Reuters AlertNet - Indian defence budget unlikely to satisfy forces
Indian defence budget unlikely to satisfy forces
27 Feb 2007 08:20:46 GMT
Source: Reuters
By Y.P. Rajesh
NEW DELHI, Feb 27 (Reuters) - India is expected to raise defence spending this year by around 7-8 percent, roughly in line with inflation, but the modest rise is unlikely to make a dent in the long shopping list of one of the world's largest militaries.
The urgent need to improve healthcare, education and infrastructure will check the ambitions of one of the world's biggest military spenders, despite talk of an arms race with neighbours China and Pakistan, officials and analysts said. India raised its defence budget by 7 percent to 890 billion rupees ($20 billion) for the year ending March 2007 as part of ongoing plans to modernise its 1.3-million strong military.
"The increase in defence allocation is expected to be around the same levels, seven or eight percent, to keep it at around 2.4 or 2.5 percent of GDP," a top defence official told Reuters on Tuesday, the eve of the annual general budget.
"Of course, it won't be enough, but that has been the trend," said the official, who did not want to be identified.
Slow decision-making and a lack of strategic planning means that some of the money may not even get spent, as has been the case in the past.
India has pegged its military spending at around 2.5 percent of GDP -- which was estimated at around $920 billion in January -- although the forces and defence experts have clamoured for 3 percent for years.
They say China and Pakistan -- both of whom have fought wars with India -- spend around 5 percent of their GDP on defence and New Delhi needs to keep pace despite peace on both frontiers.
Pakistan, defence officials say, has been on its own modernisation spree, particularly of its air force, and is eyeing more American F-16 fighters and Chinese JF-17 Thunders and the J-10 aircraft.
Despite booming economic ties between India and China, Beijing remains a worry as it boosts defence spending and flexes its muscle with next-generation weapons such as the anti-satellite missile, they say.
AD HOC ARMING?
"Unless adequate provisions are made for defence, no state will be able to pursue its developmental agenda," said Harsh Pant, who teaches defence studies at King's College, London.
"This is much more important for a country like India ... with two of its 'adversaries' straddling it on two sides of its borders and problems on all sides of its periphery," he said.
"Given that, its defence expenditure remains rather modest."
India, the world's fourth largest military, embarked on an ambitious plan to modernise its largely Soviet-era arms in the late 1990s as it began to assert its political and military power in South Asia and the Indian Ocean region.
Over the last three years, it has bought fighter and trainer jets, an aircraft carrier, submarines, missiles, radars and electronic warfare systems, making it the developing world's biggest arms buyer in 2004 and 2005.
Its shopping list, however, is not yet exhausted and includes one of the world's biggest orders for fighter jets, helicopters, cargo planes, more missiles, missile launchers and radars, naval patrol aircraft and artillery.
However, purchases have been slow and staggered as running costs account for about 60 percent of the defence budget, which is expected to be hit this year by high inflation which is hovering close to 7 percent.
Also, decision-making has been slow as politicians and bureaucrats are wary of approving purchases due to a series of arms purchase scandals since the late 1980s.
This, combined with a lack of long-term strategic planning, has hurt modernisation, defence experts said.
"I call this the ad hoc arming of India," said Rahul Bedi, the New Delhi-based expert of Jane's Defence Weekly. "Whatever comes into the market, India wants to buy."