note that total indian government revenue is 130 billion. fully 1/4 of the indian government budget goes to war preparations.
I ran a quick calculation based on the numbers from the finance ministry website
GOI Tax Income: $163 Billion USD
Non-Tax Income: $32 Billion USD
Total Planned Expenditure: $242 Billion USD (Deficit)
Military Budget: $36 Billion USD
Unless I'm missing something else, the defense budget is 14.87% of GOI's total expenditure
In addition, I know for a fact that a major chunk of the military budgets are actually returned every year since the armed forces do not end up using their yearly allocations. Furthermore, most of the increases are going towards higher pay scales for military personnel, long due up-gradation of current equipment. Capital purchases are still very low relative to other major powers.
Another point to note is that these numbers are after our 30% increase in military allocation in response to the mumbai attacks, I therefore find it justified to spend a little bit higher percentage (less than 5%more) than China since we have active threats in our environment.
Bottom-Line:
>I wouldn't call these war preparations, defensive measure is more apt.
>By numbers, China is still far ahead relative to India. Which I find justified since you guys feel a threat from the US.