Union Budget 2025: Defense Spending Slated to Remain Constant

India's defense spending for the upcoming fiscal year is projected to remain constant at around 1.9-2% of GDP, a trend consistent with recent years. While this maintains fiscal stability, concerns have been raised about its adequacy in addressing escalating external threats.

Defense Secretary Rajesh Kumar Singh emphasized the importance of prioritizing resource allocation within the existing budget, acknowledging that the current expenditure already pushes the limits of domestic industry's absorptive capacity.

Geopolitical strategist Velina Tchakarova highlighted the significant gap between India's defense spending and that of major powers like the US, China, and Russia. This gap restricts India's ability to project power effectively, particularly in the face of China's rapid military expansion in the Indo-Pacific region.

India's plans to acquire advanced fighter jets and strengthen its naval capabilities demonstrate its ambition for strategic reach, but budget constraints pose a significant challenge to the realization of these goals.

Furthermore, the share of defense spending in India's total budget has been steadily declining, reaching its lowest point in decades. While this reflects fiscal prudence, it raises concerns about the country's ability to effectively counter external threats.

The focus now shifts towards optimizing resource allocation and maximizing the impact of existing defense expenditure to address the evolving security challenges facing India.