Journal of Contemporary Politics

Abstract

This research paper provides a comprehensive and critical analysis of the research and development (R&D) budgets allocated by China and India for defence modernisation during the fiscal years 2023 - 24. Drawing on official government reports, international think tank publications, and scholarly analyses, the study employs a mixed-methods analytical research methodology, combining quantitative data on budget allocations with qualitative assessments of geopolitical implications, technological advancements, and policy frameworks. Key findings reveal a stark disparity: Estimated defence R&D spending of China reached approximately $44.4 billion (15% of its SIPRI-estimated $296 billion military expenditure), while allocation of India to the Defence Research and Development Organisation (DRDO) stood at $2.8 billion (about 3.35% of its $83.6 billion total military spend). This gap underscores aggressive push of China toward indigenous technological superiority in areas like hypersonics, cyber warfare, and artificial intelligence (AI), contrasted with more incremental approach of India focused on self-reliance under the Atmanirbhar Bharat initiative. The analysis examines how these budgetary patterns influence military capabilities, regional power dynamics, and global security, highlighting opportunities for India to enhance R&D efficiency through public-private partnerships and increased funding. Limitations include the opacity of official figures of China, which necessitate relying on estimates from sources like SIPRI and the U.S. Department of Defence. Future outlook suggests that without substantial increases, R&D investments of India may struggle to counterbalance advancements of China, potentially exacerbating asymmetries in the Indo-Pacific region.

Keywords: Budget, China, Geopolitics, India, Modernisation, R & D