Operation Sindoor and Defence Budget Overview
Operation Sindoor has significantly influenced this year's defence Budget, set at ₹7.85 trillion, marking 2% of India's GDP. This increase reflects the need for India to be better prepared for a potential two-front war with China and Pakistan. A major portion of this budget is allocated to capital expenditure and modernization efforts.
Key Allocations and Changes
- Capital Expenditure:
- ₹2.2 trillion allocated for FY27, reflecting the need to replace materiel lost during past skirmishes and to facilitate fast-track emergency procurements.
- Modernization Budget:
- 24% increase for FY27 aimed at enhancing air defence, naval undersea capabilities, and long-range standoff weapons.
- Salaries and Pensions:
- Pensions share reduced to 22% from 26% in FY20.
- Salary component decreased to 22.4% from 30% in FY20, potentially influenced by the Agneepath scheme.
Domestic Procurement and Industry Challenges
- 75% of the modernization budget earmarked for domestic procurement under the "Atmanirbhar Bharat" initiative.
- Challenges include slow delivery timelines by indigenous manufacturers, exemplified by delays in Tejas Mk1A fighters.
Future Goals and Concerns
- The aim is to increase defence expenditure to 2.5% of GDP over the next five years.
- Focus on practical spending, such as integration of military platforms and boosting Air Force squadrons to full strength, is crucial for operational efficiency.
- Opportunity for domestic manufacturers to improve delivery capabilities and technical efficiencies.
