It's more complicated than that. While freezing is an extreme solution, understand this...the bulk of the defence budget goes to paying salaries and pensions. Out of what's left, you have to make do for routine expenses leaving negligible amount for any major new purchase. The problem is everyone wants this, this and that...no one has any idea of how we are going to get the money and no one wants to take harsh decisions whatsoever.
This situation on the Chinese border will spur some immediate action but the long term situation is very tough.
Whenever we talk of such problems we never look around and see what others do. If I draw attention towards our neighborhood, nothing much can be learnt but western democracies and USA have been maintaining large Armed Forces and spend much more in payment to their soldiers.
India is the only state with 2/3 of its land boundaries not settled and disputed. We are also surrounded by a hostile neighbourhood. We are a nation that is nascent and in the process of national building with huge internal upheavals.
But India unlike China or Pakistan is not a Security state but a strong Police state. Our overall Police Force strength is two times that of the Army but still not sufficient. The Police forces are increasingly getting militarised.
In such a situation Indian system must establish a link between the Defence Forces and Police Forces in India. India has to maintain a standing Army but that Army can be composed of personal who serve in the Armed Forces for a very short period of time. There is no harm in introducing compulsory military service.
Another option is that all those who get recruited into police serve for five to seven or ten years in the Army and then are transferred into police. The rotation can be maintained based on the rate of retirement from the police services.
This method will enable India to maintain standing Army as also standing police services but nullify pensionary liability of MoD. The pay and perks remain the same as today but there is no pensionary liabilities as all would be under NPS.
Military people are definitely required pension when retired between the age group of 34 - 40 and not provided alternative employment whereas all others are allowed to serve till 56 -60 years of age. It is a social and national responsibility.