India’s Parliamentary Standing Committee on Defence has warned the federal government in New Delhi about what it regards as an inadequate defence outlay for fiscal year 2020/21 (FY 2020/21), arguing that the expected financial shortfall will adversely impact the military’s operational efficiency and delay its modernisation.
In a total of four reports tabled in parliament on 13 March, the committee warned the administration that the ongoing financial crunch could even lead to a deferment in payments for previously acquired materiel.
The 31-member committee revealed that the annual capital outlay for the military’s modernisation, which includes acquiring new platforms and materiel as well as upgrading existing equipment, has declined some 35% since FY 2015/16.
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