The Stockholm International Peace Research Institute (SIPRI) recently unveiled its annual report, titled “Trends in World Military Expenditure, 2019”. The report disclosed that the global military expenditure surged to $1917 billion in the previous year, with India and China featured among the top three spenders. An important aspect of the report is that it shows global military spending stood at 2.2% of the worldwide Gross Domestic Product (GDP), reflecting an increase of 3.6% from the preceding year. This augment of 3.6% marks the largest annual growth in spending since 2010.
Global Big Spenders
According to the report, the top five largest spenders are accountable for 62% of the global expenditure. The pecking order of these countries is as follows: USA, China, India, Russia, and Saudi Arabia. Notably, India was at the 4th position in 2018, with Saudi Arabia at the 3rd.
Military Expenditure in Asia and Oceania
In Asia and Oceania, Japan ($47.6 billion) and South Korea ($43.9 billion) were the largest military spenders, second only to India and China. Interestingly, Pakistan slipped to the 24th position in 2019 from the 19th in 2018. Pakistan’s military expenditure zoomed by 70% over the decade 2010-19, hitting $10.3 billion. Simultaneously, the military burden surged to 4% of GDP in 2019, a rise from 3.4% in 2010. The military burden essentially assesses the chunk of national resources dedicated to military activities and its load on the economy.
A Closer Look at India’s Defence Expenditure
The report underlines that India’s defence expenditure is experiencing growth in absolute terms. However, the defence expenditure as a percentage of its GDP has been on a downward trajectory due to the soaring trend in the growth of GDP. Specifically, in 2019, the expenditure was 2.4% of India’s GDP, which is lower than the 2.7% recorded in 2010.
India’s Defence Budget Allocation
The Union Budget 2019-20 planned for a total outlay of ₹27,84,200 crore, of which ₹3,18,931.22 crore was assigned for Defence (excluding Defence Pension). The entire Defence allocation, inclusive of Defence Pension, represented 15.48% of the total Central Government expenditure for the year 2019-20. This allocation was 6.8% higher than that of 2018 and has surged by 37% over the decade from 2010–19. Moreover, if compared with 1990, it has leapt up by 259%.
As per the anticipations of the Union Budget 2020-21, there is a total outlay of ₹30,42,230 crore. Out of this, ₹3,37,553 crore has been given for Defence (excluding Defence Pension). The total defence budget accounts for 15.49% of the total central government expenditure for the year 2020-21, representing a growth of 9.37% over Budget Estimates 2019-20. However, it was about 1.5% of the country’s GDP, marking the lowest in recent times.
Major Drivers for India’s Increased Military Spending
The report pointed out that India’s simmering tensions and rivalry with both Pakistan and China serve as significant drivers for its increased military spending.
About Stockholm International Peace Research Institute
The Stockholm International Peace Research Institute (SIPRI) is an independent international organisation dedicated to research related to conflict, armaments, arms control, and disarmament. Established in 1966 in Stockholm, Sweden, it offers data, analysis, and recommendations to policymakers, researchers, media, and the interested public, all based on open sources.
Report Source
The information was sourced from The Hindu.
