The combined shopping list of the armed forces is long and varied. There will therefore be great opportunities for the vast gathering of exhibitors to do meaningful businesses in the forthcoming Defexpo

The traditional announcement of the national budget during the ‘Budget Session’ in February each year slipped by nearly a month and was finally unveiled on March 16. The defence budget was once again a two-liner with Finance Minister Pranab Mukherjee announcing an allotment of Rs. 1,93,407 crore ($39 billion) for the financial year 2012-13 and that, if required, more funds would be provided to meet defence needs. A nearly 17 per cent increase in this year’s defence budget may appear to be a bold move on Mukherjee’s part, saddled as he is with the problems of a sluggish economic growth, rising global prices of crude oil and a burgeoning fiscal deficit, but the nagging question is, has he really been able to deliver especially on the modernisation front of the armed forces.

On the face of it, this year’s defence budget may show a 17 per cent increase over the 2011-12 defence budget, but when computing against the revised allocations for the previous year, it slides down to a 13.1 per cent increase. Secondly, while Rs. 1,13,828 crore earmarked under the revenue head expenditure might be able to meet the requirements of the services, it is the allotment under the capital head which is a cause of concern. Once again, the Rs. 79,579 crore ($16 billion) funds allotted for capital expenditure appear to be a substantial improvement over the previous year but when viewed against the depleting value of the rupee against the dollar (down by more than 20 per cent in last one year) and the ever rising inflationary pressures—both global and domestic—there is little reason left to cheer for the enhanced allocations.

Notwithstanding the above, it is sincerely hoped that whatever funds earmarked for the capital acquisitions—Army: Rs. 18,828 crore ($3.8 billion); Navy: Rs. 23,865 crore ($4.8 billion); and the Air Force: Rs. 29,853 crore ($6 billion)—would at least be allowed to be spent fully this year. In the past, MoD has been forced to surrender the money from capital account on one pretext or the other by the Finance Ministry. In the same vein, it is also to be hoped that for timely fructification of the armed forces’ capability building programmes, the capital fund allotments would be increased to the desired levels. It is worth noting that the IAF alone needs between $100-150 billion in the next ten years or so, if it has to build up its combat power which includes a force level of 42 jet fighter squadrons by 2022.

As far as the Indian Army is concerned, it needs to desperately accelerate the processes to bring its modernisation plans on track including that of the Army Aviation Corps (AAC) which continues to lament that its modernisation process is woefully slow. The AAC is firmly of the view that Army Aviation is the arm of the future, a force-multiplier which can tilt the balance in any future conflict. Its greatly expanded requirements, especially in terms of its rotary wing capabilities need immediate attention by the government.

The combined shopping list of the armed forces is long and varied. There will therefore be great opportunities for the vast gathering of exhibitors from both domestic, but mostly from around the globe, to do meaningful businesses in the forthcoming Defexpo to be held in Delhi (March 29-April 1).

At SP Guide Publications, while wishing the organisers and the exhibitors the ‘very best’, we are all set to welcome our readers and guests to India’s ‘Defexpo 2012’ in the prestigious capacity as the show’s official media partner.

See you all there!