India’s Defence Budget Dynamics: Budget Outlay and the Question of Imbalance

The evolution of cutting-edge technologies such as Artificial Intelligence (AI), the Internet of Things (IoT), Unmanned Aerial Vehicles (UAVs) and standoff weapons have presented new challenges to defence and security systems worldwide. The evolving nature of technological and information warfare has expanded the horizon of modern-day conflict and compelled all nations to re-evaluate and rethink their Research and Development (R&D), defence policies, expenditure and technological capabilities. In this endeavour, the process of capacity and capability enhancement of the Indian Armed Forces is one major obstacle that India encounters, considering its large number of troops. The salaries, pensions, maintenance and other expenses consume nearly 70 per cent of India’s defence budget, leaving insufficient funds for other sectors that require more investment. In this study, we have attempted to address the imbalance of India’s defence expenditure with respect to modern-day technological advancement and threat perceptions. The study argues that the synergy between manpower and technology, which is vital for India’s national security, can be attained by understanding the noteworthiness of defence expenditure, the large size of troops and the capital outlay incurred on them.

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