Can India’s Defence Budget 2025 bridge global ambitions and domestic realities?
India's defence spending for the financial year 2025-26 is expected to stabilise around 1.9 to 2 per cent of GDP, consistent with recent years. While this offers financial stability, it may not be enough to counter escalating external threats. At the 21st Subroto Mukerjee Seminar, Defence Secretary Rajesh Kumar Singh highlighted the importance of prioritising resource allocation rather than increasing funds, noting that the current budget already stretches the absorptive capacity of domestic industries.
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Geopolitical strategist and FACE founder Velina Tchakarova remarked, “India’s defence budget at 2.4% of GDP (approximately $72.6 billion) positions it as the fourth-largest military spender globally, but its absolute spending significantly trails behind the U.S. ($916 billion), China ($296 billion), and the newly planned Russian defence budget for 2025 ($126 billion). This gap partially restricts India's ability to project power both regionally and globally, as sustained investments in advanced technologies, naval capabilities, and air power are critical for power projection. For instance, China’s rapid military expansion, including its robust naval fleet and artificial intelligence-based warfare systems, allows it to exert dominance in the Indo-Pacific—a region where India also seeks influence.”
Tchakarova added, “India’s plans, such as acquiring 114 multirole fighter jets and strengthening its naval capabilities with indigenous aircraft carriers like INS Vikrant, highlight its intent to enhance strategic reach,
