With the country having embarked on a drive to modernise the armed forces, the allocation for Defence continues to be more. It registered a 34 per cent hike in 2009-10, compared to previous financial year.
Of the Rs.1,41,703 crore allocated to the Defence Ministry, over Rs.54,000 crore was earmarked for capital acquisition and, considering the pace at which procurement orders were being processed, the government appears confident of spending the funds.
The defence market has grown in the last decade and the country is estimated to spend Rs.50,000 crore each year over the next five years. The big-ticket purchases include the 126 Medium Multi Role Combat Aircraft for the Air Force, field trials for which are progressing.
The government recently announced that it has finally put a price tag on aircraft carrier INS Vikramaditya (Admiral Gorshkov). Although no figures were quoted, the price negotiations have been concluded. The Russians hiked the price from the earlier contracted amount, demanding up to $2.9 billion.
Post Mumbai terror attacks, the government put acquisitions by the Coast Guard on a fast track to increase its fleet of surveillance aircraft and helicopters, besides interceptor boats and advanced offshore patrol vessels with additional manpower to go with it.
The Army’s plan to modernise artillery appears to be back on track after the move to procure ultra-light howitzers, being pursued through foreign military sales.
The procurement plan also includes tracked and wheeled self-propelled guns, multiple barrel long range rocket systems, cruise missiles and surveillance systems.
Major achievements in 2009 included the launch of the first indigenously developed nuclear-powered submarine, INS Arihant, and the commissioning of INS Airavat, third Landing Ship Tank designed for amphibious operations.
For the Air Force, the induction of first of the three Airborne Warning and Control System was a development described as a force multiplier. Radars and Aerostat acquisitions came along, as did the modern business jets for ferrying VVIPs.
The plan to procure helicopters for VVIPs in the current financial year has now taken shape, while the programme to seek a new trainer aircraft, besides attack and heavy lift helicopters, has also advanced.
Funds for R&D
With the emphasis on greater indigenisation to alter the current 70 per cent dependence on imports, funds for research and development is expected to see a rise.
In 2009-10, Rs.8,481 crore was earmarked for research and development, compared to Rs.7,737 crore in the previous financial year, though in terms of percentage of defence budget, it fell from 6.82 per cent in 2007-08 to 5.98 per cent in 2009-10, evoking the parliamentary standing committee recommendation for adequate allocation.
Overall, though it was a 34 per cent jump in defence allocation, in terms of percentage of gross domestic product, it has declined over the years - from hovering between 1.9 per cent (2007-08) to 2.42 per cent (2009-10).
