According to 2009-2010 Union Budget which was presented by Pranab Mukherjeee, defence expenditure was increased to Rs.141, 703 crore ($28 billion). This was a 34 per cent hike in defence budget compared to the previous year. The reason cited for the hike was that security “threshold has been crossed” with the Mumbai terror attacks. It is understandable that such a measure was adopted by the ruling heads taking into account India’s not so friendly relations with its neighbours. Very often though, the actual expenditure is significantly higher than the proposed allocation.
India’s defence budget for 2010-2011 is 1.5 trillion rupees ($32.5 billion), a 40 percent increase from two years earlier. The alarming increase in defence budget and expenditure has now made India the largest importer of arms. According to a study conducted by the Stockholm International Peace Research Institute (Sipri), India has over taken China, South Korea and Pakistan as the largest importer of weapons. The study also shows that India spent about $37 billion in 2009 when the proposed amount was only $28 billion.
The rise in expenditure has been discussed extensively especially because more than three quarters of India’s 1.2 billion people live on less than Rs. 100 ($2) a day. But this issue seems to have been pushed back following frequent encroachments from the Chinese side in Arunachal Pradesh and China’s close ties with Pakistan. Siemon Wezeman, a Sipri researcher, says: “It’s worrying from the fact you are bringing a lot of weapons into an area that isn’t particularly stable, where you’ve got countries that have been at each other’s throats.”
The increase in expenditure on defence also reveals that India wants to emerge as a superpower to counter China. India’s weapon import accounts for 9 per cent of all imports from 2006 to 2010. China went down by a place as it has started manufacturing its own weapons.
In the race to become the next superpower in the sub continent, India plans to buy 126 fighter jets, 200 helicopters and large amphibious landing ships. It has been estimated that India’s annual defence expenditure will cross $50 billion in the next five years.
While India is on a weapons acquisition spree, foreign weapons giants like Russia and America have found their perfect buyer. For the American economy, India’s decision to buy weapons has proved advantageous to the economy which was hit by recession. With the aim to boost U. S exports to India, U. S Commerce Secretary Gary Locke will be visiting India in March. He will be accompanied by the leaders of 24 U.S weapons companies who are hoping to strike a deal with weapon-hungry India.
Spending billions of dollars on weapons at a time when the Indian economy is performing considerably well might seem acceptable. However, the expenditure on these weapons does not stop with just buying them. Their maintenance costs are high and so the cycle of this large scale spending continues. India’s paranoia of an attack from either China or Pakistan will cost the citizens tens of billions of dollars a year for a very long time.