New Delhi. When Finance Minister Nirmala Sitharaman presents the Union Budget on July 23, all eyes will be on the defense budget. Especially, considering that neighbors like China and Pakistan, with whom India's tension is well known, have made a big increase in their defense budget. Although it is unlikely that the Finance Minister will give any big gift to the defense sector, the possibility of a decent increase in the defense budget cannot be ruled out.

Is current defense spending sufficient?

According to a report by the Stockholm International Peace Research Institute (SIPRI), India's defence budget in the year 2023 was the fourth largest in the world. You can certainly call it good. But, if you change the context a little, you will know that it is one-third less than China's defence budget. This means that India's current defence budget is inadequate.

China doubled its defense budget

China is facing economic slowdown. Despite this, it has doubled its defence budget since 2015. Modi government has allocated about 75 billion dollars for the defence sector in the interim budget this year. Whereas, China's defence budget will be around 231 trillion dollars in 2024. Pakistan has also increased its defence budget by 15 percent this year, that too despite the economic crisis. This is the reason why experts are insisting that India needs to focus on the defence budget right now.

Where did the expenditure increase in the defense budget?

Currently, a large part of the budget given to the defense sector goes towards paying salaries and pensions. This means that very little money is left for buying weapons and other important needs. The government needs to increase spending on defense innovation, because only then can the country become self-reliant in the defense sector.

Defence research in India is handled by the Defence Research and Development Organisation (DRDO). However, in the interim budget, DRDO's budget was increased by only Rs 540 crore. This allocation needs to be improved further.

Why is there a need to increase the defence budget?

China's actions in the coastal areas of the South China Sea are provocative. This can also lead to a global conflict. India's dispute with Pakistan also continues. In such a situation, India faces challenges to protect its territorial integrity on the LAC and LOC. Therefore, there is a need to increase the defense budget.

Where will the Finance Minister's focus be?

The policies of the central government are revolving around Made in India i.e. indigenisation. In such a situation, it is expected that Finance Minister Nirmala Sitharaman will focus on achievements such as boosting domestic production, indigenisation and exports to development of infrastructure on the border in the budget. She can also make efforts to increase it further