India's Defence Strategy: Benchmarking for the Future
An EY report suggests India should benchmark military spending at 3% of GDP, establish a non-lapsable defence modernisation fund, and incentivise domestic manufacturing to strengthen its defence infrastructure. The report highlights the need for a forward-looking budgeting strategy to handle geopolitical and technological challenges.
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- India
India is urged to benchmark its military spending at 3% of GDP, create a non-lapsable defence modernisation fund, and incentivise domestic manufacturing, according to an EY report released Monday.
The June edition of EY Economy Watch stresses the importance of a forward-looking defence budgeting strategy. It argues this approach is essential for developing a resilient and responsive defence infrastructure to address evolving geopolitical and technological challenges.
While India's military expenditure as a share of GDP has fallen over the years, the EY report recommends increasing it to 3%. Establishing a dedicated modernisation fund could provide the fiscal predictability needed to invest in advanced technology and bolster domestic manufacturing, according to D K Srivastava, EY India Chief Policy Advisor.
(With inputs from agencies.)
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