China has raised its defense budget by 7.2 percent to reach $232 billion. This increase reflects China's ongoing efforts to modernize its military significantly, amidst tensions surrounding Taiwan, the South China Sea, border disputes with India, and growing competition with the US. China, the world's second-largest spender on defense after the US, has earmarked 1.67 trillion yuan (approximately $232 billion) for defense expenditure. In comparison, the US defense budget for the previous year totaled $886 billion.

The heightened tension with Taiwan and the US has prompted China to bolster its defense budget. Moreover, China's relationship with India is marked by significant friction, leading India to consistently augment its military budget annually. During the 2024 Interim budget speech, the Modi government announced an allocation of Rs. 6.21 lakh crore (approx $75 billion) for defense.

Comparing Defense Budgets: China vs. India
China's defense budget proposal for 2024 stands at 1.66554 trillion yuan ($231.36 billion), reflecting a 7.2% increase from the previous year. However, this official figure accounts for only a portion of the spending by the People’s Liberation Army (PLA), as it doesn't encompass expenditure on research and development or foreign weapons acquisitions.

Significantly, China's defense budget has more than doubled since 2015, despite a notable slowdown in its economic growth rate.

A Chinese military expert cited by Global Times noted that many countries have ramped up their military spending in recent years, particularly in response to the actions of the US and Japan.

In December 2023, US President Joe Biden authorized a record $886 billion annual military expenditure for fiscal 2024, nearly four times that of China's. In contrast, Japan approved a 16% increase in military spending and relaxed its postwar prohibition on exporting lethal weapons.

Meanwhile, India's defense budget for the Financial Year 2024-25 has reached Rs. 6,21,540.85 crore. This allocation is roughly one lakh crore (18.35%) higher than that for FY 2022-23 and 4.72% higher than that for FY 23-24.

Given the persistent threat perception along the Indo-China border, the Modi government has allotted Rs. 6,500 crore to the Border Roads Organisation, marking a 30% increase from FY 23-24. Additionally, Rs. 7,651.80 crore has been allocated for the Indian Coast Guard, representing a 6.31% rise from the previous fiscal year.

Describing the surge in capital expenditure outlay, the Defense Minister hailed it as a significant push, which will greatly contribute to India's goal of becoming a five trillion dollar economy by 2027.

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