The Defence budget 2021 securing India. Defense Budget was one of the highlights of this year’s budget especially during times of pandemic and when India manages the threats of a two-front war.
The budget presented by the Modi government allocated Rs 4,78,196 Crores ($65.5 Billion) to the Ministry of Defence (MoD). The Defence budget 2021 securing India.
Regardless of the state of the economy, among the pressing requirement of sectors like health and infrastructure, and the constraints in raising higher receipts through taxation and borrowings, the government did allocate substantially higher funds for the defense to deal with the ongoing faceoff with China along our northern borders but in the future, the long- term military modernization of forces should be prioritized. The Defence budget 2021 securing India.
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Highlights
Even after recovering from the worst disruption and the Indian Economy taking the hit of it, reviving the economy is on the central agenda of the Modi Government, as all this requires money and providing welfare schemes for those in dire need.
This defense budget stands as an indication of much-needed course correction and efficient use of finances as there is one thing which is clear: Indian Government will not shy away from two things: 1) Indigenization 2) Modernization for the Defence as these are one of the highest allocations being made among the other government ministries.
The International Monetary Fund owing to the resilience of the Indian Economy and the robust mechanism by the RBI which has been managing the massive contraction of the economy following the stringent lockdown and pandemic; has projected India’s GDP to increase at the rate of 11.5% in 2021.
Among them, one of the most noticeable pushes has been seen with the Department of Space which has been a major focus as there is a bump of 7.5% from last year’s budget but an increase of 45.2% increase allocation from 2014-15, signals that Space will be the next frontier after Navy, Airforce and Armed Forces among the others as India has been ramping up its effort to gain a strategic edge in that field.
The allocation provided to Defence Services (Revenue) is quite intriguing as there is a substantial increase in the allocation of procurement of stores that include spares, ammunition, winter clothing and by planning to spend more on new heavy and medium vehicles for the Army; aircraft, aero-engines and naval fleet for the Navy; and land for the Air Force; the government has set its priorities on how it wants to use the limited resources at its disposal to shore up and augment the country’s military strength.
Significant allocation for the purchase of missiles, air defence systems, and arms and ammunition, among others, have also been made under the designation of “other equipment.” Undoubtedly, the ongoing border dispute with China and the challenges of a two-front theatre have influenced these allotments.
India recently concluded Aero India 2021 – which is a three-day military expo event primarily focused on Airforce alongside hosting the Indian Ocean Region Defence Minister’s Conclave for enhancing capabilities of Navy – as New Delhi is focusing on domestic manufacturing of bigger and complex platforms thus boosting opportunity for investment and enhancing the technology levels.
Additionally, the Ministry has decided to prioritize the domestic purchase route which means a direct push for the domestic sector as 52,000 Crore has been allotted to indigenous defense platforms, showing a lot of promise for New Delhi’s commitment towards the country’s defense capabilities.
One cannot deny the fact that India’s national security strategy will have to embrace new technologies that revolutionize the war capabilities in case of a two-front war. Research, development, and the use of newer technologies will be crucial in years to come as the deployment of swarm drones is already being revolutionized and encouraged in India due to its capabilities and attack capabilities.
Roadmap
The 15th Finance Commission, in the month of July 2019, suggested New Delhi address severe resource constraints being faced by the Defence and Home Affairs ministries in their modernization efforts.
Also, to examine whether a “separate mechanism for funding of defense and internal security ought to be set up and if so, how such a mechanism could be operationalized.” In view of the charter, the Commission has made several vital recommendations that would, if implemented, go a long way in mitigating the shortages of resources required for security sector modernization and make the defense expenditure, in particular, sustainable.
This fund would be to provide a window and bolster the purchasing power of forces and help reduce the technological superiority as the Commission hopes that a calibrated roadmap should enable the MoD to a source not more than 30 percent of its arms requirement from the foreign vendors by the end of 2025-26.
Simultaneously, other recommendations by the Commission, particularly those related to curbing manpower costs, also need to be acted upon without losing any time. Suffice it to say that reform in the manpower cost is long overdue and any further delay will squeeze modernization and adversely affect India’s defense preparedness.
The Finance Commission has given the roadmap. It is time for the MoD, particularly the Department of Military Affairs headed by the Chief of Defence Staff (CDS), to act on it.
Conclusion
The Meagre hike of 1.4% in the defense budget of 2021-22, could only be explained by a sharp contraction in the defense pension budget due to the worst economic crisis that the country has faced in a century and the subsequent downturn in revenue collection. Going forward, the non-lapsable modernization fund, suggested by the 15th Finance Commission, could play a vital role in supplementing funds for the modernization of the Indian armed forces.
Given the urgency of capability build-up, especially in view of the Chinese aggression along the international border, this vital piece of recommendation needs to be implemented at the earliest.
The Budget provides a window through which one can see the resolve of this government to prioritize national security as it was given its due importance as an important element of this finite yet stressed budget in times of the pandemic.