An issue of capital
FWD Business|February 2017

Capex allocation and defence preparedness.

Adarsh Kavungal
An issue of capital

Surgical strikes of 2016 by the Indian Army deep across and along the Line of Control was a turning point in the history of Indian geo politics post 1971 and 1998 Nuclear tests. Prime Minister Narendra Modi and BJP promised in their election manifesto about their resolve to have a strong posture against external enemies. The decision to appoint General Bipin Rawat as the Chief of Indian Army, the man behind the surgical strikes in Myanmar should be seen as the bugle call of Indian intention and posture in the near term.

Chinese intentions on how they plan to deal with India, a regional rival and competitor is absolutely clear for every China- Analyst. China tested Nuclear devices for Pakistan in their Lop Nor test range with the sole purpose to counter India. The Chinese plans to pin India and its ambitions firmly within its territorial boundaries and not allow space for India to realise her true potential either geo politically or economically. It is often said; the Chinese will try to fight the Indians to the last Pakistani if possible. The Indian economy is one of the few bright spots out there though demonetization will have its dampening effects for the coming year and half. While there hasn’t been any significant increase in the revenue for the government, the least expected out of the current government was status quo, were the current GDP to Defence budget ratios were to be maintained.

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