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China tensions push India into world’s top five defence spenders | India News

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NEW DELHI: India has joined the United States and China as one of the world’s five biggest military spenders, reflecting geopolitical tensions as well as the country’s reliance on imported weapons and sprawling personnel costs.

New Delhi’s defence spending rose by 5.5 percent to $63.9 billion in 2017 and has now passed France, the Stockholm International Peace Research Institute said in a report released on Wednesday.

Worldwide military spending rose marginally last year to $1.73 trillion, or roughly 2.2 percent of global gross domestic product, the group said. The list of the world’s biggest military spenders has remained consistent in recent years, dominated by the US and China, which spent $610 billion and $228 billion respectively, according to SIPRI, which researches global arms spending.

However, the group said the balance of military spending is “clearly shifting” toward Asia, Oceania and the Middle East, driven largely by spending increases in China, India and Saudi Arabia.

arms race

China spends far more on its military than any other power in Asia.

Beijing’s share of worldwide military expenditure rose to 13 percent in 2017 from just 5.8 percent in 2008, according to SIPRI. The Chinese government has increased spending 8.5 percent per year between 2007 and 2016 and its leaders “seem committed to increases in defence spending for the foreseeable future, even as China’s economic growth slows,” according to a US department of defence report on China’s military.

Forget 1962, India now better poised to deter the Dragon

“India does not want war. But if the push comes to shove, we are prepared. China has been forced to grudgingly accept that India is no pushover after repeatedly testing our resolve over the last few years, especially during the Doklam troop face-off,” a senior official said.


In India’s case, however, increased spending doesn’t mean the armed forces are deploying state-of-the-art equipment. The rise in defence spending mostly goes toward salaries and pensions for roughly 1.4 million serving personnel and more than 2 million veterans, said Laxman Kumar Behera, a research fellow with New Delhi’s Institute for Defence Studies and Analyses.

“Because so much money is consumed by manpower costs, there isn’t enough left over to buy equipment,” Behera said.

India’s own army echoes that sentiment. Vice-Chief of Army Staff Lt Gen Sarath Chand told a parliamentary committee in March the current budget barely accounts for inflation and tax payments. Only 14 percent goes toward military modernization compared to 63 percent for salaries, Chand said.


SIPRI previously ranked India as the world’s largest arms importer because its domestic defence manufacturing industry remains curtailed by red tape, a reliance on state-owned defence companies and procurement delays.

Faced with geopolitical threats from Pakistan and China, Prime Minister Narendra Modi has tried to boost domestic defence production with his ‘Make in India’ programme.

After Modi-Xi meeting, India-China hotline likely to cool down tense LAC

India and China are now looking to set up the long-pending hotline between the operations directorates of their central military headquarters, akin to the DGMO-level one between New Delhi and Islamabad, which was first proposed in the BDCA and then agreed to during Modi’s visit to China in 2015.

Yet, ministry of defence data released in response to a parliamentary question shows that procurement from Indian vendors has declined since 2014 — when Modi came to power — while procurement from foreign vendors increased slightly. Overall equipment procurement also dipped, the data shows.

Updated: May 2, 2018 — 2:40 pm

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