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China’s Defence Budget 2012: An Analysis

Major General Mandip Singh was formerly a Senior Fellow at the Manohar Parrikar Institute for Defence Studies and Analyses, New Delhi. Click here for detailed profile.
Lalit Kumar, Associate Member of IDSA, is a senior corporate executive and international management consultant. An alumnus of IIT-Delhi and IIM-Kolkatta, he is also a student of geopolitics and strategic affairs.
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  • March 28, 2012

    China’s Defence Budget for 2012 continues to follow anticipated trend lines in keeping with its plan of carrying out Revolution in Military Affairs in a calibrated, coordinated and comprehensive manner. The actual figures of the Chinese Defence budget continues to be a source of conjecture and no standard factors can assist in accurate prediction of the real expenditure. The allocation for 2012 appears to suggest that ‘it is business as usual’ for the PLA, although there are reports of a substantial rise in salaries and expenditure on improving the living standards even as it finds new ways to woo young men and women to join the PLA. It would be prudent to assume that the bulk of the monies will be directed at ensuring domination of the Asia- Pacific by developing its ‘ Anti-Access Area Denial’ strategies while building on a nascent expeditionary capability for power projection and protection of its interests globally. As far as India is concerned, we will see no let up in the momentum of infrastructure development in the TAR and the possible establishment of the PLA`s first base overseas in the Indian Ocean in the near future.

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