Same in US, soldiers who joins military at 17 yoa, can retire with 50% salary at age of 37 and 100% retirement at age of 47. Plus retirement brings additional benefits like free medical and perks.One-third of this spending goes to maintain overbloated military pension which does not enhance military capability. So India's real defence budget should be no more than $45-50 billion. No other country spend this much for military pension like India. India has policy to give retirement at 35 years of age for common soldiers. Given that India's has to maintain an army 1.2 million strong, this early retirement policy created a lot of pensioners. The logic behind this early retirement is to 'keep army youthful'. So, most of defence budget of India is being spend on salary, pension and other benefits leaving little for arms procurement. According to various sources, 70 percent of Indian defence equipments are obsolete. So, $72.9 billion defence spending actually does not translate into proportionate military power. This is why Pakistan despite spending just 1/7th of Indian defence budget on military, keeping up military power balance with India.