Datanomics: Indian Army's capital expenditure share stuck at 18.54%

Even as it faces active terror threats, the Indian Army's share of defence capital spending has fallen sharply, lagging behind the Air Force and Navy

As the Indian Army celebrated its 78th foundation day on January 15, its Chief General Upendra Dwivedi, addressing a press conference on January 14, said at least eight terror camps remained active across the International Border and Line of Control. Even though India faces these persistent 

security threats, the army has the lowest share of defence capital spending among the three services. The share fell over 10 percentage points from 28.74 per cent in FY16 to just 18.54 per cent in FY24.

 

Lagging in capex

 

The army has been behind the other two forces in capex since FY21. Last year, the army got approvals for a number of acquisitions. The moves may meet the shortfall of capex in the Army, but the force may still remain behind the other two. 

 

 

Army accounts for largest pie in defence salary

 

The army continues to claim the lion’s share of defence salary spending, accounting for over three-fourths of the total. In FY26 (BE), it had 76.69 per cent of the salary pie, down slightly from 79.02 per cent in FY14.

 

 

Pension liabilities

 

The army continues to shoulder the bulk of defence pension expenditure, though its burden has somewhat eased after FY17.