International Journal on Science and Technology

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Public Willingness to Pay for Indigenous Strategic Defense Aircraft in India: Evidence from a Contingent Valuation Study

Author(s) Prithvi Sharma
Country India
Abstract This study examines public willingness to pay (WTP) for indigenous strategic defense aircraft in India, addressing a critical gap in defense economics and public finance literature, which has largely overlooked citizen-level fiscal acceptance of long-horizon military modernization. As India advances defense indigenization under the Atmanirbhar Bharat framework, understanding behavioral and institutional drivers of public support is essential for democratic legitimacy and sustainable defense financing.
The study adopts a quantitative, cross-sectional design and applies the Contingent Valuation Method (CVM) to estimate stated WTP for funding indigenous fifth-generation combat aircraft such as the Advanced Medium Combat Aircraft (AMCA). Primary data were collected from N = 250 Indian adults using a stratified quota-based sampling approach to capture variation across gender, income, urban–rural location, and age cohorts. Power analysis (G*Power 3.1) indicated that this sample size provides over 90% statistical power to detect medium effect sizes (f² = 0.15–0.25) in multivariate regression models at α = 0.05. The survey employed single-bounded dichotomous choice referendum formats, follow-up payment ladders, and certainty calibration to reduce hypothetical bias. Multiple payment vehicles, including direct taxation, defense cess, and indirect fuel surcharges, were experimentally framed to test scope sensitivity and robustness.
Econometric analysis combined logistic regression, hierarchical modeling, and mediation testing to evaluate behavioral and institutional determinants of WTP. Results indicate that perceived external security threat is the strongest predictor of fiscal acceptance, followed by national identity and pride. Institutional trust significantly mediates the relationship between threat perception and WTP, underscoring the role of governance credibility in public goods provision. Socio-economic factors, including income, education, and urban residence, are positively associated with WTP, whereas prioritization of welfare spending moderates support for defense financing.
The study contributes to the non-market valuation literature by extending contingent valuation to defense indigenization in a large developing democracy. It also integrates behavioral economics, identity economics, and security perception frameworks to explain public support for strategic autonomy under geopolitical uncertainty. Policy implications highlight the importance of transparent procurement, targeted communication strategies, and progressive financing mechanisms to enhance public acceptance of long-term indigenous defense capability development.
Keywords Contingent valuation method; Willingness to pay; Defence economics; Defence indigenisation; Public goods; Strategic autonomy; National security; Behavioural economics; Identity economics; Institutional trust; Threat perception; Defence financing; Advanced Medium Combat Aircraft (AMCA); Public finance; India
Field Engineering
Published In Volume 17, Issue 1, January-March 2026
Published On 2026-03-01
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