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India is planning to raise its military budget by 50% to almost $40 billion, making military expenditure 3% of the annual gross domestic product (GDP), the defense minister said.

"Our current defense spending is lower than 2% [of GDP]...and it should be at least 3%," A. K. Antony said at a meeting with top military commanders on Tuesday, without specifying a timeframe. India raised its defense spending in February by 10% to $26.5 billion for the fiscal year 2008-2009, but it still fell below 2% of GDP for the first time in at least a decade.

India's neighbors and long-term rivals, Pakistan and China, allocate around 3.5% and 4.3% of GDP to defense, respectively. The minister said top priority must be given to the modernization of the Indian Armed Forces and half of the defense budget should be allocated for the purchase of new military equipment.

"The modernization of armed forces has become a global trend," he said. "We must also assume a new approach taking into account a variety of threats to our national security." The Associated Chambers of Commerce and Industry of India said in a report last year that over the past three years, India had spent as much as $10.5 billion on military imports, making it amongst the largest arms importers in the developing world.

India's military imports are expected to reach $30 billion by 2012 with its armed forces expected to ink defense deals for at least 126 multirole fighters, 155-mm howitzers, a variety of helicopters and long-range maritime reconnaissance aircraft.

 

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NEW DELHI: Notwithstanding Pakistan's unilateral freeze on its defence spending and a request to others to follow, India on Tuesday hinted at doubling its defence expenditure as its current spend was much below the world average despite a booming economy.

Defence minister A K Antony on Tuesday said the modernization of armed forces was one of the top most priorities of the government. "Our defence budget is just 1.99% of the GDP, which is one of the lowest in the world. The ideal situation would be 3% of GDP, which is the global average," he added.

Antony's comments came just a day after Pakistan premier Yousuf Raza Gilani made a statement that his government had decided to reduce the defence budget and "hoped to see a reciprocal gesture from its neighbour for the sake of peace and prosperity of the region". Pakistan's current spending on defence is nearly 3% of its GDP at around Rs 275 billion.

Antony's remarks are not only a rebuff to Pakistan but seen as an assertion of the fact that India's strategic and defence preparedness are no more Pakistan oriented. The focus has shifted to China.

"Armed forces all over the world are modernizing and becoming technology intensive. We must adopt a joint approach, keeping in view the varied security challenges being faced by our nation," he said stressing on "integration of tri-service approach in thought and in action".

The defence minister said the country's most important challenge in the foreseeable future still remains the growing instability in its neighbourhood. He said India has continuously expressed serious concerns on cross-border terrorism and has reiterated the importance of Pakistan fulfiling its commitment against terrorism. Antony said it is yet to be seen whether the recently formed government in Pakistan is able to address issues of national security, religious fundamentalism and cross-border terrorism effectively.

He warned that forces within J&K and those outside, who do not want successful conduct of elections and peace in the state, will try their best to disrupt the democratic process. "We will have to keep a constant vigil and intensify our efforts to ensure conduct of free and fair elections in an atmosphere of peace," he said.