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India's new defence budget sends a signal of strategic determination in a more than unusually turbulent world

The Finance Minister has been rather generous. The new defence budget is being touted as being the first double digit jump in India’s defence expenditure in decades, ever since its steady decline from 2017. At 2% of the Budget, it sends a signal of strategic determination in a more than unusually turbulent world. The funds will have to be used prudently and expeditiously, which demand systemic change, not tinkering, in the Budget process. As ‘frenemies’ abound and a tenuous ‘rules-based order’ collapses, there is no time to lose.

The most talked about aspect is the Budget’s 15% hike hitting 2% of GDP (up from 1.9% last year). Second, in a notable shift, capital expenditure has outpaced the revenue budget, up more than 22%, reversing years of neglect. Third, there is a clear thrust toward modernisation. The Indian Air Force gets a hefty 32% rise, while the Indian Army has got a 30% hike for heavy vehicles and weapons.

Oddly, the Indian Navy, with its ambitious commitments in the Indian Ocean, gets 3%. Ironically, this is probably due to its success in indigenisation, and a proven capability to absorb allotted funds.

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