By A Correspondent

Pune (Maharashtra): India’s defence spending is no longer a trade-off between national security and economic welfare, Chief of Defence Staff (CDS) General Anil Chauhan said on January 9, 2026, arguing that smart deployment of resources can ensure that “guns” directly contribute to “butter” by boosting revenue, employment, and industrial growth.

Speaking at the Pune Public Policy Festival, General Chauhan addressed the long-running debate over defence expenditure versus social welfare, asserting that India’s evolving procurement strategy has fundamentally altered the equation.

With the armed forces increasingly sourcing equipment from domestic manufacturers, defence spending is now feeding back into the economy through taxation, job creation, and industrialisation.

“There has always been a debate between guns and butter. But if we play smartly, one can contribute to the other,” the CDS said.

“Over the past three years, most of our procurements have been from domestic sources. Once we do that, we are paying 18% GST, which goes back to government funds. It helps generate employment and revenue through industrialisation. This is a change of strategy.”

Defence Budget, GDP Growth and Modernisation

On the size of India’s defence budget, currently just under 2% of GDP, General Chauhan said sustained economic growth would be the key to executing the armed forces’ modernisation plans without fiscal stress.

He suggested that if India’s GDP continues to grow at around 8%, inflation remains low, and defence allocations rise by about 10% annually, most modernisation requirements could be met smoothly.

“Except for some high-ticket purchases, where a temporary spike may be required, the allocation should stabilise thereafter,” he said, indicating confidence in the long-term sustainability of India’s defence planning.

A New Era of Warfare

The CDS underlined that India’s modernisation roadmap is being reshaped by a fundamental transformation like warfare itself.

Moving away from the earlier framework of balancing obsolete, contemporary, and futuristic equipment, General Chauhan said the armed forces are now preparing for what he described as the “third revolution in military affairs.”

“The first revolution was manoeuvre warfare, the second was net-centric warfare. Today, we are at the cusp of the third convergence: an intelligent, data-centric form of warfare,” he explained.

Under this revised thinking, capability development is being recalibrated to account for emerging domains such as cognitive, electromagnetic, cyber, and space warfare.

He outlined a conceptual allocation model in which roughly 60% of resources support conventional and manoeuvre warfare, 30% underpin net-centric operations, and 10% are dedicated to advanced cognitive and intelligent systems, including non-nuclear deterrence capabilities.

Overhauling Procurement and Planning

General Chauhan said procurement processes are also undergoing significant reform. The armed forces are moving away from procurement plans strictly derived from the Integrated Capability Development Plan (ICDP), instead relying more heavily on Operational Research and Scientific Analysis (ORSA) studies.

“These studies help us determine the right equipment in terms of numbers and quantities, aligned precisely with operational requirements,” he said, stressing that evidence-based planning will prevent both shortages and wasteful over-acquisition.

Operational Role of the CDS Clarified

Addressing questions about his role in military operations, including during Operation Sindoor, the CDS clarified that the post does not exercise direct command over the three service chiefs. However, he emphasised that this does not mean the CDS lacks an operational role.

“As the permanent chairman of the Chiefs of Staff Committee, most decisions in operations like Sindoor were taken collectively. That gives me an operational role,” he said.

He added that the CDS has a direct operational mandate in new warfare domains such as space, cyber, cognitive, and electromagnetic arenas, which fall directly under integrated defence structures.

Assessing the Multi-Front Threat

On concerns about a potential three-front challenge involving Pakistan, China, and Turkey, General Chauhan urged a nuanced assessment. He noted that Turkey does not share a border with India and that there is no formal military alliance binding the three countries.

“Coming to each other’s aid can take many forms, and we must factor that into our calculations,” he said.

Citing Operation Sindoor, the CDS highlighted India’s contingency planning and force mobility, noting that assets can be rapidly redeployed between fronts as part of established operational plans.

Finally, on growing technological cooperation among adversaries, General Chauhan said India remains vigilant. “We are constantly assessing what technologies they are acquiring and how these will affect future warfare.

Accordingly, we are taking measures,” he said, underscoring India’s focus on preparedness in an increasingly complex security environment.

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