India hikes defence spending by 21%

By AFP
Published: February 28, 2013

India's defence budget hike will surely raise eyebrows in Pakistan. PHOTO: REUTERS

NEW DELHI: India on Thursday hiked its defence spending by 21 percent to $42.7 billion and promised that strains on the public finances would not hamper moves to modernise its million-plus military.
The government, one of the world’s largest arms buyers, will raise defence spending to 2.3 trillion rupees ($42.7 billion) for the financial year to March 31, 2014, Finance Minister P. Chidambaram said in his budget.
The figure is up a fifth from 2012-13 when the defence budget stood at 1.9 trillion rupees.
“I assure the house that constraints will not come in the way of providing any additional requirement for the security of the nation,” Chidambaram told parliament.
The minister earmarked $16 billion as “capital expenditure” in line with India’s ambitious moves to acquire the latest hardware.
The latest increase is likely to upset nuclear-armed neighbour Pakistan which has fought three wars with India since independence in 1947.
India is on the brink of buying 126 French Rafale fighter jets for $12 billion and is shopping for some 400 combat helicopters worth tens of millions of dollars, as well as artillery, drones and electronic warfare systems.
India and Russia in 2010 agreed to jointly build 250 advanced stealth fighter jets worth $25 billion.
New Delhi is also locally building a nuclear-powered submarine as well as a range of nuclear-tipped ballistic missiles which can strike deep inside China.
The two Asian giants fought a brief but a bitter border war in 1962 and despite several rounds of talks the two sides have failed to resolve their territorial disputes.

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Reader Comments (13)

  • Indian Wisdom
    Feb 28, 2013 - 2:28PM

    As per Times of India (report by PTI) the defense expense increase was 14% and not 21%.

    “In the midst of a major modernisation drive, defence ministry on Thursday got a 14% hike in its budget as finance minister P Chidambaram gave it Rs 2,03,672 crore for 2013-14″
    http://timesofindia.indiatimes.com/business/budget-2013/union-budget/Union-Budget-2013-Government-hikes-defence-allocation/articleshow/18727401.cms

    Further the expenditure on Education sector was increased by 17% compared to 14% increase in Defense sector……………….

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  • Dr Dang
    Feb 28, 2013 - 2:44PM

    Game on !!!

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  • Candid1
    Feb 28, 2013 - 2:50PM

    This once again demonstrates India’s belligerent ambitions. India faces no enemies that justify such a vast military budget, which is purely designed to enable India to perpetuate its aggression in the region, and beyond. I wonder how secure the hundreds of millions of hungry and homeless Indians feel under this budget?

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  • James
    Feb 28, 2013 - 3:08PM

    Could you please explain from where you get this information !!

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  • sheikh
    Feb 28, 2013 - 3:15PM

    still around 2.1 % of gdp…. i would say its still less….considering our western neighbour which near about 3% of gdp

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  • Gulam Rasool "Kuldeep sharma"
    Feb 28, 2013 - 3:17PM

    Its unfortunate but we firmly need to increase our defense budget, just because of China.
    Gulam Rasool
    New Delhi

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  • BlackJack
    Feb 28, 2013 - 3:28PM

    This naturally has no implications for Pakistan (we just need to spend as much as Pakistan does for that) – let us see when Pakistan wises up to the fact that it can no longer compete.

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  • Feb 28, 2013 - 5:27PM

    2,03,672 Lacs crore or $42.7 billion,wao thats a huge amount and a good increase from last year but the buck doesn’t stop here this amount may not be the final as finance minister has made it clear that any additional funding will be met so $42.7 billion+.

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  • sheikh
    Feb 28, 2013 - 7:09PM

    i wonder y pakistan spends around 3% gdp consideringthey have 45.7% people living below poverty line ??? :)

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  • Dawn
    Feb 28, 2013 - 7:16PM

    Pakistan should not worry. $ 42 billion is more than the total general budget of Pakistan, but it is still only 2.1% of Indian GDP and 12% of Indian Budget. Pakistan spends far more at 3% of Pakistan GDP and 20% of Pakistani Budget. So, it would be better for Pakistan to concentrate on its GDP and not on India.

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  • Sajida
    Mar 13, 2013 - 10:31AM

    Maybe thinking major public unrest will take place and useless police won’t be able to stop it.

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  • Sandip
    Mar 14, 2013 - 12:06AM

    @Candid1: sure. But we need to keep our defense preparedness in good shape to ensure that no nation or non state actors would even want to become an enemy in the future as well. It’s only now when shadow enemies have seen that their is no way that they can get Kashmir by force, that they have now decided to engage in trade.
    The belligerrance that was earlier there has been replaced with a conciliatory tone. That’s what we need a strong military for.

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  • Naresh
    Mar 24, 2013 - 11:00PM

    @Dawn:
    You stated : Pakistan spends far more at 3% of Pakistan GDP and 20% of Pakistani Budget. So, it would be better for Pakistan to concentrate on its GDP and not on India.
    .
    Please read the following Article :
    .
    http://tribune.com.pk/story/523465/budget-paper-extra-billions-given-to-army-acknowledged/
    .
    Budget paper: Extra billions given to army acknowledged
    .
    It states :
    .
    The proposed accumulative defence spending adds up to Rs 970 billion or roughly 30% of the next year’s proposed budget.
    .
    As such the actual Pakistan’s Defence Spending is Fifty percent above you figure of 20%.
    .
    Cheers

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