While Covid-19 has forced governments around the world to cut spending, it has done much damage to India’s defense procurement. Due to Corona, India’s defense ministry has slashed its budget for the first three months of the current fiscal (April-June) by 15-20 per cent.
Corona’s blow to the defense sector first became apparent last Thursday when Defense Minister Rajnath Singh announced the abolition of 9,300 posts in the Military Engineering Service (MES).
The ministry said this was done to restructure defense spending and increase combat capability. The posts were abolished from the industry department of MES. It had a manpower of 13,157. On April 6, a circular from the finance ministry directed all ministries to reduce spending. Experts believe that if this trend continues in the next quarter, up to 40% of India’s defense budget could be ‘vanished’.