China Raises its Defence Budget by 7.2 per cent, What it means for India?

As China continues to enhance its high-tech military capabilities, a 7.2 per cent increase in its national defence budget has been announced on Wednesday. The Chinese defence budget will reach USD 249 billion this year following the announcement. The planned defence expenditure for the country is 1.784665 trillion yuan this year. It amounts to about USD 249 billion. This is according to a draft budget report submitted to China’s Parliament by Premier Li Qiang. During the previous year, China had increased its defence budget by 7.2 per cent to about $232 billion (1.67 trillion yuan). Interestingly the Chinese defence budget is almost over three times that of India. China is modernising all its armed forces. This is due to tensions in the Taiwan Strait and the South China Sea. It is also a response to maintaining military preparedness concerning regional players like Japan and the United States.

China has been building its aircraft carriers, advanced naval ships and modern stealth aircraft since past few years. The budget increase is being expected to further boost the massive military modernisation by China.

India has focused on improving its military infrastructure, especially along the LAC, to counter China. It has set its defence budget at Rs 6.81 trillion (approximately $81.72 billion) for the financial year beginning on April 1. The defence budget increase by China will impact its defence spending along the LAC. Both countries have remained in a standoff there since 2020. India has been engaged in accelerating its military infrastructure along the LAC to match the Chinese side. India is likely to focus on its preparedness along the LAC in accordance with China.

The announcement in the defence budget was made during the government’s work report. This report was presented at the annual session of the National People’s Congress (NPC) on Wednesday. China has also set an economic growth target of 5 per cent for 2025. The new defence budget is lower than the double-digit annual increases seen in previous decades. However, it remains the second-largest globally after the United States. Speaking at the NPC, Chinese Premier Li Qiang said, “We resolutely oppose separatist activities.

Their foreign supporters are also opposed,” he said. He addressed nearly 3,000 lawmakers gathered at the Great Hall of the People in Beijing. China has set the GDP growth target of around 5% for 2025. Shen Danyang, head of the government work report drafting team, mentioned this at a press conference in Beijing on Wednesday. “This decision has come after sufficient study and reasoning. The process included field study in localities and soliciting views from experts, scholars, and enterprises. Whether this growth target can be achieved depends on the development trajectory, the capability conditions, and the supporting policies. Consider these factors comprehensively, we are fully confident for achieving such target this year.”