India needs to raise defence spending substantially

Global Military Powers are spending big on defence

- BY NANTOO BANERJEE

It is difficult to believe that India, the world's fourth largest economy by gross domestic product (GDP) and a major military power, ranks below even the tiny states of Kuwait and Greece when it comes to defence spending as a percentage of GDP.

Considering the tricky geopolitical situation in the south Asian region with China, India's No. 1 enemy increasingly surrounding the country with its growing economic and military control over Bangladesh, Sri Lanka, Maldives, Pakistan and Nepal, India does not seem to be spending enough on its defence in the face of a growing China threat. In terms of gross value, India's annual defence budget may not look that unimpressive, but it accounts for less than one-third of China's defence expenditure of nearly $267 billion. The US continues to be the biggest defence spender with a budget of $895 billion. Russia's defence budget is worth around $126 billion. India's defence budget is estimated at only around $75 billion.