Context:
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India’s weak military modernisation in contrast to China’s is a wake-up call for the Indian security establishment.
Problems in India’s Defence Sector:
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High import dependency:
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India is the second largest arms importer, despite being the third-largest military spender.
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China on the other hand is fifth-largest arms exporter behind the US, Russia, France and Germany.
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Poor military modernisation:
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Because day to day military expenditure (salaries and pension) outstrip the capital outlay for military modernisation.
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Pension expenditure was almost $18 billion out of the total of $63 billion in 2020-21 defence budget.
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Lack of clarity on indigenous defence production:
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Negligible high technology transfers.
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As per CAG report, offset obligations of foreign vendors are not strictly enforced.
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Conclusion: India’s defence sector must take up the rapid military modernisation for reducing the defence disparity with China.