Skip to content
Search

Latest Stories

Modest rise in Indian military spending likely in budget 2019-20

INDIA is likely to stick to a modest rise in defence spending in the 2019-20 budget due on Friday (5) because of tight government finances, officials said, further delaying a long-planned military modernisation programme.

India's air force desperately needs hundreds of combat planes and helicopters to replace its Soviet-era aircraft while the navy has long planned for a dozen submarines to counter the expanding presence of the Chinese navy in the Indian Ocean.


The army, a large part of which is deployed on the border with traditional foe Pakistan, has been seeking everything from assault rifles to surveillance drones and body armour.

But these plans have been on hold for years because governments have not been able to set aside large sums and most of the defence expenditure goes on salaries and pensions for a 1.4 million standing military, the world's second largest after China.

In an interim budget announced in February before national elections, the government allocated $62.27 billion for defence, a 6.6 per cent rise over the previous year, raising concern at the time it wouldn't be enough for modernisation.

But a finance ministry official said there was unlikely to be any change to that allocation when finance minister Nirmala Sitharaman presents the federal budget in parliament.

"Defence is our major spending and we give it as much as the budget allows. But this year, a significant rise to what has already been allotted looks difficult," the official involved in the budget preparations said.

China, by contrast, in March announced defence spending of around $180bn, a 7.5 per cent increase over 2018 and faster than the economic growth target. While China doesn’t give many break-ups, it is largely assumed that a substantial portion of it goes towards modernisation, helped also by a cutback in maintenance costs.

Since Chinese President Xi Jinping took office in late 2012, he has made strengthening and modernising the military a very key part of his policy platform.

Part of that has been a reduction in troops by about 300,000 and the money saved in this is invested in much more advanced equipment and research and development.

Indian military planners have also considered restructuring the forces for the last couple of years to reduce manpower costs, but have not moved fast enough.

There are 2.4 million defence pensioners at the moment, with approximately 55,000 being added every year.

"We need a lot of funds but it is not very likely to come," a defence ministry official said.

Laxman Behera, a research fellow at the government-funded Institute for Defence Studies and Analyses in New Delhi, said the military's spending on pay, allowances and pensions had risen from 45 per cent to 56 per cent in the last four years.

Share of capital procurement had come down to 18 per cent from 21 per cent during the same period. "Pensions take away a major chunk of India's defence expenditure every year," he said.

The Modi government has also tied military modernisation to its Make-in-India drive to build a domestic industry which has been slow in taking off.

Global defence companies such as Lockheed Martin and Boeing are bidding for a contract to supply the air force 114 combat planes which will be made in India in a deal estimated to be over $15bn.

There will be little movement on the jet contract and another on submarines if no new funds are announced, the defence ministry official said.

(Reuters)

More For You

Tesco Clubcard Changes: Update Your App Before the Deadline

The digital Clubcard offers convenience and flexibility

Getty

Tesco Clubcard changes: Customers urged to update app before Monday deadline

Tesco has issued an urgent call for action to millions of its Clubcard users, advising them to update their Tesco Shopping & Clubcard app before Monday, 31 March 2025. The supermarket giant is rolling out an important update to improve data protection and online security, and failure to update the app by the deadline will leave customers unable to access their digital Clubcard benefits.

Update to ensure enhanced security

The upcoming changes are being implemented to enhance the security of customer data and improve overall protection. Tesco has highlighted the importance of this upgrade, as it seeks to safeguard customer information and keep their online shopping experiences secure.

Keep ReadingShow less
OpenAI Restricts ChatGPT’s Image Feature After Viral Ghibli Trend

Altman addressed the impact of the popular Ghibli-style image trend on OpenAI’s resources

Getty

OpenAI limits ChatGPT’s image generation feature amid viral Ghibli image trend

OpenAI CEO Sam Altman has announced temporary limitations on the company’s image generation feature in response to overwhelming demand driven by a viral trend. On Thursday, Altman addressed the impact of the popular Ghibli-style image trend on OpenAI’s resources, particularly its reliance on GPUs (graphics processing units). Altman revealed that the surge in demand for ChatGPT’s image generation tool has led to significant strain on the company’s infrastructure, prompting the introduction of temporary speed limits for users.

In a post on X (formerly Twitter), Altman shared the company’s response to the unexpected demand, stating, “It’s super fun seeing people love images in ChatGPT, but our GPUs are melting. We are going to temporarily introduce some rate limits while we work on making it more efficient. Hopefully won’t be long! ChatGPT free tier will get 3 generations per day soon.”

Keep ReadingShow less
UK-business-district-Getty
The Canary Wharf business district including global financial institutions in London. (Photo: Getty Images)

Economic growth in 2024 slightly higher than estimated: ONS

THE UK economy grew slightly more than first estimated in 2024, according to official data released on Friday, providing a small boost for the government after it revised down its growth forecast for 2025.

The Office for National Statistics (ONS) said gross domestic product expanded by 1.1 per cent in 2024, up from an initial estimate of 0.9 per cent.

Keep ReadingShow less
Sri Lanka posts five per cent GDP growth as it ends years of economic decline

Sri Lanka's president Anura Kumara Dissanayake

Sri Lanka posts five per cent GDP growth as it ends years of economic decline

CASH-STRAPPED Sri Lanka’s economy grew by five per cent in 2024, marking the first full year of expansion since its unprecedented meltdown in 2022, official data showed last Tuesday (18).

The last quarter of 2024 saw the economy expand by 5.4 per cent, bringing the full calendar year’s GDP growth to five per cent, compared to a contraction of 2.3 per cent in 2023.

Keep ReadingShow less
Donald Trump

Speaking from the Oval Office, Trump said, 'What we’re going to be doing is a 25 per cent tariff on all cars that are not made in the US.'

Getty Images

Trump imposes 25 per cent tariffs on foreign-built cars

US president Donald Trump has announced a 25 per cent tariff on imported cars and auto parts, escalating trade tensions with key partners.

The new duties take effect on 3 April and apply to foreign-made cars and light trucks, with additional levies on key auto parts set to follow within the month.

Keep ReadingShow less