For the moment, India's spending is largely going overseas and not really developing domestic industries. The few examples are so far between and of smaller budgetary scales with the exception of the MKI which is quite a success. This increased level of spending may end up hurting them more unless they reverse the trend and the billions end up in Indian pockets. As their economic growth accelerates, they will only become an increasing "threat" to PRC's influence and political weight in the region. Unless both start settling disputes and work out some effective mechanism in deescalating tensions before they end up as conflict (from media shit-throwing fest to actual shooting war), this level of intolerance for each other is here to stay and will worsen with time, much to the delight and possible intention of western forces. China's perspective is simple, simply outgun and out-develop India in every way possible to reduce potential of conflict in the higher end of Indian threat, and keep borders secure in the lower end i.e. growing overpopulation and social problems in India eventually creating migration issues decades or centuries later.