India Must Raise Defence Budget to 2.5-3% of GDP: Rajesh Kumar Singh
Defence Secretary Rajesh Kumar Singh has said that India’s current defence spending, which is about 2% of GDP, needs to be raised to 2.5-3%. He stressed that the increase is vital to meet modern security challenges and technological demands.
Plans for Annual Capital Outlay
Singh noted that the government plans to allocate USD $25–30 billion annually for defence capital expenditure over the next decade. Of this, at least 75% will be directed towards domestic procurement and production. Last year, 88% of the defence capital budget was spent within India.
Focus on Indigenisation & Emerging Tech
Key areas of investment will include drones, underwater drones, satellite imagery, AI, hypersonic weapons, and precision munitions. Singh said India’s focus will be on reducing reliance on foreign suppliers where indigenous technology is sufficiently advanced.
Streamlining Defence Procurement
To make procurement faster and more efficient, Singh proposed reforms such as open bidding, eliminating nomination-based preferences, and creating opportunities for start-ups. He also confirmed that a major RFP for Medium Altitude Long Endurance (MALE) drones worth ₹30,000 crore will be issued soon.
