Who is this modernisation against? China of course.
China will be watching very carefully any Indian increases in defence spending. They have 5 times larger GDP than India, actually larger in defence since they make nearly all their own weapons unlike India that has to import at higher prices, and will just rack up their spending to compensate. It does not hurt them as much as their GDP is so much larger than India's.
India should follow China's example in the 1980s and 1990s and use a bare-bones approach to defence and focus on the economy. In fact I would argue that defence spending should be reduced to 1% of GDP and the extra money ploughed into the economy.
Only much stronger economic growth will help India in the long-run.