Budget 2024 / India is behind China in defence expenditure, big announcements are possible in the budget amid rising tension with Pakistan

Budget 2024: Finance Minister Nirmala Sitharaman is going to present the Union Budget on July 23 and experts estimate that more allocation will be made for the defense sector in the upcoming budget. This is because in view of the way terrorist attacks have increased in recent times and the situation with Pakistan has become tense, it is possible to announce an increase in defense spending in the budget. It is worth mentioning that India is behind China in terms of defense spending. As India's stature and power is increasing, China has emerged as a neighbor with whom India has had some clashes. To increase security spending, India's strategy will focus on keeping China away.

Why is there a need to increase the defense budget

Experts say that China's actions in the coastal areas of the South China Sea indicate preparations on India's part in view of the global conflict scenario. He said that China's actions on the LAC and LoC pose challenges for India's defense sector to protect its territorial integrity. India's defence budget is expected to meet the rapidly changing geopolitical scenarios globally. Hence the need to increase the defence budget.

China vs India Defence

Despite China's economic slowdown, the country has doubled its defence expenditure since 2015. In the interim budget 2024-25, the Modi government had allocated around $75 billion. At the same time, China's defence budget for 2024 will increase by 7.2 percent to Chinese Yuan (CNY) 1.66554 trillion, which is equivalent to US$231.4 trillion. Defence experts say that given the current geopolitical scenario including the threat posed to India from China and Pakistan, India should spend at least 25 percent of the total central government expenditure in the upcoming budget.