ABSTRACT

This chapter examines the changing contours of Indian defence spending since the country’s independence in 1947. While examining India’s defence expenditure, the chapter also discusses the allocation pattern among the armed forces, investment on defence research and development (R&D) and the problem of underspending, especially of the Indian Army. The chapter, however, begins with a brief description of India’s defence expenditure in order to understand some of the nuances associated with India’s defence spending. The chapter concludes with an assessment of budgetary challenges in times ahead.