More money for defence, now fix the process, Pg8

Key Highlights:

• India's new defence budget sees a double-digit increase, reaching 2% of GDP, signaling strategic resolve amidst global turbulence.
• Capital expenditure in the defence sector has risen by over 22%, surpassing revenue expenditure, with a focus on modernization.
• The Indian Air Force receives a 32% budget increase, while the Indian Army gets a 30% hike for heavy vehicles and weapons.
• Defence exports have increased significantly, reaching ₹23,000 crore last year, compared to ₹1,000 crore in 2014.

Detailed Insights:

• The increased defence budget aims to address the weakening rupee, which has made capital goods imports more expensive.
• A significant portion (75%) of the capital acquisition budget is earmarked for domestic industries, including private players, to boost indigenous defence production.
• Bureaucratic delays, exemplified by projects like Project 75 for submarines and the Rafale fighter aircraft deal, hinder timely modernization.
• The article suggests re-examining the proposal for a Non-Lapsable Defence Modernisation Fund to ensure financial constraints do not impede the defence industry.
• Despite increased funding for defence research and development (R&D), it remains fragmented and lacks private sector involvement, unlike countries like Japan.
• Viewing the defence budget as a tool for powering growth, rather than a non-development section, is crucial for achieving Viksit Bharat's economic goals.

Key Concepts Involved:

• Capital Expenditure: Funds used to acquire or upgrade fixed assets like equipment and infrastructure.
• Indigenisation: The process of developing and producing goods and services domestically, reducing reliance on imports.
• Non-Lapsable Fund: A fund where unspent money is carried over to the next fiscal year, instead of reverting to the government.