West threatens to halt aid if defence budget is hiked

Western countries are against India increasing its defence budget.

Pressure is mounting and veiled threats are being heaped on New Delhi, warning that loans from international lending agencies like the World Bank and the International Monetary Fund would be jeopardised if India pumps more money into defence.

Senior government officials pointed out that the pressure comes mainly from the United States. Washington argues that, as Pakistan has agreed not to increase its defence budget, India, too, must follow suit.

Several other Western countries also feel that India should not fritter away precious resources on ''futile exercises'' like increasing the defence budget, the officials said.

Rejecting the viewpoint, the officials said the defence budget has seen a marginal hike of 10 per cent in the last five years.

Considering factors like inflation, the real hike is only five to six per cent, a bulk of which has gone towards the pay of armed forces personnel.

So severe is the funds crunch, said the officials, that it is difficult to even repair and service defence equipment.

Asked whether the US would continue exerting pressure on Russia asking it not to sell sophisticated arms to New Delhi, the officials said that such a possibility could not be ruled out. ''Indications are that Moscow would honour its commitment to India.'' The officials declined to elaborate, saying that there was no reason to doubt Moscow's commitment to New Delhi.

Several defence ministry sources, however, fear that the West would apply relentless pressure on Russia to stop sophisticated arms exports to India.

Strengthening their apprehensions is Russia's decision to stall the transfer of cryogenic engine design to India following the US arm-twisting. Moscow also asked New Delhi to return the nuclear-powered submarine, INS Chakra for the same reason.

Giving the navy blue water capability -- it can remain submerged for three to four days against the conventional submarines's 12 hours -- the submarine ''made Pakistan feel highly insecure''. Or, so the US told Moscow.

Raising the bogey of ''unfair advantage'' to India, Washington ensured that the submarine's three-year lease was not renewed.

Significantly, Defence Minister Mulayam Singh Yadav had reiterated that external pressure against defence projects would be ignored.

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