Answering a question whether India has any future plan to respond to the Chinese Navy, Admiral Singh said that the Indian Navy has to see how it can match China's “intent”, given its limited budget and resources.
"Lot of resources have been shifted from other arms to the PLA (People’s Liberation Army) Navy obviously in line with their intention to become a global power... We have to watch that and see how we can respond within our budget and constraints that we have", Singh said while interacting with the media on the side-lines of the international seminar "Nation Building through Ship Building" in New Delhi on Thursday.
The statement came a day after a document titled "China's National Defence in the New Era" showcased a growing emphasis on the Chinese Navy. It also suggested that Beijing is also looking well beyond China’s military role in the Pacific.
The paper notes: "The PLA actively promotes international security and military cooperation and refines relevant mechanisms for protecting China’s overseas interests. To address deficiencies in overseas operations and support, it builds far seas forces, develops overseas logistical facilities, and enhances capabilities in accomplishing diversified military tasks".
Against a huge shortage for modernisation in the budget in the previous year, the Indian Navy has received only $3.2 billion from the country's annual budget 2019-20; an increase of around 10.9% in comparison to the 2018-19 budget.
Of this, $1.7 billion is to be used for naval fleet modernisation and only $347 million for aircraft and aero-engines. However, the Indian Navy has made a projection of around $5 billion towards capital acquisition.
The Parliamentary Standing Committee report on Defence revealed a shortfall of around $1.5 billion, or 40%, of the total committed liabilities in 2018-19 alone.
The Indian Navy confided to the committee that this has been the case for the last three financial years.
Amid a growing presence of the Chinese Navy in the Northern Indian Ocean Region, the Indian Navy could not manage procurement of naval assets as per the requirement and the "budget is managed through the financial year by deferring certain committed liability payments so that a certain amount can be earmarked for the purpose of modernisation and implementation of new schemes".
Due to shortfalls in budgetary allocations, crucial projects related to frigates, aircraft carriers, naval offshore patrol vessels, fast interceptor crafts, and naval helicopters have been delayed for years.
Nevertheless, Indian Navy Chief Singh expects that the submarine building "Project 75 I" and the naval helicopter project will be rolled out sooner. Singh said that he expects the contract for 24 multi-role helicopters to be materialised by the year-end.
