Modernisation

Capital expenditure covers procurement of weapons, aircraft, ships, and equipment. Revenue expenditure (salaries, pensions, operations) is roughly 2× capital. India's defence budget as a % of GDP has stayed near 2% — below the NATO 2% guideline on a PPP-adjusted basis, India's defence spend ranks 3rd globally. Modernisation pace has been criticised for delays in procurement and large import dependency (still ~60% by value).