WITHdefencespending–bothintermsofdealsandin
termsofpossiblecutsintheBudget–muchinthenews,
thequestion’sworthasking:Howmuch...
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Decoding India's defense spending...

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Where exactly does India spend its defense budget? Find out..

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Decoding India's defense spending...

  1. 1. WITHdefencespending–bothintermsofdealsandin termsofpossiblecutsintheBudget–muchinthenews, thequestion’sworthasking:HowmuchdoesIndiaspendondefence, anyway?AsTable1shows,accordingtoofficialstatistics,theshareof defencespendinginGDPhasdeclinedsteadilyafterliberalisation,witha particulardipaftertheUnitedProgressiveAlliancecametopower. Internationalbodiescontestthis,calculatingcomparativespendingacross countriesdifferently.AccordingtoTable2,Indiaspendsaboutasmuchon defenceasaproportionofGDPas,say,theUKorFrance.TheUPA’sinitial lowspendingcanpartlybeattributedtoahigherGDPdenominator,but notentirely.AsTable3shows,evenasaproportionofcentralgovernment spending,itdippedsharply.Inparticular,thisisduetoanunwillingnessto spendevenwhathasbeenbudgeted,perhapsforfearofcorruptionindef- encepurchases,thoughthatbegantoreverseafter26/11,asTable4shows. And,accordingtoTable5,itisinterestingtonotethat,inspiteofhigh-pro- filepurchasesforthenavyandtheairforce,inrecentyearsspending increaseshavefavouredalltheforcesnear-equally.Big-ticketcapital expendituremaynotbeasbigaproportionofjumpsindefencebudgeting assomeexpect.AsTable6shows,Indianarmsimportsactuallypickedup stronglyafter2008,withoneexception.Table7showswhichcountries benefitmostfromthearmsmarket.IndiadependsalotonRussia STATSGURU: DecodingIndia’sdefencespending Compiled by BS Research BureauStatsGuru is a weekly feature. Every Monday, Business Standard guides you through the numbers you need to know to make sense of the headlines Source: Budget documents of the Government of India Source: Export & Imports Bank of India 6: DEFENCEIMPORTSPICKEDUPAFTER2008,EXCEPTIN’10-11 Indiaimports:Armsandammunition,partsandaccessories ($mn) 7:BIGGESTARMSEXPORTERS Topcountries (in%) 3: DEFENCE’S SHARE IN CENTRAL GOVT SPEND HAS DIPPED Shareofdefenceexpenditureincentralgovernmentexpenditure (in%) Source: Budget documents of the Government of India 1: DEFENCE SPENDING PROPORTION DECLINES... Defenceexpenditure (%ofGDP) Table above shows how global arms imports are divided around the world. The percentage shows the country’s share of total world arms exports, for the period 2007–2011. Source: SIPRI*% share of 2012-13 spending Source: Annual Report 2011-12 (Ministry of Defence, Government of India) 5: SPENDING HAS FAVOURED ALL FORCES EQUALLY Service/department-wisebreak-upofdefenceexpenditure List is based on the Stockholm International Peace Research Institute Yearbook 2: ...BUT IT’S STILL COMPARABLE WITH UK OR FRANCE World’stop15militaryspenders Source: Budget documents of the Government of India 4: AFTER 26/11, DEFENCESPENDMORETHANBUDGETED Defenceexpenditureestimates (~cr)

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