India’s defence expenditure has remained less than 1% of its GDP in the last five years, data provided by the government to a parliamentary panel shows. According to a report of the standing committee on defence, the spending came down to 0.083% in 2020-21 from 0.088% in 2016-17.
The report on Demands for Grants for Defence Research and Development Organisation (DRDO) was presented in Parliament on Wednesday.
“In comparison to defence funding in countries such as the US, Russia, and China, our defence (R&D) spending is very less,” the panel said in the report.
“As per published data, India is funding 6% on defence R&D of the Defence Budget whilst, USA and China are spending approximately 12% and 20%, respectively, on Defence (R&D) as compared to their defence budget,” it said.
It further said a vibrant economy is possible only when both saving and spending go hand in hand.
“Spending the taxpayers’ money wisely is as important as saving if not more for the stimulation of growth in defence (R&D) capability,” it said.
The panel also said it is of the view, given the current international scenario, where threat perception is increasing due to the ongoing conflicts world over, it is essential to keep national security interest paramount.
It recommended that adequate funding should be provided to the defence research so that strategic projects are taken up with full vigour.
The panel also noted that there was a shortfall of Rs 1,659.80 crore in the DRDO budget for 2022-23, which would compromise operational needs and research and development.
The committee said DRDO should seek additional funds at the revised estimates and the supplementary stage to ensure its R&D plans progress as per the set timeline.
The panel also noted that the DRDO budget has remained at 5%-6% of the overall defence budget.
According to the data available in the report, DRDO had projected Rs 2,3460.44 crore in 2021-22, but the final budgetary allocation made was Rs 18,227.44 crore, which was short of Rs 5,122.56 crore.
Even for 2022-23, there was a shortfall of Rs 1,659.80 crore in the DRDO budget, it stated.
Read all the Latest News , Breaking News and Ukraine-Russia War Live Updates here.