With the latest Union budget keeping the MoD interim allocation unchanged, the MoD has an uphill task in managing its resources and in funding its modernisation programmes.
Research Fellow, IDSA, Dr Laxman Behera’s article on defence allocation in the new budget, titled, ‘Economic Situation to Weigh Heavily on Resource Allocation Decisions’ has been published by NDTV Profit on June 18, 2019.
The difficult situations that the economy is presently going through will weigh heavily on Finance Minister Nirmala Sitharaman’s resource allocation decisions, writes Dr Behera.
Implementing the outlined 27 reform measures in four broad areas – Planning, Defence Budget, Acquisition and Make in India – would strengthen defence preparedness and build a credible defence industrial base.
India needs a comprehensive space security architecture consisting of a dedicated Space Command for operational aspects as well as an exclusive Defence Space Research Agency to focus on scientific and technical aspects.
That the AK-203 would be produced in India with 100 per cent indigenous content in less than three years makes it a win-win deal for the Army and the Make in India initiative, with Ordnance Factory Korwa emerging as the biggest winner.
The eight per cent hike in the interim defence budget 2019-20 is bound to further intensify the resource problem of the MoD, which is already battling a massive shortage of funds.
The Brief argues that MoD’s total allocations should be considered for any discussion on defence expenditure since the official defence expenditure does not capture all the expenses that the government incurs on national defence efforts.
While the provisions of the Countering America’s Adversaries through Sanctions Act (CAATSA) are unlikely to be imposed on India anytime soon, it is nonetheless likely to prove a dampener on an otherwise booming defence relationship between India and the United States.
With the powerful DPC in place and the NSA assuming the role of de facto CDS for all practical purposes other than in operational matters, the defence planning process is expected to become more rational and provide a boost to defence preparedness.
The Draft Defence Production Policy 2018, which aims to promote the Make in India initiative in the defence sector and create a world-class arms manufacturing base, faces a number of challenges, which, if left unaddressed, may limit its usefulness.
Mission Shakti: What Next?
India needs a comprehensive space security architecture consisting of a dedicated Space Command for operational aspects as well as an exclusive Defence Space Research Agency to focus on scientific and technical aspects.