Defence expenditure, defence economy: India
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Defence Imports of India
India's defence imports 40 times its export basket
Rajat Pandit The Times of India Nov 29 2014
Paid Foreign Vendors Over Rs 1LCr In Last 5 Years: Parrikar
Prime Minister Narendra Modi may want India to start exporting weapons in a major way instead of importing them in large numbers, but it will take a lot of doing. Latest figures show that India's arms imports are a staggering 40 times the size of its exports, and will remain so for the foreseeable future. Defence minister Manohar Parrikar has told Parliament that the total expenditure on “direct payments to foreign vendors for capital acquisitions“ for the army, navy and air force during the last five years stood at Rs 1,03,535 crore ($16.72 billion).
In sharp contrast, as per a written reply in Lok Sabha on Friday , the five defence PSUs, four shipyards and 39 ordnance factories as well as the private sector, all put together managed to export defence equipment worth just a paltry Rs 1,644 crore in the last three years. The figure in the first six months of the ongoing fiscal stands at just Rs 167 crore.
India has the dubious distinction of being the world's largest arms importer due to a stagnant defence-industrial base (DIB), which forces the armed forces to acquire 65% of their requirements from abroad.
The Modi government's rhetoric on the “Make in India“ policy with greater private sector participation in the defence production sector will take several years -if at all it does materialize on the ground. It will need sweeping systemic reforms to revive the country's DIB from its prolonged stupor.
Sources, however, said the defence ministry is now working to “streamline“ the “complicated“ indigenous defence production policy .There is an attempt, for instance, to revive the provision for the government to fund 80% of the development cost of a weapon prototype, with the industry chipping in with 20%, in “high-risk projects“.
The battle has to be fought on two fronts. First, a radical overhaul of the functioning of DRDO, defence PSUs, Ordnance Factory Board and shipyards is needed to ensure they can deliver cutting-edge weapons in a cost-effective and timely manner.
Concomitantly , the private sector has to be encouraged to enter defence pro duction in a major way .“There has to be concrete government support with confirmed orders since defence projects are capital-intensive and have long-gestation periods,“ said an officer.
India will remain strategically vulnerable till it builds a robust DIB since supplies can be choked in times of need. China has assiduously built a strong DIB, making it the world's thirdlargest arms exporter, even though it also remains the third-largest importer.
India also does not get the biggest bang for its buck.There is no concrete planning to build military capabilities, with the three Services continuing to squabble over the limited budgetary pie. Consequently , the armed forces continue to grapple with huge deficiencies in equipment.
Shortage of items: Indian Army
Army needs 4L balaclavas, 2L boots
Chethan Kumar, Jan 08 2015
With one of the worst winters in the pipeline, the Indian Army is facing a shortage of items like high-ankle boots and balaclavas, lakhs of which still need to be procured. Air Marshal PP Reddy , chief of Integrated Defence Staff,said India needs to be prepared for war on both fronts, China and Pakistan. But how equipped are our soldiers in high-altitude regions? The third report of the standing committee on defence 2014-15, submitted on December 22, 2014 points that there's a shortage of 2.17 lakh boots (high ankle), 4.47 lakh balaclavas and 65,978 durries (thick cotton quilts), all basic requirements in high-altitude areas. Besides, there's a shortage of 13.09 lakh canvas shoes and mosquito nets.
Member of Parliament from Belagavi and committee member Suresh Angadi told TOI, “This has been plaguing the Army for a while now. Even when Atal Bihari Vajpayee was Prime Minister, strict instructions were given by the government to procure all the necessary articles for soldiers but it has not happened. Even now, we've told officials to expedite the pro curement process.“
The report quoting ViceChief of Army Staff (VCOAS) Lt Gen Philip Campose on how the Army is managing the Mountain Strike Corps given the lack of equipment, says the Army is falling back on war wastage reserves. “We are holding War Wastage Reserves of all sorts of equipment, weapons, and stores.All this has been taken out from the WWR and given to the new raisings,“ he told the committee.
The defence ministry has set March 16, 2015 as deadline for procurement of the items.
2017: India, China, major countries
Defence spend as percentage of GDP has fallen world over, March 26, 2018: The Times of India
Defence expenditure as a percentage of the GDP
Defence expenditure in absolute terms
The major arms suppliers
The major arms recipients
From: Defence spend as percentage of GDP has fallen world over, March 26, 2018: The Times of India
India’s defence forces have expressed unhappiness over the allocation for them in the Union Budget which, at 1.56% of the GDP, was the lowest since 1962, when India and China fought a war. But the defence budget as a part of the GDP has actually been shrinking across the world...
Is India the only country whose defence bill as percentage of GDP has reduced?
• Government allocated Rs 2.74 lakh crore for defence in the 2018 budget. This will amount to 1.56% of the country’s GDP, making this allocation the lowest ever in terms of share of GDP. The analysis of budget allocations as a percentage of GDP for other major economies shows a similar pattern. As an economy grows, the proportion of its defence expenditure as compared to its overall size is bound to fall. This pattern is followed in most of the countries.
Are these countries making their own armaments?
• No. Many of these countries that top defence expenditure are dependent on import of defence equipment. In 2017, India was the world’s second-largest ar ms importer.
Which are the world’s largest arms suppliers?
• US followed by Russia are the world’s largest arms suppliers. Together they dominate the global arms market by a huge margin as compared to other countries.
In absolute terms, which country spends the highest on defence?
• US by far spends the highest on its defence. America’s total defence expenditure is roughly equal to the defence expenditure of the next nine highest- spending countries.
See also
Defence imports, arms imports: India, Pakistan
Defence procurement: South Asia
