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Paper elephant : India spends a fortune on defence and gets poor value for money

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Paper elephant India: spends a fortune on defence and gets poor value for money
The country’s millions of men and women in uniform wield mainly Soviet weapons
Mar 28th 2018 | DELHI
IN FEBRUARY India quietly passed a milestone. The release of its annual budget showed that defence spending, at $62bn, has swept past that of its former colonial master, Britain. Only America, China, Saudi Arabia and Russia lavish more on their soldiers. For nearly a decade India has also been the world’s top importer of arms. In terms of active manpower and the number of ships and planes, its armed forces are already among the world’s top five.

Measured by ambition, India may rank higher still. Its military doctrine envisages fighting simultaneous land wars against Pakistan and China while retaining dominance in the Indian Ocean. Having revealed its nuclear hand in 1998 with a series of tests, India has developed its own ground-hugging cruise missiles and is trying to perfect submarine-launched intercontinental ones, too. Since the Hindu nationalist party of the prime minister, Narendra Modi, took power in 2014 it has also adopted a more muscular posture. Last summer it sparred with China atop the Himalayas in the tensest stand-off in decades. It has also responded to cross-border raids by militant groups from Pakistan not with counterinsurgency tactics and diplomatic ire, but with fierce artillery strikes against Pakistani forces.

Yet a growing chorus of Indian officers, civilian officials and defence analysts appears less than impressed by all this seeming toughness. In mid-March their long-muted criticism burst into the open. Summoned before a parliamentary committee on defence, India’s service chiefs revealed not only dire shortfalls in equipment and investment, but mounting frustration with a pettifogging civilian defence bureaucracy and the government’s penny-pinching ways. Subsequent public debate has gone further, questioning not only poor resource allocation but also the armed forces’ own failure to reform, restructure or revise doctrine.

Judging from the three services’ own testimony, the airing of such grievances is long overdue. MPs were told that some 68% of the army’s equipment, much of which was first supplied by the Soviet Union, such as BMP-2 personnel carriers and Shilka anti-aircraft guns, may be described as “vintage”. Only 8% could be considered state-of-the-art. “To be prepared for...a two-front war, the huge deficiencies and obsolescence of weapons, stores and ammunition existing in the Indian army do not augur well,” said the army’s report.

In its own commentary the committee noted, by way of example, that despite its having repeatedly raised the matter for a decade, the army had still failed to provide soldiers with adequate body armour. The other services are no better: antiquated MiG-21 fighter jets still patrol the skies and the navy’s shipbuilding programme is a decade behind schedule.

Despite Mr Modi’s chest-thumping, the defence budget has actually shrunk over the past decade as a proportion of GDP and is far below China’s in dollar terms (see chart). More tellingly still, the share of it devoted to capital expenditure has slipped dramatically: for the navy this dropped from 13% in 2014 to below 8% last year; for the air force from nearly 18% a decade ago to below 12% in 2017. A sharp pay rise means that personnel costs will eat up 63% of the army’s budget this year.
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If pensions are included, some three-quarters of the overall defence budget will be consumed by salaries and benefits, leaving scant funding for procurement, let alone such luxuries as research and development. Small wonder that foreign investment in the defence industry, touted as a centrepiece of the government’s Make In India campaign to boost domestic manufacturing, amounted to less than $200,000 from 2014 to 2017, out of some $60bn of FDI in 2017 alone.

There are also doubts about how India’s men and women in uniform are being used. Despite increasing pressure on Pakistan, for instance, the number of cross-border violations counted by India has gone up dramatically, from 152 in 2015 to 860 last year, with a consequent rise in casualties on both sides and no movement towards resolving disputes. The number of intrusions from China also rose from 273 in 2016 to 426 last year. India’s refusal last summer to permit Chinese road-building in a patch of disputed Bhutanese territory showed strong nerves, yet what became known as the Doklam incident has not prevented China from massively reinforcing its position in the area.

Brahma Chellaney, a hawkish Indian security expert, noted in an acerbic commentary that Doklam “illustrates that while India may be content with a tactical win, China has the perseverance and guile to win at the strategic level.” The struggle to counter Chinese political and economic encroachment even in zones where Indian influence has seldom been challenged, such as Nepal and the Maldives, also suggests difficulties in projecting influence.

Some of the weakness may be due not to the size of India’s forces, but to their shape. Despite numerous expert reports, internal military recommendations and committee findings calling for integrating both India’s central and regional commands, its army, navy and air force have maintained rigidly independent structures. Whereas China recently streamlined its operational forces into five broad regional commands, India maintains 17 separate single-service local commands.

Meanwhile the defence ministry, which calls the shots on such vital questions as procurement and promotions, is staffed with career bureaucrats and political appointees who lack not only technical knowledge but also, grumble ex-servicemen, much sympathy for people in uniform. Mao Zedong, who foolishly derided America as a “paper tiger”, might have applied similar words to the southern adversary his country faces today.

https://www.economist.com/news/asia...ld-mainly-soviet-weapons-india-spends-fortune
 
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Our economy is smaller as compared to china, so there cannot be direct comparison.
 
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China spent a tiny share of her GDP on defense during the 1990's , that gave China a free hand focusing on developing the economy. Chinese army used to be very backward and poorly equipped with WW2 weapons until this century.
 
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The article was written by a clown.

Our import rate has been dropping like crazy and is set to drop even more over the next 3 years.
 
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Can you provide a source for that?

https://www.export.gov/article?id=India-Defense
According to the GoI, India imports approximately 60% of its defense requirements.

It used to be over 70% before Modi. The govt wants to reverse the 70:30 imports to indigenous ratio to 40:60 before their first term ends. It may or may not be met, but it's been reversing.

The objective outlined in 2016:
https://www.thehindubusinessline.co...ut-defence-imports-by-3540/article8626685.ece
Acquisitions made earlier cannot be changed today. I cannot even change acquisitions that are in the pipeline now. The value of this is ₹5 lakh crore, which will slowly taper off. So every year my target is to increase indigenous content by 5-10 per cent. Our final target will be 35-40 per cent, which can be done quickly. After that it will slow down.

All our current projects are aimed to be indigenous or through JVs.
 
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Our economy is smaller as compared to china, so there cannot be direct comparison.
wooowww!!!!! you talking sense i am impressed! how does it feel not thumping chest and using brain cells?
 
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With so much talk about weapons import and a two front war. I guess south Asia is looking for war.
 
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The article was written by a clown.

Our import rate has been dropping like crazy and is set to drop even more over the next 3 years.
where in the article did it talked about the rate of importing equipment? Even if u're referring to this single sentence in the article:

IN FEBRUARY India quietly passed a milestone. The release of its annual budget showed that defence spending, at $62bn, has swept past that of its former colonial master, Britain. Only America, China, Saudi Arabia and Russia lavish more on their soldiers. For nearly a decade India has also been the world’s top importer of arms.

India was and still is the world's top importer of defence equipment- and not only that, it is going on an ever-increasing trend, not a decreasing one:

https://www.firstpost.com/world/ind...ina-lead-in-defence-expenditures-4252683.html

Global arms and military services sales rose for the first time since 2010, with India, Saudi Arabia, UAE, China and Algeria emerging as the top importers during the five year period of 2012-2016, a Firstpost analysis of the latest Stockholm International Peace Research Institute (SIPRI) report on global arms sales showed.

Together, these countries accounted for 34 percent of all global imports with India leading the table accounting for 13 percent for all arms imports. Vietnam was a new entry in the top-10 arms importers accounting for 3 percent of all global sales.


Global arms sales highest in five years
Infogram
Based on sales by the world's 100 biggest arms producers, the report pointed at an increase of 1.9 percent (based on 2015 US dollar values) from 2015 with $374.8 billion spent on arms and military services. Based on current US dollar values, the arms sales rose by 1.3 percent.

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According to SIPRI's military expediture database, the volume of transfers of major weapons in 2012–16 was 8.4 percent higher than in 2007–11.

The United States managed its stand as the world's largest spender followed by China and Russia. The US also accounted for largest share of arms sales (33 percent) followed by Russia 23 percent. Interestingly, Saudi Arabia, the fourth largest spender, is the largest client of American arms, accounting for 13 percent of arms sales by US companies. The US also accounted for 14 percent of all Indian purchases, however, it was Russia which led the table accounting for 68 percent of India's arms imports during 2012-2016.


India was also among the top five spenders on arms and military services in 2016 spending $55,923 million in arms and military services.
According to the report, geopolitical tensions in the South China Sea, West Asia, and the Indian sub-continent has fuelled a rise in arms imports in West Asia and the Asia-Oceania, with the two regions contributing to 72 percent of all arms imports during 2012-2016 as compared to 2007-2011.

Though USA, Russia, China, France, and Germany accounted for 74 percent of the total volume of arms exports, a change was witnessed in arms exporters with South Korea maintaining its stand as an emerging arms supplier, whereas Germany and France seeing a decrease in arms sales.








Anyway, the topic was about Indian army getting poor value for the amount of money it spends on defence.

Furthermore, India spends lion's share of whatever budget it has- on personnel's pay and pension- not in its Defence MIC or any R&D- as seen in:

If pensions are included, some three-quarters of the overall defence budget will be consumed by salaries and benefits, leaving scant funding for procurement, let alone such luxuries as research and development. Small wonder that foreign investment in the defence industry, touted as a centrepiece of the government’s Make In India campaign to boost domestic manufacturing, amounted to less than $200,000 from 2014 to 2017, out of some $60bn of FDI in 2017 alone.

There u go, just rhetoric- again:

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