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India's defense budget is modest at only 1.8 % of its GDP

Veeru

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Oct 12, 2010
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India's defense budget is modest at only 1.8 % of its GDP


India will spend 1.8 % of its GDP on defence this fiscal, :hitwall::hitwall: the Union Budget for 2011-12 revealed.

Experts, however, said defence spending ought to have been around 3% of the GDP, seen in the backdrop of China’s rising military might.


Finance minister Pranab Mukherjee allocated a budget of Rs 1,64,415 crore to the armed forces, out of which R69,199 crore has been set aside for buying weapon systems and platforms.

The 11.5 % hike in defence spending over last year’s outlay of Rs 1,47,344 crore has been dubbed marginal by experts. The allocation includes a revenue expenditure of Rs 95,216 crore for meeting day-to-day expenses of the military.

China’s official defence budget for 2010 stands at $78 billion, but the Pentagon estimates its actual military spending to be upwards of $150 billion. The Communist neighbour is investing heavily in a range of capabilities.

Strategic affairs expert Air Vice Marshal Kapil Kak (retd) said, “The hike is hardly adequate to meet the military’s rising responsibilities in view of the feverish pace of China’s military modernisation.

India’s defence modernisation gathered steam only during the last three to four years. Much needs to be done to build offensive capabilities in the long term.”

Modest hike in defence spending - Hindustan Times
 
I wonder how they are calculating the above figure of 1.8%.
In 2010 Indian defence spending was 2.35% of the GDP.

But in 2010 Indian economy grew by 8.6% and inflated by 8.3%..so real GDP grew by 16.9%...however this yr defence spending was increased by only 11.5% hence??
 
I wonder how they are calculating the above figure of 1.8%.
In 2010 Indian defence spending was 2.35% of the GDP.

But in 2010 Indian economy grew by 8.6% and inflated by 8.3%..so real GDP grew by 16.9%...however this yr defence spending was increased by only 11.5% hence??

As per estimate India's GDP will be around US$ 1800 billion or 1.8 trillion for next fiscal for which the defense budget is presented.
 
Well I guess they're planning to invest in a lot of schemes this year as opposed to defence. What pisses me off is every year they give us a tax break of 5% more.. And people are happy! The retards do not understand that inflation was at 9%
 

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