. The latest allotment for the defense sector pegged at $9.6 billion is more than five times of what Pakistan is allotting for its defense sector. Pakistan’s defense budget is barely enough only to maintain its basic operations. However, considering the aspirations of the country and the zeal to modernize the military, India will need to allot more for the defense. While announcing the <keyword id="547606" type="ORGANIZATION" weightage="20" keywordseo="interim-budget">interim budget</keyword> for 2019 just before the elections, Piyush Goyal, the then Union Minister for Finance and Corporate Affairs assured that additional funds would be pooled in in order to make the country defense-prepared and also to maintain its borders. The government already has a number of commitments and liabilities in the defense sector like paying for Rafale fighters, helicopters, S-400 missile systems and warships and helicopters. Hence only a significant increase in allotment for the country’s defense will suffice the growing requirements of the military. The budget that will be announced on July 5, 2019 will be the first one to be announced by Nirmala Sitharaman, the new finance minister who takes charge after being the defense minister during the last tenure of the BJP government. Hence we can expect that she is familiar with the real needs of the defense sector and so she could have given her best in the budget to address the growing needs of the defense sector in the country. We need to wait and see if this assumption comes true by way of the military sector receiving more funds in the full budget 2019.

Why India's defence budget needs more money

<ul><li>The union budget will be presented in the parliament on July 5, 2019. </li><li>The defence forces are hopeful of increased budget allocation as Smt <keyword id="129243" type="PERSON" weightage="20" keywordseo="Nirmala-Sitharaman">Nirmala Sitharaman</keyword> herself is the former defence minister. </li><li>India is the <keyword id="7821032" type="UNKNOWN" weightage="20" keywordseo="fourth-largest-defence-spender">fourth largest defence spender</keyword> globally.</li></ul>The <keyword id="112134" type="COMPANY" weightage="20" keywordseo="Indian-Armed-Forces">Indian armed forces</keyword> expect the Union Budget 2019, to be announced on July 5, to provide more money to modernise and upgrade the country’s defence establishment amidst ever-increasing global and internal challenges. Fuelling this hope is the fact that the newly-appointed Finance Minister Nirmala Sitharaman was in charge of the defence ministry in her last role and therefore, she would be well aware of the challenges and requirements of the forces. The defence budget has increased nearly doubled in the last five years, the first term of the Narendra Modi government. But the money was still not enough to upgrade the weapons because the lion’s share of the allocation for the ministry of defence (MoD) goes into paying salaries and pensions. 
 
 
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 The Indian army has the largest share in the defence budget, more than half. Second in the list comes that <keyword id="15141" type="COMPANY" weightage="20" keywordseo="Indian-Air-Force">Indian Air Force</keyword> followed by the navy, DRDO and ordnance factories. 
 
 
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 INDIA’S GLOBAL RANK In 2018, India became the fourth largest military spender in the world, with the United States of America, China and Saudi Arabia ahead in the list and France at the fifth spot. Global military expenditure also grew 2.6 % to $1.8 trillion in 2018 compared to a year earlier, according to the Stockholm International Peace Research Institute (SIPRI). India’s defence allocation grew 6.5% in the year ending March 2019. Geopolitical tensions are rising around the world- tensions between the <a href="https://www.businessinsider.in/Simple-economics-show-how-Trump-is-beating-up-on-Iran-without-firing-a-shot/articleshow/69934762.cms">US and Iran</a>, simmering conflict in <a href="https://www.businessinsider.in/It-looks-like-the-US-has-been-quietly-lowering-the-threshold-for-conflict-in-the-South-China-Sea/articleshow/69832087.cms">the South China sea</a>, the constantly <a href="https://www.haaretz.com/middle-east-news/.premium-the-iran-crisis-is-exposing-a-far-deeper-conflict-between-trump-and-europe-1.7427507">volatile middle east</a>, and last but not the least <a href="https://www.businessinsider.in/if-india-and-pakistan-have-a-limited-nuclear-war-scientists-say-it-could-wreck-earths-climate-and-trigger-global-famine/articleshow/68207655.cms">India’s own conflict with Pakistan</a> and the <a href="https://www.businessinsider.in/Tensions-are-still-simmering-a-year-after-the-worlds-2-biggest-countries-almost-clashed-over-a-border-at-the-top-of-the-world/articleshow/65507895.cms">threats from China</a>, make the modernisation of India’s military necessary. 
 
 
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 Vintage weapons In 2018, the then Vice Chief of Army Lt Gen Sarath Chand said that 68% of the Army’s equipment is in the ‘<a href="https://www.rediff.com/news/report/sixty-eight-per-cent-of-armys-equipment-is-in-vintage-category/20180313.htm">vintage category</a>’, adding fund crunch will also impact the serviceability of the existing equipment and may even affect payment of instalments for past purchases. It had set up of the Special Forces Division, Defence Cyber Agency, the Defence Space Agency and the Defence Space Research Agency (DSRA). It also came up with the concept of <a href="https://www.businessinsider.in/indian-army-is-setting-up-integrated-battle-groups-along-the-pakistan-border-which-will-be-self-sufficient-to-fight-a-war/articleshow/69884097.cms">Integrated Battle Groups (IBGs)</a>. Insufficient allocation will hit its modernisation at a time when Chinese military is competing to reach the level of the US and Pakistan bolstering capability of its forces, the Army had told a <a href="https://economictimes.indiatimes.com/news/defence/parliamentary-standing-committee-criticises-govt-for-inadequate-allocation-of-funds-to-army/articleshow/67427334.cms?from=mdr">parliamentary panel</a>. SEE ALSO: <a href="https://www.businessinsider.in/indian-army-is-setting-up-integrated-battle-groups-along-the-pakistan-border-which-will-be-self-sufficient-to-fight-a-war/articleshow/69884097.cms">Indian Army is setting up ‘Integrated battle groups’ along the Pakistan border which will be self-sufficient to fight a war</a>

India’s defence budget has nearly doubled in 5 years but the money is not enough to upgrade the weapons

<keyword id="6355261" type="POSITION" weightage="20" keywordseo="Finance-minister">Finance Minister</keyword> <keyword id="42575" type="PERSON" weightage="100" keywordseo="Arun-Jaitley">Arun Jaitley</keyword> has announced an increment in the <keyword id="32723" type="COMPANY" weightage="20" keywordseo="Defence">defence</keyword> budget to Rs 2,74,000 crore excluding pensions. From this amount, nearly Rs 86,000 crore will be used for capital acquisition. 
 
Jaitley also announced that a central defence travel system is open for use and now soldiers can book travel tickets online. Other announcements included development of a comprehensive web based defence pension distribution system for defence pensioners has also been developed. 
 
As per the experts, that atleast a 10 % increase was needed to deal with inflation and the vast sums required to modernize India's aging military hardware from Soviet era aircraft to outdated guns and body armor.

Arun Jaitley increases defence budget by 5.8%

Finance Minister Arun Jaitley is likely to up the allocation in defence by 9% to Rs 2.68 lakh crore. 
 
In the Budget 2016-17, the pension bill may go up by more than Rs 80, 000 crore. 
 
In 2015-16 budget, out of Rs 93,675 crore, Rs 77,406 crore were earmarked for acquisition of weapon systems for the three forces. 
 
However, the commitments haven’t been fulfil as yet due to payments for previous procurements were to be disbursed after reaching certain milestones. 
 
"In some cases, deliveries or milestones could not be ensured on time by the departments. This has resulted in some funds for committed liabilities also lapsing," a senior official told ET. 
 
(Image: Reuters)

Budget 2016: Arun Jaitley may hike defence budget allocation by 9%

Prime Minister <keyword id="6354477" type="General" weightage="80" keywordseo="narendra-modi" source="Orion">Narendra Modi</keyword> on Wednesday assured the new generation entrepreneurs in the defence equipment world that the 'Made in <keyword id="3658" type="General" weightage="80" keywordseo="india" source="Orion">India</keyword>' products will get priority in defence procurement. Sixty-eight per cent of the defence budget has been earmarked for indigenous products, he added. While inaugurating the defExpo-2022 here, the Prime Minister also launched the Indian Military Airworthiness Procedures (IMAP), HTT-40, Indian Defence Mart and defence <keyword id="15298793" type="General" weightage="80" keywordseo="space-msn" source="Orion">Space Msn</keyword> besides virtually laying the foundation stone for the DEESA Airfield. He said the country was once a net importer of defence equipment, but over the last eight years, defence manufactured in India is in demand across the world, and the exports have grown eight times. It has touched USD 1.59 billion, and the country targets to achieve the USD 5 billion mark in the next five years. Citing the success of the Brahmos missile, Prime Minister <keyword id="6354642" type="General" weightage="80" keywordseo="modi" source="Orion">Modi</keyword> said it is placed in one of the best technology missile categories and many countries have evinced interest in buying it. All three defence wings and indigenous companies' innovations are putting the nation on global armament nation. INS Vikrant aircraft carrier, Lightweight Helicopter 'Prachand' and tanks and indigenous combat guns are the pride of India, he said. "In the coming years, Space Diplomacy is going to take India to a new height as our satellites will be sharing real-time access with 60 developing countries. <keyword id="62000" type="General" weightage="80" keywordseo="maritime-security" source="Orion">Maritime Security</keyword> is a global priority and India has taken initiative in maritime security in the Indian Ocean region, in which 46 friendly countries are working on it," he said. Some 450 Memoranda of Understandings and agreements are going to be signed during these four days of DefExpo-2022. The Prime Minister, without naming the Congress, said, "Earlier pigeons were released, now Cheetah is now released, this is the difference of the government." He added in the past years, "our majority budget was going into importing defence equipment, now the time has changed. All three defence wings have made a list of 411 equipment which will be purchased from domestic manufacturers, only select items will now be imported," he added. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/indians-to-benefit-as-canada-aims-to-grant-citizenship-to-300000-people-in-2022-23/articleshow/94956352.cms">Indians to benefit as Canada aims to grant citizenship to 300,000 people in 2022-23</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/over-50-lakh-vehicles-deregistered-in-delhi-till-oct-17-this-year/articleshow/94956121.cms">Over 50 lakh vehicles deregistered in Delhi till Oct 17 this year</a>

68% of defence budget allocated for procuring indigenous equipment: PM

India's defence budget has seen a small increase

Indian Air Force will induct three to four indigenously developed Light Combat Aircraft '<keyword id="6376012" type="COMPANY" weightage="100" keywordseo="Tejas">Tejas</keyword>' this year and a total of eight squadrons in eight years, <keyword id="32723" type="COMPANY" weightage="100" keywordseo="Defence">Defence</keyword> Minister <keyword id="6363133" type="PERSON" weightage="100" keywordseo="Manohar-Parrikar">Manohar Parrikar</keyword> said today. 
 He told the <keyword id="6355187" type="ORGANIZATION" weightage="100" keywordseo="Lok-Sabha">Lok Sabha</keyword> that a Letter of Intent for procuring 120 Tejas was issued and the first aircraft was inducted by the <keyword id="6355075" type="ORGANIZATION" weightage="100" keywordseo="IAF">IAF</keyword> in 2015 and three to four would be inducted this year. 
 
"Letter of Intent has been issued for 120 LCA. The first aircraft was given during 2015. The next three to four, to form the squadron, will be delivered during current year. 
 
"We are also in the process of approving the second line of manufacturing to the HAL so that they can produce 16 aircraft per year. In the next eight years, you will have about eight squadrons of LCA," he said during Question Hour. 
 
Aeronautical Development Agency (ADA) is the nodal organisation for organisation for the development of 'Tejas'. 
 
Parrikar said India has been importing 15 per cent of the global arms imports which has now come down to 14 per cent. 
 
India's arms import bill has also come down from around Rs 35,000 crore to Rs 24,900 crore now, he said. 
 
The Defence Minister said Indian defence industries, ordnance factories and shipyards have been functioning in full capacity and the orders received by them have increased substantially over the years They have orders to the tune of Rs 1,60,000 crore and they would not be able to complete all orders even in the next ten years, he said, adding that these orders were indigenous, mostly from the government, and just two per cent orders from abroad. 
 Replying to another question, Parrikar refuted a suggestion that India's budget allocation for defence sector was low in comparison to countries like the US, China and Pakistan, saying the pensions of defence personnel was not part of the <keyword id="45134" type="UNKNOWN" weightage="100" keywordseo="Defence-budget">defence budget</keyword>. 
 
He said modernisation of the armed forces was a continuous process based on threat perception, operational challenges and technological changes to keep the armed forces in a state of readiness to meet the entire spectrum of security challenges. 
 
"Government attaches the highest priority to ensuring that the armed forces are sufficiently equipped to meet any operational requirement. This is achieved through induction of new equipment and technological changes to keep the armed forces in a state of readiness to meet the entire spectrum of security challenges. 
 
"Government attaches the highest priority to ensuring that the armed forces are sufficiently equipped to meet any operational requirement. This is achieved through induction of new equipment and technological upgradation of capabilities," he said. 
 
Image credit: Indiatimes

In 8 years, IAF to induct 8 squadrons 'Tejas': Manohar Parrikar

Piyush Goyal: Defence budget at a record high at over ₹3 trillion for 2019-20 announced Industry experts point out that India’s defence budget 2018 compares with the top five in the world. In fact, it overtook that of UK’s for the first time in history, says a report by a global think-tank based in London. These studies mark a major change in the military priorities of the country and a major shift in the military balance between the two countries under citation. In 2017, India overtook the UK and became the fifth largest spender on defence in the world by allotting $52.5 billions, which was up from the $51.1 billion allotted in the budget 2016. These figures are brought out for a comparative study by the Military Balance Sheet 2018 report released by the International Institute for Strategic Studies (IISS). Presenting a sharp contrast, the UK’s defence budget showed a fall from $52.5 billion in 2016 to $50.7 billion in 2017. Commenting about the trend noticed with regard to the defence budgets of India and UK, IISS Senior Fellow for South Asia, Rahul Roy-Chaudhury says, "This represents a key shift in the military balance between India and the UK, with India allocating more capabilities to develop its regional resources than the UK in a global context." The report also notes that while India is seen investing a great deal to modernize its military capabilities and infrastructure, China, the globe’s second largest defence budget following the US is seen far ahead of the march allotting three times more resources to its military augmentation at $150.5 billion. The real spending of China on its defence capabilities shows a phenomenal increase of 25% percent in 2016-17 while that of India increased only by 2.4% Roy-Chaudhury notes, "Post-Dokalam, India's military balance with China continues to be significantly in China's favor. Since 2000, China has built more submarines, destroyers, frigates and corvettes than Japan, South Korea and India combined. China will continue to dominate the region militarily and seek to challenge the US in the region as well.” Analysts say that the Chinese army has recruited more than 600,000 personnel than that of India. The Chinese air force has about 1,200 tactical air crafts to compare with just 785 reported to be part of the Indian air force. China has 55 more frigates, cruisers and destroyers than India. IISS says, "The overall capability of the (Indian) army is limited by inadequate logistics, and shortages of ammunition and spare parts. Development and procurement programs across the services are aimed at replacing ageing equipment, but many projects have experienced significant delays and cost overruns, particularly indigenous systems.” To sum up, the report has found that China and Russia with their fourth largest <keyword id="107484" type="PERSON" weightage="20" keywordseo="defense-budget">defense budget</keyword> of the world at $61.2 billion seem to challenge the US’s military supremacy. Hence the US and its allies can no longer depend on the strategic advantage they have been enjoying so far. Saudi Arabia’s defence budget is at an annual spending of $76.7 billion, which becomes the third topmost spending in the whole world. So, to position India’s defence spending among the world’s topmost defence budgets, we can line up the countries in the fashion: US, China, Saudi Arabia, Russia and India.

India Defence budget at a record high at over ₹3 trillion for 2019-20 announced

By Mari Yamaguchi Tokyo, Nov 26 (AP) Japan's Cabinet on Friday approved a 770 billion yen ($6.8 billion) request for an extra defence budget through March to expedite the purchase of missiles, anti-submarine rockets and other weapons amid rising concern over the escalation of military activities by China, Russia and North Korea. The request, still pending parliamentary approval, brings Japan's military spending for the current year to a new high of more than 6.1 trillion yen ($53.2 billion), up 15% from 5.31 trillion yen in 2020. The Defence Ministry says its "defence power reinforcement and acceleration package" is designed to speed up deployment of some of the key equipment from the 2022 budget request. The goal is to beef up Japan's defences against North Korea's missile threat and China's increasingly assertive maritime activity around remote Japanese southwestern islands, officials said. Japan has also raised concerns over recent joint military activities by China and Russia near its waters and airspace. A fleet of two Chinese H-6 fighters and two Russian Tu-95s flew from the Sea of Japan to the East China Sea and to the Pacific Ocean, triggering Japanese Self-Defence Force jets to scramble, Defence Minister Nobuo Kishi said Tuesday. The budget request includes nearly 100 billion yen ($870 million) for the advanced version of PAC-3 mobile surface-to-air missile interceptors and related equipment, as well as cruise missiles. Separately, more than 800 billion yen ($7 billion) will go to speed up the purchase of reconnaissance planes and equipment, including three P-1s, equipment for P-3Cs and vertical launch systems to be placed on two destroyers, to step up surveillance around Japan's territorial waters and airspace. Japan has been stepping up defences in its southwestern regions and islands, including Ishigaki Island, where a new military base with a land-to-sea missile defence system will be operational. Ishigaki is north of the uninhabited Japanese-controlled Senkaku Islands, which are also claimed by China, which calls them Diaoyu. Tokyo regularly protests the Chinese coast guard's presence near Senkaku Islands. The ministry also plans to build housing for ground troops on Ishigaki Island. The combined budget for 2021 will be just over 1% of Japan's GDP, keeping its customary cap. Prime Minister Fumio Kishida has said he is open to doubling Japan's military spending to cope with the worsening security environment. The defence budget also aims to ease burden on Japanese defence equipment and parts suppliers that are struggling to maintain the country's dwindling industry, officials said. The defence budget is part of a nearly 36 trillion yen ($316 billion) draft extra budget approved by the Cabinet Friday to fund an economic stimulus package focusing on COVID-19 preparedness and support for the pandemic-hit households and businesses. Some opposition lawmakers criticised Kishida's government for using the stimulus package to cover military spending. Critics also say Japan, as the world's fastest-aging country with a shrinking population, should allocate more money toward health care and other services. Japan's military spending and capabilities have grown continuously since former Prime Minister Shinzo Abe took office in December 2012, and has since risen by 17%. Abe's government allowed Japan's military to be more involved in international affairs by adopting a new interpretation in 2015 of the war-renouncing Article 9 of the constitution. (AP) RS RS

You Searched For "Defence budget" and got 10 results

India may cut defence budget by 50% within a decade

BI India Bureau

Why India's defence budget needs more money

BI India Bureau

India’s defence budget has nearly doubled in 5 years but the money is not enough to upgrade the weapons

BI India Bureau

Arun Jaitley increases defence budget by 5.8%

BI India Bureau

Budget 2016: Arun Jaitley may hike defence budget allocation by 9%

BI India Bureau

68% of defence budget allocated for procuring indigenous equipment: PM

IANS

India's defence budget has seen a small increase

Business Insider India

In 8 years, IAF to induct 8 squadrons 'Tejas': Manohar Parrikar

BI India Bureau

India Defence budget at a record high at over ₹3 trillion for 2019-20 announced

BI India Bureau

Japan seeks extra defence budget amid China, N Korea concern

AP

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