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Defence Spending Can Fuel Growth, Says CDS Anil Chauhan As India Rethinks Guns Versus Butter Debate

20904 views | Jan 10, 2026, 12:06:32 PM | TOI.in
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Chief of Defence Staff General Anil Chauhan has offered rare insight into how India views defence spending in an era of economic expansion and strategic competition. Rejecting the old guns versus butter argument, the CDS said defence expenditure, if handled smartly, can directly contribute to national growth. He highlighted a major shift in procurement policy, noting that most military purchases now come from Indian manufacturers, generating employment, strengthening industry, and sending tax revenue back to the government through GST. On the question of budget size, General Chauhan said India’s allocation, currently just under 2 percent of GDP, is adequate if the economy continues to grow at a healthy pace with stable inflation. He acknowledged that some high-ticket acquisitions may require short-term budget spikes but stressed that long-term modernisation plans remain sustainable. The remarks signal a strategic recalibration where defence preparedness, economic resilience, and industrial self-reliance move forward together.

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