All Things Policy
Breaking Down India’s Defence Budget 2025-26
Feb 14, 2025
Anushka Saxena, a staff researcher for Indo-Pacific Studies at Takshashila, breaks down India's defense budget for 2025-26. She highlights the challenges of balancing military modernization with rising pension costs. The Agni Veer scheme is discussed as a solution to mitigate these liabilities. Anushka compares India's military spending trends to those of China and Pakistan, revealing implications for regional security. Their conversation explores how strategic priorities shape India's defense posture amidst evolving geopolitical dynamics.
32:23
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Quick takeaways
- India's defense budget allocation reflects a strategic shift towards diplomacy and economic interdependence despite rising security challenges from neighboring countries.
- The significant portion of the budget directed towards operational costs raises concerns about the long-term sustainability of military modernization efforts.
Deep dives
Understanding India's Defense Budget Allocation
India's defense budget for 2025-26 allocates 6.8 lakh crore rupees, which constitutes less than 2% of the estimated GDP, indicating a shift in spending priorities. This is part of a trend of declining defense budget allocation relative to GDP over the years, suggesting that the government may prioritize non-military tools like diplomacy and economic interdependence when addressing national security challenges. The capital outlay, vital for military modernization, is pegged at 1.8 lakh crore, but most of this will go towards committed liabilities rather than new acquisitions. These figures raise questions regarding whether India's defense spending reflects a commitment to enhancing military readiness in the face of evolving threats.
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