Back to news

February 6, 2019 | International, Aerospace, Naval, Land, C4ISR, Security, Other Defence

India’s new defense budget falls way short for modernization plans

By:

NEW DELHI – India's defense budget for 2019 included a marginal 6.87 percent bump to $49.68 billion, which is unlikely to meet modernization demands or ‘Make in India' manufacturing increases.

Out of the total allocation, $16.91 billion has been set aside to buy new weapons and other military hardware, compared to $14.68 billion in the previous financial year. But not accounted for are the liabilities, say some defense analysts, which could chip away at available funds.

“As of now, one doesn't know about the extent of committed liabilities to be able to say how much money will be available for new purchases,” said Amit Cowshish, former financial advisor for the Ministry of Defence acquisition. "But it can be said with reasonable certainty that the allocation must be much less than the requirement projected by the ministry. That being the case, the ministry will have to make do with whatever money they have got, just the way they have been managing in the past.”

India's defence budget is more than five times that of Pakistan, pegged at $9.6 billion — barely enough to maintain its basic operational capability.

Presenting the interim budget for 2019-20 in parliament, Union Minister for Finance and Corporate Affairs Piyush Goyal said additional funds, if necessary, would be provided to secure India's borders and maintain its defense preparedness.

Under capital outlay, the Army was granted $4.60 billion and the Navy granted $3.61 billion — both nearly flat compared to the year before. The Indian Air Force was allocated $6.14 billion, combared to $5.58 billion in the previous year.

One MoD official said the majority of funds will go towards past committed liabilities for Rafale fighters, S-400 missile systems, warships and helicopters. Still, the fact that the budget saw an increase is noteworthy to some.

“The allocation for defense, which for the first time has crossed the $49 billion threshold is encouraging," said Baba Kalyani, chairman of leading private sector defense enterprise Bharat Forge Ltd. In terms of manufacturing, "we hope that ‘Make in India' will result in a greater role for the private industry in this critical sector of the country's economy.”

Cowshish is less encouraged, seeing very few noteworthy programs on the horizon.

“It doesn't seem likely that many big contracts for fighters, helicopters, submarines, etc. will get concluded in the coming year," he said. "This is not because of paucity of funds but on account of the fact that none of these procurement proposals are likely to reach anywhere near the contract conclusion stage any time soon. “

https://www.defensenews.com/global/asia-pacific/2019/02/05/indias-new-defense-budget-falls-way-short-for-modernization-plans/

On the same subject

  • Boeing gets $2.9B for more KC-46 tankers

    September 11, 2018 | International, Aerospace

    Boeing gets $2.9B for more KC-46 tankers

    By: Valerie Insinna WASHINGTON — Boeing on Monday bagged a $2.9 billion contact for the fourth lot of KC-46 tankers, raising the total to 52 aircraft on order. The award, announced Sept. 10, covers the production of 18 KC-46s and other associated gear like spare engines and parts, support equipment and wing air refueling pod kits. “We're excited to partner with the Air Force on an aircraft that will provide its fleet unmatched capabilities and versatility,” said Mike Gibbons, Boeing KC-46A tanker vice president and program manager. “This is another big milestone for the team and we look forward to delivering this next-generation, multi-role tanker for years to come.” Monday's announcement follows a contract in December for the first foreign KC-46 order: a single tanker for Japan. The first two U.S. Air Force buys were finalized in August 2016 for a total of 19 aircraft, and a third order for another 15 KC-46s was added in January 2017. The service plans on buying 179 KC-46s over the course of the program. Technical problems have kept Boeing from delivering the first KC-46, and the company has already missed an initial August 2017 deadline to deliver 18 fully-certified tankers to the service. However, it appears the company is getting ever closer to that milestone. Earlier this year, Boeing and the Air Force came to an agreement on the schedule for the first KC-46 delivery, currently slated for October. Last week, Boeing disclosed that the KC-46 had received a supplemental type certificate from the Federal Aviation Administration — a series of tests that validate the aircraft's refueling and avionics systems meet FAA requirements and a prerequisite for aircraft delivery. Gibbons called the event “one of the last major hurdles in advance of first delivery to the U.S. Air Force” in a Sept. 4 statement. However, the KC-46 still needs to achieve a military type certificate from the Air Force, which validates its military-specific systems. Boeing concluded its testing in July and the certificate is expected to be granted “in the coming months,' the company said in a statement. https://www.defensenews.com/air/2018/09/11/boeing-gets-29b-for-more-kc-46-tankers

  • Photo feature: On board 'The Mighty Ike' with Carrier Strike Group 2 - Skies Mag

    August 16, 2023 | International, Naval

    Photo feature: On board 'The Mighty Ike' with Carrier Strike Group 2 - Skies Mag

    An exclusive look at operations on board the USS Eisenhower aircraft carrier, as Carrier Strike Group 2 performs a Composite Training Unit Exercise.

  • Airbus seeks to break Emirates jet order impasse | Reuters

    November 15, 2023 | International, Aerospace

    Airbus seeks to break Emirates jet order impasse | Reuters

    Airbus sought a compromise to try to unblock dozens of A350 orders from Dubai's Emirates late on Wednesday, buoyed by a deal for 11 of the most popular version of the jet with Ethiopian Airlines, industry sources said.

All news