04 March 2015

Editorial: Is India's Defense Budget Adequate?


By Franz-Stefan Gady

New Delhi’s defense spending will rise modestly in the new fiscal year.

India is modestly increasing its defense spending by 11 percent to around 2.47 trillion rupees ($40 billion) for the fiscal year 2015-2016 starting on April 1, according to Finance Minister Arun Jaitley’s federal budget speech last Saturday. The allocation for defense in the current fiscal year is 2.2 trillion rupees ($35 billion).
The core message in the Indian Finance Minister’s statement was the push to become less dependent on foreign military know-how and imports and to revive the Indian defense industry.
“We have been overdependent on imports, with its attendant unwelcome spin offs. We are thus pursuing the ‘Make in India policy’ to achieve greater self-sufficiency in the area of defense equipment,” Arun Jaitley stated during his speech.
India is already the world’s largest weapon’s importer (in 2013, New Delhi spent $6 billion on buying equipment), largely due to a moribund domestic defense industry. India is expected to spend $100 billion over the next decade on a defense upgrade program. 

Read the full story at The Diplomat