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China has announced a 7.2% increase in its annual defense budget, bringing the total to over $245 billion. This hike comes as part of China’s ongoing efforts to enhance its military capabilities across land, air, sea, nuclear, space, and cyber domains.
China’s Military Spending: Larger Than Reported
Experts estimate that China’s real defense expenditure is much more than the announced budget, at least 40-50% more as funds are kept under other heads.
Even with the announced budget, China’s defense expenditure is over three times that of India’s ($79 billion). This makes China the world’s second-largest defense spender after the United States, whose defense budget is over $900 billion.
Strategic Modernization Of PLA
The higher expenditure is in favor of China’s ambitious modernization plan for its 2-million-strong People’s Liberation Army (PLA).
The modernization is intended to counter the US worldwide and deter third-party intervention in Taiwan. And to establish China’s supremacy in territorial disputes in the South and East China Seas and along its 3,488-km Line of Actual Control (LAC) with India.
Even after a disengagement in eastern Ladakh, the deployment of PLA troops along the LAC continues unabated.
India’s Defense Expenditure And Modernization Challenges
India’s defense expenditure stands at 1.9% of its GDP, much less than the 2.5% needed for effective deterrence against China and Pakistan. India’s military is grappling with huge operating gaps, such as the shortage of fighters, submarines, and advanced air defense.
The Indian Air Force (IAF) is hardly managing with only 30 fighter squadrons, significantly below the needed 42.5.
China is also quickly increasing its nuclear stockpile, with more than 600 active warheads. Moreover, China has the world’s largest navy, with more than 370 warships and submarines.
It is assisting Pakistan in the development of its navy, further enhancing its naval power.
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