Beijing: China has increased its defence budget by 7.2% to $249 billion (1.78 trillion yuan). The amount is almost triple India’s military expenditure of $79 billion. While Beijing keeps increasing its military prowess, it is also strengthening its role in the world power dynamics.
Hidden Costs and Actual Spending
Defence analysts suggest that China’s actual military spending could exceed the official announcements by 40-50%. The nation is particularly known for spreading its defence costs across various sectors, so its reported expenditure looks lower than the actual figure.
World Comparison
China has the second-largest defence budget in the world, after the United States. But the U.S. military expenditure is about $950 billion—nearly four times that of China.
To consolidate its strategic reach, China has been increasing its military presence in the Indo-Pacific and building up its capabilities in the army, navy, air force, nuclear capability, space, and cyber defence.
The modernisation of the People’s Liberation Army
With a standing army of two million soldiers, the People’s Liberation Army (PLA) is also modernising quickly. China has made deterring foreign interference in Taiwan and claiming supremacy in the South China Sea and East Asia its top priorities.
India’s defence challenges and budget utilisation
India’s current defence budget is 1.9% of its GDP. Experts suggest raising this budget to at least 2.5% to effectively counter threats from both China and Pakistan.
India’s defence budget breakdown:
75% of the budget goes towards salaries and pensions of military personnel.
The armed forces receive only 25% of their funding for modernisation.
Challenges faced by the Indian Air Force
The Indian Air Force (IAF) needs 42 fighter squadrons but only has 31.
We are about to retire two MiG-29 Bison squadrons, bringing the total down to 29.
It will take at least 234 new fighter aircraft to fill the operational gap.
China’s Growing Nuclear and Naval Power
China has more than 600 nuclear warheads operational, a number expected to rise to over 1,000 by 2035. The nation boasts of the world’s biggest navy, with more than 370 warships and submarines.
Technological Developments: China and India
Whereas India is producing fourth-generation Tejas fighter aircraft, China has already deployed fifth-generation J-20 stealth aircraft and is developing sixth-generation models.
Is India required to raise its defence budget?
With China’s swift military buildup and increasing regional hegemony, India needs to give top priority to defence modernisation. Experts emphasise that, if India wishes to counter both China and Pakistan’s possible threats, raising its defence budget to at least 2.5% of GDP is a must.