First of all, it's nonsense to base Indian defence spending on Chinese defence spending! They have totally different requirements than we have.
Secondly, spending more is only one solution, but the better one is to use the available money in a more effective way, without wasting too much, by combining requirements of different forces in one, or reducing the overlap of requirements (combat helicopters for IA and IAF for example).
The latter is maybe our bigger problem, because our forces are not looking at a combined defence situation, but looking at their own needs only. There is no need to evaluate and procure different quick reaction SAMs for IA and IAF, nor different helicopter launched ATGMs for IA and IAF, different martime patrol aircrafts for IN or ICG, the same transport aircrafts in own evaluations and procurement for IAF and BSF...
So beeing more effective in using the available money should be the first aim, which automatically would free additional funds for other stuff, but asking for more money is often easier way, just not necessarily the best.