Defence budget 2021-2022

AMCA

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Defence Budget 2021 To See Unprecedented Hike Reflecting 5-year Modernization Plan

Defence budget 2021 is set to reflect a modernisation plan of Armed Forces for the next 5 years, likely to attract the highest ever hike in the upcoming budget

Written By
Shivani Sharma
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Defence Budget



Defence budget 2021 is set to reflect the modernisation plan of the Armed Forces for the next 5 years which is likely to attract the highest ever hike in the upcoming budget for the sector and a 2-year roll-on acquisition plan is also being made. Indian Defence forces are moving ahead with pace to become 'Atmnirbhar' with minimum dependence on foreign weapons, equipment and technology. In order to achieve self-reliance, Defence budget can be hiked to reach 6 lakh crore figure.
Chief of Army Staff General MM Narawane said on Tuesday that, "We had got the biggest chunk of the national budget that was,15 per cent of the national budget last year but this year situation being more demanding due to the ongoing tensions with China along the LAC, we expect to get a higher budget this year."
READ | BRO Deploys 67% Of Workforce In Northern Borders: Defence Min At Atal Tunnel Webinar
General Narawane also emphasized on the need for technological advancements that require a high budget. In view of the challenge of the China People's Liberation Army in Ladakh and the continued treachery of Pakistan along the Line of Control, a long-term outline of military preparations is being prepared in the Ministry of Defense's Military Department. After the creation of the post of Chief of Defense, the defence budget of this time will be allocated on the basis of the joint modernization roadmap of the three armies.
According to defence sources, in view of the ongoing tension along the border, there may be an unprecedented increase in the budget for the situation of war on two fronts. The Chief of Defense Staff has been supervising a 5-year Safeguard Modernization Plan. Not only this, a two-year annual roll-on plan is also being made under the Integrated Capability Development Plan to make arrangements to counter the enemy in the capacity of the three armies.
Talks are going on with the Finance Ministry to create a Defense Modernization Fund which gets carried out to next year in case it is not spent without getting lapse. The Ministry has emphasized that military procurement and construction of infrastructure facilities such as roads and bridges etc. goes on for a long time, so it is not possible to spend the budget in a year.
READ | Indian Navy To Conduct Second Edition Of Largest Coastal Defence Exercise 'Sea Vigil-21'
There have been indications that not only will the budget be arranged for the expenditure in the defence sector for one year but also according to the estimate of the next five years in the budget. It is estimated that this time there will be an unprecedented increase in the defence budget, giving a strong message to China.
A provision of Rs 4,71,000 crore was made in the defence budget for the year 2020-21, but in this,Rs 1,33,000 was only for pension. So there was only Rs 3,23,000 crore left for defence expenditure. There was also a provision of about Rs 1,00,000 crore for defence modernization.
The Ministry has sound reasons for more defence budget this time. The target is to complete the work of the integration of the three armies in the next 3 years. For this, these three new commands have to be created:
1.Defense space agency
2.Defense Cyber Agency
3.Military Forces Special Operations Division.
Two other commands whose blueprints are being prepared by involving the three armies are:
1.-Air Defense Command
2. -Sea Command
READ | India, Israel Successfully Test Medium-Range Surface-to-Air Missile Defence System
The Defense Ministry is also continuously working on reducing its pension budget which has increased from Rs 1,17,000 crore to 1,33,000 crore. Initiatives have been taken to increase the age of retirement of soldiers. According to defence sources, work is also underway on a scheme for the officers of the Short Service Commission so that the expenditure of pension on this head can also be eliminated.
However, India's defence budget remains nowhere compared to China. China has a defence budget of about $ 45 billion which is five times more than India's defence budget. Officially China's defence budget was said to be 167 billion dollars, but according to an estimate by the International Institute of Strategic Affairs, Sipri, the Chinese budget is more than 254 billion dollars.
Two major steps are also being taken for the in-house resources of the defence forces. A Defense Renewal Fund will be created in which funds will be raised from the monetization of defence sector land. Secondly, Rs 40,000 crore will be raised in the next 8 years through National Building Construction Corporation Limited on the lines of self-financing to build 80 thousand houses of soldiers.

Apart from this, the Ministry of Defense has leased land from governments in many states and the state governments require land for roads and other facilities.
These plans will be instrumental in strengthening the defence forces with the spirit of 'Atmnirbhar Bharat' .
 

Cruise missile

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Defence Budget 2021 To See Unprecedented Hike Reflecting 5-year Modernization Plan

Defence budget 2021 is set to reflect a modernisation plan of Armed Forces for the next 5 years, likely to attract the highest ever hike in the upcoming budget

Written By
Shivani Sharma
facebooktwitter
Defence Budget



Defence budget 2021 is set to reflect the modernisation plan of the Armed Forces for the next 5 years which is likely to attract the highest ever hike in the upcoming budget for the sector and a 2-year roll-on acquisition plan is also being made. Indian Defence forces are moving ahead with pace to become 'Atmnirbhar' with minimum dependence on foreign weapons, equipment and technology. In order to achieve self-reliance, Defence budget can be hiked to reach 6 lakh crore figure.
Chief of Army Staff General MM Narawane said on Tuesday that, "We had got the biggest chunk of the national budget that was,15 per cent of the national budget last year but this year situation being more demanding due to the ongoing tensions with China along the LAC, we expect to get a higher budget this year."
READ | BRO Deploys 67% Of Workforce In Northern Borders: Defence Min At Atal Tunnel Webinar
General Narawane also emphasized on the need for technological advancements that require a high budget. In view of the challenge of the China People's Liberation Army in Ladakh and the continued treachery of Pakistan along the Line of Control, a long-term outline of military preparations is being prepared in the Ministry of Defense's Military Department. After the creation of the post of Chief of Defense, the defence budget of this time will be allocated on the basis of the joint modernization roadmap of the three armies.
According to defence sources, in view of the ongoing tension along the border, there may be an unprecedented increase in the budget for the situation of war on two fronts. The Chief of Defense Staff has been supervising a 5-year Safeguard Modernization Plan. Not only this, a two-year annual roll-on plan is also being made under the Integrated Capability Development Plan to make arrangements to counter the enemy in the capacity of the three armies.
Talks are going on with the Finance Ministry to create a Defense Modernization Fund which gets carried out to next year in case it is not spent without getting lapse. The Ministry has emphasized that military procurement and construction of infrastructure facilities such as roads and bridges etc. goes on for a long time, so it is not possible to spend the budget in a year.
READ | Indian Navy To Conduct Second Edition Of Largest Coastal Defence Exercise 'Sea Vigil-21'
There have been indications that not only will the budget be arranged for the expenditure in the defence sector for one year but also according to the estimate of the next five years in the budget. It is estimated that this time there will be an unprecedented increase in the defence budget, giving a strong message to China.
A provision of Rs 4,71,000 crore was made in the defence budget for the year 2020-21, but in this,Rs 1,33,000 was only for pension. So there was only Rs 3,23,000 crore left for defence expenditure. There was also a provision of about Rs 1,00,000 crore for defence modernization.
The Ministry has sound reasons for more defence budget this time. The target is to complete the work of the integration of the three armies in the next 3 years. For this, these three new commands have to be created:
1.Defense space agency
2.Defense Cyber Agency
3.Military Forces Special Operations Division.
Two other commands whose blueprints are being prepared by involving the three armies are:
1.-Air Defense Command
2. -Sea Command
READ | India, Israel Successfully Test Medium-Range Surface-to-Air Missile Defence System
The Defense Ministry is also continuously working on reducing its pension budget which has increased from Rs 1,17,000 crore to 1,33,000 crore. Initiatives have been taken to increase the age of retirement of soldiers. According to defence sources, work is also underway on a scheme for the officers of the Short Service Commission so that the expenditure of pension on this head can also be eliminated.
However, India's defence budget remains nowhere compared to China. China has a defence budget of about $ 45 billion which is five times more than India's defence budget. Officially China's defence budget was said to be 167 billion dollars, but according to an estimate by the International Institute of Strategic Affairs, Sipri, the Chinese budget is more than 254 billion dollars.
Two major steps are also being taken for the in-house resources of the defence forces. A Defense Renewal Fund will be created in which funds will be raised from the monetization of defence sector land. Secondly, Rs 40,000 crore will be raised in the next 8 years through National Building Construction Corporation Limited on the lines of self-financing to build 80 thousand houses of soldiers.

Apart from this, the Ministry of Defense has leased land from governments in many states and the state governments require land for roads and other facilities.
These plans will be instrumental in strengthening the defence forces with the spirit of 'Atmnirbhar Bharat' .
KLPD alert 🚨🚨
 

Vishalreddy3

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Interesting!!! Rocket force in Indian Armed Forces?? I think it's better that all three defence forces have separate "rocket force" of their own and have Full autonomy over it.
I also think it would be wise to raise a Marine Corps.
 

FalconSlayers

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Interesting!!! Rocket force in Indian Armed Forces?? I think it's better that all three defence forces have separate "rocket force" of their own and have Full autonomy over it.
I also think it would be wise to raise a Marine Corps.
China played well, they did this misadventure so that we panic buy, increase defence budget so that the budget for development that increases economy gets consumed and stunts our economic growth, seems like private funding for development should become a necessity now.
 

Okabe Rintarou

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Interesting!!! Rocket force in Indian Armed Forces?? I think it's better that all three defence forces have separate "rocket force" of their own and have Full autonomy over it.
I also think it would be wise to raise a Marine Corps.
Why the heck do we need a rocket force now? Raise more Artillery Divisions. Why increase nonsense bureaucracy by creating new arms of Army? The aim rn is to cut the flab.

With I Corps' Cockerel and Red Eagle divisions moving to Ladakh as a Strike Corps and 17 Strike Corps receiving another division (apart from 59th Div, from god knows where) and moving to Eastern Command, we now have need of two more Artillery Divisions.
Plus, the 33rd Armoured Division and 42nd Artillery Division that are freed from split up of I Corps can be moved to X Corps to convert X Corps into a Strike Corps. That way, we'll be able to retain three Strike Corps in plains and have two for the mountains. Although not sure if IBG concept retains the Sunderji doctrine as an option. All this talk of copying China to counter China is nonsense.


Also, right now, we don't have the resources to raise a Marine Corps. We don't even have the resources to raise the 72nd Division meant to be a part of 17 Strike Corps. No point splurging on a Marine Corps at this point. We are not Americans.
 

Vishalreddy3

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Why the heck do we need a rocket force now? Raise more Artillery Divisions. Why increase nonsense bureaucracy by creating new arms of Army? The aim rn is to cut the flab.

With I Corps' Cockerel and Red Eagle divisions moving to Ladakh as a Strike Corps and 17 Strike Corps receiving another division (apart from 59th Div, from god knows where) and moving to Eastern Command, we now have need of two more Artillery Divisions.
Plus, the 33rd Armoured Division and 42nd Artillery Division that are freed from split up of I Corps can be moved to X Corps to convert X Corps into a Strike Corps. That way, we'll be able to retain three Strike Corps in plains and have two for the mountains. Although not sure if IBG concept retains the Sunderji doctrine as an option. All this talk of copying China to counter China is nonsense.


Also, right now, we don't have the resources to raise a Marine Corps. We don't even have the resources to raise the 72nd Division meant to be a part of 17 Strike Corps. No point splurging on a Marine Corps at this point. We are not Americans.
Just a point to note, raising a marine corps doesn't take much money since we already have a lot of resources, the only place where other countries face problems raising a MC is the man power, which we have abundance of it. Unlike America, we are only gonna use our, MCs as Naval Infantry units not expeditionary purposes.
 

Okabe Rintarou

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Just a point to note, raising a marine corps doesn't take much money since we already have a lot of resources, the only place where other countries face problems raising a MC is the man power, which we have abundance of it. Unlike America, we are only gonna use our, MCs as Naval Infantry units not expeditionary purposes.
Contrary to popular belief, we don't have abundance of manpower. Army HQ is finding it difficult to even raise one Division size formation. As a result, four/five Divisions are being removed from India-Pakistan front. Two of them are being sent to Ladakh. One/Two to Uttarakhand and one more to Eastern Command.

We can't hope to remove any more formations from the Pakistan front.

Meanwhile, you are talking about raising an entire new Corps, which would be two divisions in size at least. And since we can't get any more men from existing formations, we will have to induct more soldiers to raise this new Corps. So who will foot the bill of paying 20,000 more soldiers? Navy? Their capital expenditure is already at a paltry $3 Billion. Army? Same story: CAPEX of $3 Billion and already cursing its ballooning revenue expenditure insomuch that it is unable to raise even one more Division, let alone two.


Even if we did have a Marine Corps, it wouldn't matter because we don't have the ships to move such two entire Divisions. All we have are around 12-14 LCU, 5 LST and one LPD. The current set up of Indian Army deputing 91st Infantry Brigade for the role of amphibious operations is sufficient.
 

DownWithCCP

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China played well, they did this misadventure so that we panic buy, increase defence budget so that the budget for development that increases economy gets consumed and stunts our economic growth, seems like private funding for development should become a necessity now.
Quite the opposite China fucked up pretty badly, if the reports are true it woke up an elephant deep in slumber, with every passing year defense budget as a %age of GDP went on decreasing or remained stagnant as a result of which the armed forces couldn't meet their requirements for a 2 front scenario or for any offensive operations. Modi personally felt that the era of wars was over and that he could(like every leader thought he could) smoothen things out with Pakistan and China through his new approach of "personalized diplomacy", the realization of the hopeless nature of Pakistan came in quiet early but Modi still did not believe that war could take place even more of a remote possibility in his mind was a 2 front scenario, he thought that he could keep China at bay through economic engagements which China will find too costly to forgo. Even the Doklam crisis was brushed under the carpet as a mere misunderstanding which was later sorted out at the sidelines of the BRICS Summit. The turning point came either during the beginning of the standoff in April or surely after the Galwan incident, with the LAC turning hot Pakistan too tried a misadventure(Nagrota encounter) that was successfully thwarted. The dreaded and inconceivable 2 front scenario was slowly being realized, what was once viewed very casually suddenly manifested itself into reality this year. This is when the Indian establishment woke up and actually smelt the coffee, the 2 front scenario was indeed quite real and urgent steps needed to be taken with a 2 front scenario in mind. The dedication of an entire strike corps against china is one of the many steps being taken as a result of this new found realization.
The standoff has hopefully made the Indian establishment realize the following:
1) Importance of local manufacturing.

2) Defense expenditure.

3) Importance of private players.

4) Allocating budgets befitting the current 2 front scenario

So unlike your assessment, China in my opinion has messed and messed up quiet grandly this time, your assessment would've been correct had the government not done anything about the standoff, it would've been a massive victory for the PLA and would've ensured that India was incapable of defending its borders but quiet the opposite has happened, after our initial hiccups we have responded in manner in which the CCP/PLA top brass never expected and an unprecedented increase in our defense budget just confirms the fact.
 

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China played well, they did this misadventure so that we panic buy, increase defence budget so that the budget for development that increases economy gets consumed and stunts our economic growth, seems like private funding for development should become a necessity now.
We already spend too less in defence I would not mind if some freebies are stopped for this.
 

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Mass order K21 and our home made Kestrel. Mechanize our army.
Invest more on SAMs and other air defence systems.

Order 150 more rafale.

To balance it out, don't go for another stobar carrier. Once modernization is done, we can go far catobar.
 

Cruise missile

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Mass order K21 and our home made Kestrel. Mechanize our army.
Invest more on SAMs and other air defence systems.

Order 150 more rafale.

To balance it out, don't go for another stobar carrier. Once modernization is done, we can go far catobar.
It's better to complete the pending deals first rather than going for new ones.
 

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Just go through it.
Went through the list. Some of those deals are what I said earlier. Barak missiles, air defence guns all come under air defense corps, right?

If you ask me, I would cancel both MiG and MKI upgrades and focus on acquiring as many rafale as possible. May be if we give big order, they can set a new time frame and deliver more of them in short time.

Rest of the deals are regular ones. You don't have to do any special focus on them.
 

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Went through the list. Some of those deals are what I said earlier. Barak missiles, air defence guns all come under air defense corps, right?

If you ask me, I would cancel both MiG and MKI upgrades and focus on acquiring as many rafale as possible. May be if we give big order, they can set a new time frame and deliver more of them in short time.

Rest of the deals are regular ones. You don't have to do any special focus on them.
MKI should be upgraded , additional order of 36 rafale should be given and mmrca 2.0 should be scrapped.

Order of 83 mk1a, LUH, LCH and C295 should be given immediately. Plus R&D budget should also be increased since this decade is very important to us.
 

DivineLight

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MKI should be upgraded , additional order of 36 rafale should be given and mmrca 2.0 should be scrapped.

Order of 83 mk1a, LUH, LCH and C295 should be given immediately. Plus R&D budget should also be increased since this decade is very important to us.
MKI uprade without engine upgrade is eyewash upgrade. We will burn all cash on those upgrades and will face same situation in 2030 too.

About mk1a. It is still at design phase. Our DPSUs and other agencies are known for sending us on empty ride for years. World won't wait for our eventual catch up. We need to go for basic requirements first. And then go for home made adventures. If DPSU really want boost, they can make missiles that can be fired from MKI and Rafale.

With our 5 year cycles, we can't have more than 5 years long term goals. Our forces can't wait for eventual modern equipment.
 
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dude00720

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MKI uprade without engine upgrade is eyewash upgrade. We will burn all cash on those upgrades and will face same situation in 2030 too.

About mk1a. It is still at design phase. Our DPSUs and other agencies are known for sending us on empty ride for years. World won't wait for our eventual catch up. We need to go for basic requirements first. And then go for home made adventures. If DPSU really want boost, they can make missiles that can be fired from MKI and Rafale.

With our 5 year cycles, we can't have more than 5 years long term goals. Our forces can't wait for eventual modern equipment.
"Mk1A is in design phase". Who are you, My Dear Sir?
 

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