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By:

Amey Chitale

28 October 2024 at 5:29:02 am

From Bayonets to Bytes

India’s latest defence budget marks a decisive tilt toward technology, but the weight of men and pensions still anchors reform. When India’s armed forces executed the Western Corridor offensive under Operation Sindoor in May 2025, the message was not merely tactical. It was fiscal as well. Precision strikes, networked surveillance and indigenous platforms revealed both the promise of home-grown capability and the urgency of accelerating technological change. The Union Budget for 2026–27...

From Bayonets to Bytes

India’s latest defence budget marks a decisive tilt toward technology, but the weight of men and pensions still anchors reform. When India’s armed forces executed the Western Corridor offensive under Operation Sindoor in May 2025, the message was not merely tactical. It was fiscal as well. Precision strikes, networked surveillance and indigenous platforms revealed both the promise of home-grown capability and the urgency of accelerating technological change. The Union Budget for 2026–27 appears to have absorbed that lesson. With an outlay of Rs 7.85 trillion - the highest ever for the defence ministry - the government has signalled a shift from a manpower-heavy military inherited from the 20th century to a force designed for the multi-domain battles of the 21st. In 2013–14 India spent Rs 2.53 trillion on defence. The latest allocation is nearly triple that sum. While some of this rise reflects inflation and the inexorable growth of salaries and pensions, the composition of spending suggests something more deliberate. The most striking feature is capital expenditure. Nearly 28 percent of the total budget (Rs. 2.31trillion) has been earmarked for modernisation, a rise of around 22 percent over the previous year. By contrast, revenue expenditure covering operations, fuel, training and maintenance shows modest growth. Revenue Bias For decades, India’s defence budget was hobbled by what analysts called a “revenue bias.” Salaries and pensions crowded out modernisation. The Standing Committee on Defence (SCoD) repeatedly urged that at least 40 percent of allocations be devoted to capital expenditure and pressed for defence spending to reach 3 percent of GDP. The current budget restores spending to roughly 2 percent of GDP, short of the 3 percent benchmark. The tension between development and deterrence remains unresolved. The structural strain is most visible in the Indian Army. Manpower-heavy and deployed along contested borders, it consumes a disproportionate share of personnel costs. Pensions alone are budgeted at Rs 1.71trn, supporting more than 3.4m veterans. Since 2013 pension outlays have grown at an annualised 11 percent, outpacing overall defence spending. The One Rank One Pension scheme, though politically popular and morally defensible, has thickened the pension tail. Pay and allowances constitute nearly 53 percent of the Army’s revenue budget, compared with 26 percent for the Navy and 38 percent for the Air Force. The Army remains people-intensive while the sea and air services are technology-driven. Further pressure looms. The 8th Pay Commission’s recommendations, expected to take effect retrospectively from January 1, 2026, are likely to raise salaries and inflate future pension liabilities. Analysts expect revenue pressures to increase by 10–15 percent over the award period. Strategic Logic Yet the strategic logic of modernisation is compelling. India is the world’s fifth-largest military spender, with an outlay of roughly 86 billion dollars. But that pales beside China’s estimated 314 billion dollars. Although India maintains a comfortable conventional edge over Pakistan, it must prepare for the possibility of a two-front contingency, stretching from Himalayan borders to the Indian Ocean. In such a scenario, technology multiplies force more effectively than headcount. The 2026–27 capital budget reflects that calculus. Within it, spending on ‘Other Equipment’ has risen by over 30 percent, pointing to investments in network-centric warfare, sensors and unmanned systems. Aircraft and aero-engines have received a 31 percent boost, intended to shore up the Air Force’s thinning squadron strength. With only 31 operational squadrons against an authorised 42, the service is fast-tracking induction of LCA Tejas Mk1A fighters, pursuing a multirole fighter aircraft deal for 114 jets, and expanding airborne early-warning and refuelling fleets. The Navy, meanwhile, is inching towards its ambition of becoming a ‘builder’s navy.’ With 51 ships under construction, the commissioning of INS Aridaman and progress on Project 75(I) submarines and Project 17A frigates, it aims to field a fleet of over 170 ships by 2027. The maritime domain, increasingly contested from the South China Sea to the Arabian Sea, demands sustained investment. The Army’s own modernisation priorities are shaped by experience. Lessons from Operation Sindoor and persistent border tensions have spurred focus on artillery upgrades, night-fighting capabilities, loitering munitions and high-altitude mobility platforms. Here too, technology is intended to compensate for terrain and numbers. Research and development sits at the heart of this transition. The budget allocates Rs 29,100 crore to the Defence Research and Development Organisation (DRDO), up 8.5 percent from last year, with over Rs 17,000 crore directed to capital R&D in high-risk areas such as hypersonic systems and AI-enabled intelligence, surveillance and reconnaissance. Yet the scale remains modest by global standards. China is estimated to spend around 44 billion dollars annually on military R&D (roughly 15 percent of its defence outlay) whereas India’s R&D accounts for barely 4 percent. Roadblocks to Efficacy To bridge that gap, the government has opened 25 percent of the R&D budget to private industry, start-ups and academia through initiatives such as iDEX and ADITI. Indigenisation has progressed, albeit unevenly. Arms imports declined by 9.3 percent between 2015–19 and 2020–24, though India remains the world’s second-largest importer, accounting for 8.3 percent of global transfers. Russia’s share of Indian imports has fallen sharply, from 72 percent in 2010–14 to 36 percent in 2020–24, as France, Israel and the United States gain ground. Delays, quality concerns and bureaucratic inertia continue to hamper efficiency. The broader security environment offers little comfort. From the Ukraine war’s technological lessons to the proliferation of drones and cyber tools, modern conflict is increasingly defined by precision, autonomy and data dominance. For India, straddling volatile land borders and contested seas, the imperative is stark. Fiscal caution cannot come at the cost of obsolescence. The 2026–27 budget does not resolve every contradiction. Personnel costs remain heavy; the 3 percent-of-GDP aspiration remains unmet; procurement inefficiencies persist. But the direction of travel is unmistakable. After decades in which bayonets and battalions dominated the ledger, bytes and bandwidth are claiming a larger share. Whether India can sustain this momentum will determine whether Operation Sindoor was a harbinger of a new era or a fleeting flourish. (The author is a Chartered Accountant with a leading company in Mumbai. Views personal.)

India’s Longest Layover: Why Education Reform Remains Grounded

A country that enforces rest for pilots still relies on endurance from teachers to keep its education system airborne.

AI generated image
AI generated image

I was a student at the University of Mumbai in the late 80s, right in the middle of that unforgettable 54-day teachers’ strike of 1987. Technically, the situation should have been disastrous. The government was dragging its feet on implementing revised NEP-linked pay scales, negotiations were going nowhere, and the newspapers were full of ominous headlines. But my most explicit memory from those months has nothing to do with disruption. It has everything to do with what happened after the dharnas ended for the day.


After hours, our teachers quietly turned their homes into classrooms. Some lived in tiny one-bedroom apartments where you had to move a pressure cooker, two stools, one flower pot, and a mildly confused family cat before you could find a place to sit. Others had roomy drawing rooms with sofas that Chaucer himself would have approved. Some served full meals, some offered only tea, biscuits, and sincere apologies. But the teaching never stopped. Shakespeare was taught sitting on a diwan. Chaucer was decoded at a dining table. Milton was discussed on a balcony facing a busy Mumbai street.


Their protest was against the state, not against the students. They were fighting for their rights, but we never once paid the price. It was an extraordinary demonstration of quiet professionalism - something that has stayed with me for nearly four decades.


The 1987 strike was part of a longer pattern of periodic eruptions of protest in a system chronically slow to honour its own commitments. From the Kothari Commission’s unfulfilled promise of teachers as ‘nation-builders’ in the 1960s to repeated delays in pay revisions across states, India has long depended on educator restraint to paper over policy drift.


The memory of that strike resurfaced sharply over the past few days as India watched two very different headlines dominate the news cycle: the Indigo airline meltdown and Telangana’s newly enacted Right to Disconnect.


Unequal Compliance

Indigo’s crisis, as the DGCA dryly pointed out, was essentially a compliance failure. The airline simply ran out of time to meet mandated rest norms for its crew. And when pilots do not get enough rest, the nation does not encourage sacrifice. It enforces compliance. Immediately.


But this country behaves very differently when the people in question are teachers. Consistent training is non-negotiable for pilots but entirely optional for teachers. Mandatory rest is a safety requirement for pilots but a ‘luxury’ for educators. Compliance failures in aviation cause national uproar; compliance failures in education merely cause a circular requesting “adjustments.”


The contrast is absurd if you pause to think about it. One headline triggers government intervention. The other triggers collective silence. This is India’s policy algorithm: the more revenue-generating the sector, the higher the urgency; the more nation-building the sector, the lower the attention.


And then came Indigo’s other parallel - the one we all experienced. When Indigo couldn’t handle its workload, it simply passed the chaos to different airlines and the passengers. Other carriers made money, passengers were involuntarily enrolled in a masterclass in “waiting and patience management,” and social media became a therapeutic outlet.


Here is a refined extension with concrete, recognisable examples, kept subtle and observational in The Economist’s prose—no melodrama, just accumulation:


Education works precisely the same way. When a teacher resigns, falls ill or goes on leave, the workload is instantly redistributed. There is no media headline and no regulatory scrutiny. Far less any ‘national apology.’ Just an expectation that everyone will ‘adjust.’ If one teacher leaves, the rest silently stretch. If five leave, they stretch further. And because teachers have been stretching for decades, the system sees no reason to change. It assumes they will make it work because they always have.


In government schools, this often means a mathematics teacher taking on social science, or a science instructor managing two grades in the same classroom. In colleges, guest faculty are asked to cover entire semesters at short notice, paid by the lecture, with no security and little support. In universities, vacant posts remain unfilled for years, while senior professors quietly absorb extra supervision, examinations and administrative work. None of this is treated as failure. It is normalised as ‘flexibility.’ Over time, what began as an emergency measure has now hardened into operating principle.


In a way, India has become a long-term participant in a masterclass on “waiting for changes in education.” Waiting for teacher-training reforms, waiting for workload norms, waiting for autonomy, waiting for modernisation, waiting for support systems, waiting for budgets - always waiting.


Budget Blindness

Which brings me to February next year. A few months from now, the nation will sit down to watch the annual Budget, hoping that this year, education will receive more than a token mention. Hoping that this might be the moment when we stop treating education as a footnote and start treating it as infrastructure. As I have written before, education ideally deserves a separate, standalone budget, much as the Railways once did when the state recognised that some systems are too foundational to be buried in aggregate accounts. Learning is not a ‘sector’ competing for allocations but an ecosystem that supplies skilled labour, institutional memory and civic capacity to every other sector.


But even if that dream remains distant, the least we can expect is an acknowledgement that India’s education system cannot run on teacher goodwill forever. Goodwill is not a governance model. Sacrifice is not a sustainability plan. A sector that produces every engineer, doctor, scientist, pilot, policymaker and lawmaker cannot be managed like a charitable trust hoping that people will ‘do the right thing.’


If Indigo’s crisis taught us anything, it is that compliance matters even to the most powerful private airlines. If Telangana’s Right to Disconnect taught us anything, it is that governments can intervene swiftly when employee well-being becomes a serious economic concern. So why is teacher well-being treated as a sentimental issue instead of a compliance issue? Why do we have rest norms for pilots but none for teachers? Why do we track pilot training hours down to the minute but cannot enforce structured, meaningful teacher development across states?


The truth is plain: India protects sectors that drive revenue. It hopes that sectors that drive learning will survive on moral strength. But here is the uncomfortable arithmetic. A tired pilot can crash a plane. A tired teacher can crash a generation. The consequences of one are immediate and visible. The consequences of the other are slow, silent, and permanent.


As February 2026 approaches and Budget discussions begin, I hope the nation remembers that teachers are not invisible infrastructure. They are the system. They are the engines. They are the unacknowledged backbone of compliance for every future workforce.


The pilots of the future will be shaped by the teachers of today. And that alone should be reason enough for India to stop waiting finally.


(The writer is a learning and development professional. Views personal.)

 


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