Problems in Defence Sector – UPSC GS3

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