China's defense budget remains 3 times higher than India

China on Wednesday announced a 7.2 per cent hike in its annual defence budget to take it to over $245 billion.

Experts believe that China’s actual defense spending is significantly higher—estimated to be at least 40-50% more than the declared figures—due to its practice of allocating military funds under various budget categories. Even with the stated amount, China’s defense budget remains over three times larger than India's and is second only to the United States, which is set to spend over $900 billion on its military this year.
China continues to modernize its 2-million-strong People’s Liberation Army (PLA) to assert its global strategic influence, challenge U.S. dominance, and deter third-party intervention in Taiwan. Additionally, it aims to reinforce its position in territorial disputes across the South and East China Seas, as well as along the 3,488-km Line of Actual Control (LAC) with India.
A senior military official in India has urged the government to raise defense spending to at least 2.5% of the country’s GDP, up from the current 1.9%, to strengthen deterrence capabilities against both China and Pakistan. The official emphasized the need to address operational gaps in India’s military, calling for urgent investments in defense modernization.
A significant portion of India’s defense budget is allocated to salaries, pensions, and operational maintenance of its 1.4-million-strong armed forces, leaving only about 25% for modernization efforts. This limited funding has led to shortages in key military assets, including fighter jets, submarines, helicopters, air defense systems, anti-tank guided missiles, and night-fighting equipment.
The Indian Air Force (IAF) faces a particularly critical shortfall, operating only 30 fighter squadrons—each consisting of 16-18 aircraft—despite the sanctioned requirement of 42.5 squadrons. While India continues to develop its indigenous Tejas fighter jets, China has already deployed its advanced fifth-generation J-20 stealth fighters at air bases near the Indian border. Furthermore, China is progressing with sixth-generation fighter prototypes and is set to supply at least 40 J-35A fifth-generation jets to Pakistan.
On the nuclear front, China is expanding its arsenal at a faster rate than any other nation, with its operational warheads exceeding 600 and expected to surpass 1,000 by 2035. Meanwhile, Pakistan and India both maintain nuclear stockpiles of approximately 160-170 warheads each.
China also possesses the world’s largest navy, boasting over 370 warships and submarines. While it may not yet match the technological sophistication of the U.S. Navy, China continues to enhance its maritime presence. Additionally, its strategic collaboration with Pakistan extends to naval expansion, including joint exercises such as 'Sea Guardian' and assistance in strengthening Pakistan’s naval capabilities.