While Indian leaders and strategists claim a pre-eminent role in the Indian Ocean Region and portray the Indian Navy as the key guarantor of security in these waters, it remains unclear whether the hard power capability exists for discharging such a role.
With the navy’s annual budget steadily declining, national security planners are reluctant to green light crucial power projection platforms, notably India’s second indigenous aircraft carrier (IAC-2), which should have already been under construction to join the fleet by about 2030.
India’s ambitious maritime aspirations were outlined in Prime Minister Narendra Modi’s keynote address at the prestigious Shangri-La Dialogue on June 1. Declaring that India would help “build economic capabilities and improve maritime security for our friends and partners”, he claimed: “We are advancing a comprehensive agenda of regional co-operation through Indian Ocean Rim Association. And we also work with partners beyond the Indian Ocean Region to ensure that the global transit routes remain peaceful and free for all.”
The prime minister was clear about India’s maritime challenges: “We see growing mutual insecurity and rising military expenditure; internal dislocations turning into external tensions; and new fault lines in trade and competition in the global commons. Above all, we see assertion of power over recourse to international norms.”
Yet, the National Democratic Alliance (NDA) government, like the United Progressive Alliance (UPA) government before it, continues de-prioritising the navy in allocating financial resources. The navy’s budget, instead of growing to support the heavily tom-tommed “Act East” strategy, is currently at a decadal low.
Since 2010-11, when the navy got 30 per cent of the three services’ capital budget, its allocation has dropped to 25 per cent this year. As a percentage of the military budget, the navy’s share has fallen from 19 per cent in 2010-11 to just 15.5 per cent this year.
The absolute figures are even more telling. Were the naval allocations to have risen seven per cent annually since 2010-11, roughly in tandem with the Gross Domestic Product (GDP), the navy’s capital allocation of Rs 171.4 billion in 2010-11 would have grown to Rs 294.51 billion this year. In reality, the navy got just Rs 208.48 billion. Nor is there recognition of the ten per cent annual inflation in defence, or of India’s “Look East” and “Act East” policies that call for stepping up the navy’s budget.
The reduction in naval allocations comes despite the defence ministry’s official approval of the navy’s Maritime Capability Perspective Plan. First drawn up in 2005, and updated for the 15-year period 2012-2027, this committed to fielding three aircraft carriers, so that at least two are operational at all times, one each with the western and eastern naval fleets. “The ministry is reneging on a solemn commitment”, says Admiral Arun Prakash (Retired), who was naval chief in 2005.
While inadequate capital allocations affect all warship acquisitions, the drag is most apparent in the navy’s flagship project to design and develop IAC-2, which will reportedly be named INS Vishal. The first indigenous carrier, INS Vikrant, which is being constructed in Cochin Shipyard, is expected to be commissioned in 2021. IAC-2 should have begun construction, but has not even managed to get an “in principle” approval from the defence ministry, which seems paralysed by the fratricidal contest between the army, air force and navy for the same depleted budget.
With the navy’s annual budget steadily declining, national security planners are reluctant to green light crucial power projection platforms, notably India’s second indigenous aircraft carrier (IAC-2), which should have already been under construction to join the fleet by about 2030.
India’s ambitious maritime aspirations were outlined in Prime Minister Narendra Modi’s keynote address at the prestigious Shangri-La Dialogue on June 1. Declaring that India would help “build economic capabilities and improve maritime security for our friends and partners”, he claimed: “We are advancing a comprehensive agenda of regional co-operation through Indian Ocean Rim Association. And we also work with partners beyond the Indian Ocean Region to ensure that the global transit routes remain peaceful and free for all.”
The prime minister was clear about India’s maritime challenges: “We see growing mutual insecurity and rising military expenditure; internal dislocations turning into external tensions; and new fault lines in trade and competition in the global commons. Above all, we see assertion of power over recourse to international norms.”
Yet, the National Democratic Alliance (NDA) government, like the United Progressive Alliance (UPA) government before it, continues de-prioritising the navy in allocating financial resources. The navy’s budget, instead of growing to support the heavily tom-tommed “Act East” strategy, is currently at a decadal low.
Since 2010-11, when the navy got 30 per cent of the three services’ capital budget, its allocation has dropped to 25 per cent this year. As a percentage of the military budget, the navy’s share has fallen from 19 per cent in 2010-11 to just 15.5 per cent this year.
The absolute figures are even more telling. Were the naval allocations to have risen seven per cent annually since 2010-11, roughly in tandem with the Gross Domestic Product (GDP), the navy’s capital allocation of Rs 171.4 billion in 2010-11 would have grown to Rs 294.51 billion this year. In reality, the navy got just Rs 208.48 billion. Nor is there recognition of the ten per cent annual inflation in defence, or of India’s “Look East” and “Act East” policies that call for stepping up the navy’s budget.
The reduction in naval allocations comes despite the defence ministry’s official approval of the navy’s Maritime Capability Perspective Plan. First drawn up in 2005, and updated for the 15-year period 2012-2027, this committed to fielding three aircraft carriers, so that at least two are operational at all times, one each with the western and eastern naval fleets. “The ministry is reneging on a solemn commitment”, says Admiral Arun Prakash (Retired), who was naval chief in 2005.
While inadequate capital allocations affect all warship acquisitions, the drag is most apparent in the navy’s flagship project to design and develop IAC-2, which will reportedly be named INS Vishal. The first indigenous carrier, INS Vikrant, which is being constructed in Cochin Shipyard, is expected to be commissioned in 2021. IAC-2 should have begun construction, but has not even managed to get an “in principle” approval from the defence ministry, which seems paralysed by the fratricidal contest between the army, air force and navy for the same depleted budget.

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