Budget 2026: How low is India's defense budget compared to other countries? Can there be a big provision in Budget 2026?
Serious discussions have begun regarding India's defense budget before this year's central budget. The growing military power of China and the changing geopolitical situation in East Asia have forced many countries, including India, to rethink their strategies. India's defense budget is not just a statistic but an important factor affecting the military balance and strategic power in the Asian region.
In 2020, India's military expenditure was $77.4 billion (approximately 6.42 lakh crore rupees), which increased to $83.6 billion (6.94 lakh crore rupees) by 2024. This indicates an increase of about 8 percent, which is less than the 19 percent increase during 2016-2020. However, the share of defense expenditure in comparison to GDP is continuously declining. From 2.8 percent of GDP in 2009-10, it fell to 1.9 percent in 2024-25, which is the lowest level in 16 years. Experts say that the share of the budget is decreasing due to the rapid growth of the economy.
China has taken the lead in defense budget in Asia. According to the Stockholm International Peace Research Institute (SIPRI), China's expenditure increased from 260 billion dollars to 318 billion dollars (26.39 lakh crore rupees) between 2020-2024, a 22 percent increase. China is spending four times more compared to India. In South Asia, Pakistan's expenditure decreased by 19 percent after 2020, while Bangladesh and Sri Lanka also reduced their budgets. In Sri Lanka, this expenditure fell by a quarter due to the economic crisis.
However, in East Asia, the arms race is intense. Japan increased its defense budget by more than 40% to $58 billion between 2020-2024, while Taiwan increased it by 37%. Both countries consider this necessary to face China's growing pressure. This is rapidly changing the military balance in the region, and India will also have to consider increasing its budget.
All eyes are on how much will be allocated for defense in the budget. Defense experts express that due to China's lead, increasing the budget is inevitable to face the challenges on India's border.