Actual defence budget is about $37 billion (at today's ruppee-USD ER), another $13-14 billion on top of that is for pensions but are not strictly part of the defence allocation but lumped together and that's how you get the $51 billion USD defence budget- if you think that is represenatative of defence budget of India you are sorely mistaken, only about $11BN will actually be allocated for defence purchases (CAPEX) the rest, as I have said, goes to pensions and revenue expenditure (OPEX).
+ It makes absolutely no sense to lump in the budgets of the CAPFs, they are police forces under an entirely different ministry (MHA) why would you include them in the MoD's defence budget? No one counts the US's DHS budget as part of the DoD's defence budget.
The defence spending has actually remained rather static for the past 3-4 years but as India's GDP grows the defence budget as a proportion of GDP has begun to decline, in 2013-14 the defence budget (of similar size) was 1.78% of GDP and now it is 1.65% of GDP.
@PARIKRAMA @anant_s @kaykay