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<ul><li>₹4.71 lakh crore allocated to defence in Union Budget 2020.</li><li>₹1.33 lakh crore allocated to defence pensions. </li><li>According to World Bank, India is the fourth largest military spending nation.</li></ul> The Union Budget 2020-2021 allocated ₹4,71,378 crore towards defence expenditure this year. Despite the “marginal” increase, resources aren’t nearly enough to meet the department’s requirements. Last year’s budget made the headline for being the lowest since 1962, which was when India went to war against China. A lion’s share of the budget has been allocated to the Army, followed by the Navy and the Airforce. The majority goes towards paying the pensions and salaries of personnel. Pensions, alone, have doubled over the last five years. It’s gone from ₹60,000 crore to ₹1,33,825 crore. It’s not only the magnitude of the allocation that’s a cause of concern but the fact that it’s a recurring future impact. This leaves marginal amounts left over for the Ministry of Defence to upgrade its equipment. This is particularly harrowing for the Air Force and Navy, which are more tech-intensive than the Army. The issue of modernisation Most of this year’s defence expenditure will go towards acquiring the new Tejas Mk 1A aircraft. Although indigenously developed, the aircraft took over three decades to reach fruition and match the capabilities of the MiG-21 aircraft. Even so, its capabilities pale in comparison to other fighter jets around the world. Nonetheless, India plans to order 83 Tejas Mk1A jets, according to ICICI securities expectations. Acquiring new equipment has been a pain point for the defence sector for a while. According to Sameer Patil, a fellow in international security studies with Gateway House — a think tank based out of Mumbai — the Armed Forces currently prefer to import rather than buy homegrown tech. The technology produced in India isn’t up to the mark and better versions of it are available off-the-shelf from foreign suppliers. Patil explains that India’s military research branch — the <keyword id="152819" type="COMPANY" weightage="20" keywordseo="Defence-Research-and-Development-Organisation">Defence Research and Development Organisation</keyword> (DRDO) — also discourages private participation, claiming that they have superior expertise and should get priority in the strategic sector. Despite its shortcomings, India is the fourth largest military spending the world according to the World Bank. SEE ALSO: <a href="https://www.businessinsider.in/budget/news/nirmala-skitharaman-recites-kashmiri-poem-comparing-india-to-a-daal-lake-lotus/articleshow/73832846.cms?src=hp_latest">Nirmala Sitharaman ditches Tamil to recite a Kashmiri poem - comparing India to a Dal Lake lotus</a>

India’s defence budget 2020 increased 9% but not enough to meet the defence needs

<ul><li>It is unlikely that the budget allocation to the Armed Forces will increase dramatically this year, according to Sameer Patil, an expert in international security.</li><li>The lion's share of the budget will go towards the Army, leaving the Navy and the Air Force strapped for cash.</li><li>Patil told Business Insider that the Navy and the Air Force are forced to rely on imports since domestic products are usually inferior in quality or do not meet their requirements even though they don't have enough resources to pay for projects that are already underway.</li></ul>Budget allocation for India's Armed Forces always falls short of requirements. Even though the budget increases every year, most of it <a href="https://www.businessinsider.in/why-india-needs-more-defence-budget/articleshow/70082260.cms">goes toward revenue expenditure</a> to pay salaries and pensions. Even within the entire allocation, <a href="https://www.businessinsider.in/defense/news/indian-army-versus-military-spending-on-other-countries/articleshow/73182937.cms">the lion's share goes towards the Army</a> rather than the Navy or the Air Force, which are more technology-intensive. "The government will try and maintain the <a href="https://www.businessinsider.in/defense/news/india-defence-expenditure-in-2020/articleshow/72822974.cms">incremental growth</a> which they do every year but it will not be sufficient to meet the requirements of the armed forces — particularly for the Navy and the Airforce, where they're finding it difficult as it is even to make payments for the equipment that they have already started purchasing," said Sameer Patil, a fellow in international security studies at Gateway House — a think-tank based in Mumbai told Business Insider. 
 
 
 <div type="image" title="af5_edited" msid="73771070" hostid="261" caption="&amp;lt;p&amp;gt;Indian Air Force imported Apache helicopters from the US&amp;lt;/p&amp;gt;"></div>







 The <a href="https://www.businessinsider.in/defense/news/indias-budget-allocation-for-defence-has-remained-fairly-static-for-the-past-five-years/articleshow/73153930.cms">shrinking allocation of resources</a> means that a lot of the proposals that have already been cleared by the defence acquisition council are now being strapped. For instance, the Indian Navy was supposed to get four landing platform dock-type ship built in India. So far, it only has one -- the INS Jalashva, which it bought from the US. At the end of the day, they are left with no option but to import weapons and equipment. The domestic defence industry is either still developing products which are already available off-the-shelf abroad or producing products of inferior quality. The question of research and development It's not that domestic firms don't wish to invest in research and development (R&amp;D) but they lack incentives. Last year, the government allocated some funds to the Technology Development Fund. However, the money is insufficient to cover even a single project, according to Patil. In addition to scarce resources, the Defence Research and Development Organisation (DRDO) discourages private participation. "If the DRDO finds out that the private sector is engaging in any R&amp;D work, they will come and say that we will do the R&amp;D — because we have the experience and the necessary facilities, and we'll give you the final product," explained Patil. The government can't say no Once the DRDO steps in, the government isn't in a position to say no. For example, the Naval Light Combat Aircraft developed by the DRDO and <keyword id="86569" type="COMPANY" weightage="20" keywordseo="Hindustan-Aeronautics-Limited">Hindustan Aeronautics Limited</keyword> (HAL) were rejected by the Navy four years ago. The Navy explained that they did not need the new choppers because they had already purchased Apache and Chinook from the US. Nonetheless, HAL is still pursuing the project. 
 
 
 <div type="image" title="af2_edited" msid="73770980" hostid="261" caption="&amp;lt;p&amp;gt;&amp;lt;sup&amp;gt;&amp;lt;/sup&amp;gt;Two officers and five other IAF personnel were killed when an indigenous Dhruv advanced light helicopter crashed in a field near Sitapur in Uttar Pradesh in 2014&amp;lt;/p&amp;gt;"></div>







 "Which is why the armed forces are saying that they would prefer imports rather than rely on the DRDO. Because sometimes it's of inferior quality and sometimes it doesn't meet the requirements of the armed forces," said Patil. He feels that the private sector is more efficient and currently in the process of absorbing the requisite skills through joint ventures with American aerospace companies — like the Tatas with Lockheed Martin. However, they are not immediately expected to do so. Although defence indigenisation holds a lot of potential, it will take at least a decade or two to show results. 
 
 
 <div type="image" title="af3_edited" msid="73771105" hostid="261" caption="&amp;lt;p&amp;gt;The indigenous Tejas aircraft took 30 years to develop&amp;lt;/p&amp;gt;"></div>







 See also: <a href="https://www.businessinsider.in/defense/news/indian-army-versus-military-spending-on-other-countries/articleshow/73182937.cms">Here's how the budget allocation for Armed Forces in India stacks up on the global scale</a> <a href="https://www.businessinsider.in/defense/news/indias-budget-allocation-for-defence-has-remained-fairly-static-for-the-past-five-years/articleshow/73153930.cms">Budget 2020: Five charts that explain what you can expect from India's defence expenditure this year</a> <a href="https://www.businessinsider.in/defense/news/india-defence-expenditure-in-2020/articleshow/72822974.cms">India's ready to spend on defence — just not on modernisation</a>

The budget is unlikely to give more money for equipment, but the Armed Forces still want expensive imports over domestic products

Considering the massive military modernization, OROP commitments and implementation of Seventh Pay Commission a hike is warranted in allocation in the upcoming Budget 2016 for Defense sector. 
	 
	Post the Gurdaspur and Pathannkot attack, the army’s main focus has been on border management. At present, it is more manpower oriented rather than technological. The border management needs a complete overhaul making it more dependent on state of the art technology. A lesson needs to be learnt from Israel whose border management is mainly monitored through technology and less on manpower. The internal security duties and frequent deployment for natural disasters too need to prepare a lot. 
	 
	More autonomy for Airforce? 
	 The air force is still dependent on the bureaucratic hurdle of getting the <keyword id="6381048" type="ORGANIZATION" weightage="20" keywordseo="Rafale">Rafale</keyword>. Even after the decision of buying the 36 fighters off the shelf, the negotiations are still on. It was expected to be signed during the visit of French President on republic day, but didn’t. The good news though is about the spectacular performance of home made Tejas at the recently completed Bahrain Air Show. Tejas, a 4.5 generation aircraft like Rafale, has always been insufficiently funded by the government and undermined by the IAF with periodic rewriting of ASRs. 
	 
	<keyword id="6355100" type="ORGANIZATION" weightage="20" keywordseo="Indian-Navy">Indian Navy</keyword> 
	 
	The Navy showcased its growing supremacy at the recently concluded International Fleet Review (IFR). The Navy has emerged as an effective tool of Indian diplomacy in past years, making it imperative for policy-makers to redefine the role of the nation’s naval forces in Indian strategy. The Indian Navy’s role is now changed from being local sea control and shore defense orientation, to a more aggressive naval posture. India needs blue water navy not only to meet emerging naval threats from Pakistan and China. It also has to safeguard strategic location at the center of the Indian Ocean as well as to protect its extensive exclusive economic zone. 
	 
	The Indian Navy also has a 15-year plan to achieve full indigenization in all phases of warship construction as a part of Make in India campaign. But it’s a real long time and the Navy to maintain its supremacy in Indian Ocean and to withstand the rising Chinese Navy’s ambition, still needs Submarines, Frigates and helicopters. 
	 
	Make in India 
	 
	Make in India has led to a lot possibilities for private partnership in defense which can bolster manufacturing sector. In a significant boost for the Indian Air Force, Phil Shaw, chief executive of Lockheed Martin India Private Ltd said "We are ready to manufacture F-16 in India and support the Make in India initiative," at the Singapore Airshow 2016. There have been lots of interesting deals that have been signed under Make In India campaign recently: 
	 
	1) BAE Systems to partner with Mahindra for assembling &amp; testing M777 howitzers 
	 
	2) Bharat Forge forms joint venture with Rafael; to manufacture high-tech defence components 
	 
	3)Mahindra, Airbus sign pact to form joint venture for military helicopters 
	 
	Defense allocation: India versus its neighbours 
	 In the neighborhood, Pakistan's defense budget has consistently been getting an almost double-digit growth meanwhile China maintains a defense budget which is three times the size of India. China’s dangerous adventures can gauged from the recent news that is has deployed surface-to-air missiles (<keyword id="694687" type="PERSON" weightage="20" keywordseo="SAMS">SAMs</keyword>) near a Chinese-held feature in the Paracel Island group. As reported by Fox News the missile deployment, based on analysis of satellite imagery; the news has since been confirmed by both the U.S. Department of Defense and Taiwan’s Ministry of National Defense (MND). 
	 
	Incidents of border stand-offs in the North and claiming of Aksai Chin are major irritants. Besides, India's traditional strategy to combat insurgency and terrorism remains military oriented. Combined with the ambition to extend our maritime sphere of interest, these potential threats will require India to give a boost in its defense spending. 
	 
	Looking at India’s neighborhood scenario the government needs to take a call whether it can or cannot hike the defense spending. Our defense strategy should be based on therealities of the money this government can actually spend. 
	 One also needs to look in to the fact that continued government’s fiscal deficit targets and the need to increase the budget allotment on Education, Health and policies for the poor farmers will also be deciding a factor if this Government can actually spend more than 2% of its <keyword id="35050" type="CITY" weightage="20" keywordseo="gdp">GDP</keyword> on defense. 
	 
	The article has been authored by defense analyst Sunil Rampore, who works as a leading consultant in defense and aerospace industry. 
	 
	Image Credit: Indiatimes.com

Budget 2016: Can the Indian defense forces get a little more than 2% of the GDP?

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India’s defence budget 2020 increased 9% but not enough to meet the defence needs

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The budget is unlikely to give more money for equipment, but the Armed Forces still want expensive imports over domestic products

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Budget 2016: Can the Indian defense forces get a little more than 2% of the GDP?

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