The Indian Navy’s modernisation plans are being restricted due to a massic cash crunch. The government has reduced the Navy’s share from the defence budget by 5%.
The Navy Chief Admiral shared his concerns about the reduced budget allocation to the navy while talking to reporters on Tuesday. According to India Today, Admiral Singh said, "The Navy's share of the Defence Budget has declined from 18% in 2012 to approximately 13% in 2019-20."
Among the Indian Airforce (IAF) and the Indian Army, the Navy has been allocated the lowest capital. The Navy secured Rs 23,156.43 crores while the IAF was designated with Rs 39,302.64 crores and the Army with Rs 29,461.25 crores.
Admiral Singh further said, "While we have projected our requirement to the Government, we remain committed to progress force modernisation, using the available resources optimally. In the face of shortages, the emphasis is on prioritisation, rationalisation and economy of expenditure.”
According to sources, the Navy is trying to bring its budget allocation percentage to at least 16 if not 18. The sources also said that the Navy will need an additional funds allocation of Rs 6000 crore to make up for its loss.
The reduced funds have forced the Navy to reduce its order of 200 ships to 175, while the construction of another aircraft seems impossible. The Indian Navy aims to have at least three operational aircraft carriers latest by 2020. Currently, the Navy only has one, the INS Vikramaditya.