Following the news of Indian Navy’s expenditure for FY2022-2023 announced in the union budget recently, Sourabh Banik, Aerospace & Defense Analyst at GlobalData, a data and analytics company, said the expenditure will boost the country’s security.
“Indian Navy’s capital expenditure (capex) witnessed a significant jump of 38.4 percent in the revised estimates of FY2021-2022 as compared to the originally budgeted capex for the same year. The initial budgeted capex of US$4.44 billion in FY2021-2022 was revised to US$6.15 billion. This increase is primarily attributed to the delivery payments made by Indian Navy last year for various platforms including P-8I aircraft, MH-60R helicopters, Advanced Light Helicopters (ALH) Mk III, Kalvari-class (Scorpène-class) submarines and Visakhapatnam-class destroyer.
“The revised estimate of Navy’s capex has been further increased by 3.4 percent to US$6.36 billion in FY2022-2023 budget. This indicates India’s focus on boosting its maritime capabilities and maintaining its territorial influence, which was allegedly challenged by its regional rival China on multiple occasions, especially in the Indian Ocean region.
“Furthermore, the Quad (comprising of US, Japan, Australia and India) is the extended beneficiary of India’s shift in focus on maritime security, as it will provide the alliance additional firepower to counter China’s naval power in the region. According to GlobalData’s report, ‘Global Naval Vessels and Surface Combatants Market to 2031 and Global Submarine Market To 2031’, India is expected to spend US$58.9bn on procuring naval vessels and submarines between 2021 and 2031, highlighting that the Indian Navy’s upward spending trend is unlikely to subside in the near-term.”