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<ul><li>The union budget will be presented in the parliament on July 5, 2019. </li><li>The defence forces are hopeful of increased budget allocation as Smt <keyword id="129243" type="PERSON" weightage="20" keywordseo="Nirmala-Sitharaman">Nirmala Sitharaman</keyword> herself is the former defence minister. </li><li>India is the <keyword id="7821032" type="UNKNOWN" weightage="20" keywordseo="fourth-largest-defence-spender">fourth largest defence spender</keyword> globally.</li></ul>The <keyword id="112134" type="COMPANY" weightage="20" keywordseo="Indian-Armed-Forces">Indian armed forces</keyword> expect the Union Budget 2019, to be announced on July 5, to provide more money to modernise and upgrade the country’s defence establishment amidst ever-increasing global and internal challenges. Fuelling this hope is the fact that the newly-appointed Finance Minister Nirmala Sitharaman was in charge of the defence ministry in her last role and therefore, she would be well aware of the challenges and requirements of the forces. The defence budget has increased nearly doubled in the last five years, the first term of the Narendra Modi government. But the money was still not enough to upgrade the weapons because the lion’s share of the allocation for the ministry of defence (MoD) goes into paying salaries and pensions. 
 
 
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 The Indian army has the largest share in the defence budget, more than half. Second in the list comes that <keyword id="15141" type="COMPANY" weightage="20" keywordseo="Indian-Air-Force">Indian Air Force</keyword> followed by the navy, DRDO and ordnance factories. 
 
 
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 INDIA’S GLOBAL RANK In 2018, India became the fourth largest military spender in the world, with the United States of America, China and Saudi Arabia ahead in the list and France at the fifth spot. Global military expenditure also grew 2.6 % to $1.8 trillion in 2018 compared to a year earlier, according to the Stockholm International Peace Research Institute (SIPRI). India’s defence allocation grew 6.5% in the year ending March 2019. Geopolitical tensions are rising around the world- tensions between the <a href="https://www.businessinsider.in/Simple-economics-show-how-Trump-is-beating-up-on-Iran-without-firing-a-shot/articleshow/69934762.cms">US and Iran</a>, simmering conflict in <a href="https://www.businessinsider.in/It-looks-like-the-US-has-been-quietly-lowering-the-threshold-for-conflict-in-the-South-China-Sea/articleshow/69832087.cms">the South China sea</a>, the constantly <a href="https://www.haaretz.com/middle-east-news/.premium-the-iran-crisis-is-exposing-a-far-deeper-conflict-between-trump-and-europe-1.7427507">volatile middle east</a>, and last but not the least <a href="https://www.businessinsider.in/if-india-and-pakistan-have-a-limited-nuclear-war-scientists-say-it-could-wreck-earths-climate-and-trigger-global-famine/articleshow/68207655.cms">India’s own conflict with Pakistan</a> and the <a href="https://www.businessinsider.in/Tensions-are-still-simmering-a-year-after-the-worlds-2-biggest-countries-almost-clashed-over-a-border-at-the-top-of-the-world/articleshow/65507895.cms">threats from China</a>, make the modernisation of India’s military necessary. 
 
 
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 Vintage weapons In 2018, the then Vice Chief of Army Lt Gen Sarath Chand said that 68% of the Army’s equipment is in the ‘<a href="https://www.rediff.com/news/report/sixty-eight-per-cent-of-armys-equipment-is-in-vintage-category/20180313.htm">vintage category</a>’, adding fund crunch will also impact the serviceability of the existing equipment and may even affect payment of instalments for past purchases. It had set up of the Special Forces Division, Defence Cyber Agency, the Defence Space Agency and the Defence Space Research Agency (DSRA). It also came up with the concept of <a href="https://www.businessinsider.in/indian-army-is-setting-up-integrated-battle-groups-along-the-pakistan-border-which-will-be-self-sufficient-to-fight-a-war/articleshow/69884097.cms">Integrated Battle Groups (IBGs)</a>. Insufficient allocation will hit its modernisation at a time when Chinese military is competing to reach the level of the US and Pakistan bolstering capability of its forces, the Army had told a <a href="https://economictimes.indiatimes.com/news/defence/parliamentary-standing-committee-criticises-govt-for-inadequate-allocation-of-funds-to-army/articleshow/67427334.cms?from=mdr">parliamentary panel</a>. SEE ALSO: <a href="https://www.businessinsider.in/indian-army-is-setting-up-integrated-battle-groups-along-the-pakistan-border-which-will-be-self-sufficient-to-fight-a-war/articleshow/69884097.cms">Indian Army is setting up ‘Integrated battle groups’ along the Pakistan border which will be self-sufficient to fight a war</a>

India’s defence budget has nearly doubled in 5 years but the money is not enough to upgrade the weapons

<keyword id="1334" type="LOCATION" weightage="20" keywordseo="China">China</keyword> has the <keyword id="10966626" type="UNKNOWN" weightage="20" keywordseo="strongest-military-force">strongest military force</keyword> in the world while <keyword id="3658" type="LOCATION" weightage="20" keywordseo="India">India</keyword> stands at number four, according to a study released on Sunday by defence website Military Direct. "The USA, despite their enormous military budgets, comes in 2nd place with 74 points, followed by <keyword id="6358826" type="LOCATION" weightage="20" keywordseo="Russia">Russia</keyword> with 69, India at 61 and then France with 58. The UK just about makes the <keyword id="46676" type="ORGANIZATION" weightage="20" keywordseo="top">Top</keyword> 10, coming in 9th place with a score of 43," said the study. The study said "ultimate military strength index" was calculated after taking into consideration various factors including budgets, number of inactive and active military personnel, total air, sea, land and nuclear resources, average salaries, and weight of equipment. China has the strongest military in the world, scoring 82 out of 100 points in the index, it noted. "Based on these scores, which account for budgets, men, and things like air and navy capacity, it does suggest that China would come out as top dog in a hypothetical super conflict," it mentioned. The world's biggest military spender with a budget of USD 732 billion per year is the USA, it noted, adding that China comes second with USD 261 billion, followed by India at USD 71 billion. "China would win by sea, USA by air and Russia by land" in this hypothetical conflict, it said. "USA wins in an aerial war with 14,141 total airships vs Russia with 4,682 and China with 3,587. The <keyword id="126529" type="LOCATION" weightage="20" keywordseo="Russian-Federation">Russian Federation</keyword> wins in a land war with 54,866 vehicles vs USA with 50,326 and China with 41,641," it mentioned. China wins in a sea war with 406 ships vs Russia with 278 and the USA or India with 202, it said. SEE ALSO: <a href="https://www.businessinsider.in/thelife/article/a-4-foot-tall-humanoid-robot-called-doozy-may-just-be-the-party-symbol-for-tamil-nadus-immk-but-it-can-do-much-more-than-that/articleshow/81605666.cms">A 4-foot-tall humanoid robot called Doozy may just be the party symbol for Tamil Nadu’s IMMK, but it can do much more than that</a> <a href="https://www.businessinsider.in/science/space/news/an-asteroid-twice-as-big-as-the-statue[%E2%80%A6]th-tonight-flying-at-100000-kmph/articleshow/81610030.cms">The biggest asteroid of 2021 is going to zoom past Earth tonight flying as fast as 100,000 kmph</a> <a href="https://www.businessinsider.in/tech/mobile/news/oneplus-9r-will-be-the-companys-next-affordable-smartphone-india-launch-confirmed-for-march-23/articleshow/81586104.cms">OnePlus 9R will be the company’s next affordable smartphone, India launch confirmed for March 23</a>

India has world's fourth strongest military, according to Military Direct's study

India increased its military expenditure for FY2014-15 to Rs 2.29 lakh crore - an increase of 12.5% over the previous financial year. In his maiden budget, <keyword id="6355261" type="POSITION" weightage="100" keywordseo="Finance-minister">Finance Minister</keyword> <keyword id="42575" type="PERSON" weightage="100" keywordseo="Arun-Jaitley">Arun Jaitley</keyword>, who also holds the <keyword id="32723" type="COMPANY" weightage="100" keywordseo="Defence">defence</keyword> portfolio, allowed up to 49% foreign direct investment (<keyword id="44528" type="ORGANIZATION" weightage="100" keywordseo="FDI">FDI</keyword>) in defence to boost the development of indigenous hardware. 
 
Jaitley allocated Rs 5,000 crore more than the Rs 2.24 lakh crore allocated in the interim budget presented by the UPA government in February. The defence sector was allocated Rs 2,03,672 crore in FY2013-14. 
 
The finance minister raised the FDI cap in the defence sector from 26% to 49% to attract investments from global arms firms. 
 
"There can be no compromise with the defence of our country. I, therefore, propose to allocate an amount of Rs 2,29,000 crore for the current financial year for defence," Jaitley said in his budget speech in the Parliament. 
 
"Modernisation of the armed forces is critical to enable them to play their role effectively in the defence of India's strategic interests. I, therefore, propose to increase the capital outlay for defence by Rs 5,000 crore over the amount provided for in the Interim Budget," he said. 
 
India has been repeatedly expressing concern over China's rapid development of rail and road infrastructure along the disputed border, including those in Arunachal Pradesh. 
 
"Our domestic manufacturing capacities are still at a nascent stage. We are buying substantial part of our defence requirements directly from foreign players. Companies controlled by foreign governments and foreign private sector are supplying our defence requirements to us at a considerable outflow of foreign exchange," said Jaitley. 
 
"Currently we permit 26% FDI in defence manufacturing. The composite cap of foreign exchange is being raised to 49 per cent with full Indian management and control through the FIPB route," he said.

Jaitley Gives FDI Push To Defence

<ul><li>The Defence Acquisition Council (DAC), chaired by <keyword id="3658" type="LOCATION" weightage="20" keywordseo="India">India</keyword>’s Defence Minister, <keyword id="129243" type="PERSON" weightage="20" keywordseo="Nirmala-Sitharaman">Nirmala Sitharaman</keyword> approved a ₹46 billion contract for new military equipment.</li><li>In the accelerating <keyword id="6828657" type="UNKNOWN" weightage="20" keywordseo="asian-arms-race">Asian arms race</keyword>, India lags behind in both absolute and relative spending. </li><li>Two-thirds of India’s military bill goes toward paying the infantry, leaving little left over for purchasing new weaponry.</li></ul>India’s defence ministry has just <a href="http://pib.nic.in/newsite/pmreleases.aspx?mincode=33">approved the acquisition</a> of new military equipment in a ₹46 billion ($6.5 billion) deal. Their current war chest is quickly becoming obsolete, and this new contract ties in with the Prime Minister <keyword id="6354477" type="PERSON" weightage="20" keywordseo="Narendra-Modi">Narendra Modi</keyword>’s promise of spending ₹17 trillion ($250 billion) towards the modernisation of military technology. This tender is particularly significant because it’s the first time that the India government will be applying the technology from a foreign investor while building the equipment at home. 
 
 
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 India isn’t alone its efforts to build up its arms. The annual defence spending in Asia, on average, has doubled over the century to nearly ₹31.5 trillion ($450 billion). Asian arms race Many <a href="https://www.scmp.com/news/asia/east-asia/article/2135802/asian-arms-race-stoked-chinas-booming-defence-budget-analysts">believe</a> it was China that instigated the arms race when in 2010 their military spending alone accounted for 28% of the military spending across Asia. In 2014, that ratio increased even further to 38%. As per the <a href="https://www.sipri.org/sites/default/files/2018-04/sipri_fs_1805_milex_2017.pdf">Stockholm International Peace Research Institute</a>, the United States led the world with an arms spending of ₹42.7 trillion ($610 billion) while China came in second with ₹16 trillion ($228 billion). India was in 5th place with ₹4.5 trillion ($63.9 billion) as their military expenditure. While India’s spending is a fraction of what other countries are bailing out, it’s still up from ₹3 trillion ($47 billion) in 2012. More than absolute numbers, the proportional increases in budgets are more telling. In Asia, specifically, the largest increases in military spending were seen in Cambodia, Bangladesh, Indonesia and China. Aside from arms, China’s neighbouring nations are also more actively engaged in curating their strategic partnerships to <a href="https://www.businessinsider.in/indo-japanese-relations-hedge-against-chinas-rise-with-their-first-ever-military-exercise/articleshow/65492296.cms">hedge against the risk</a> of the United States failing to contain the Chinese incursions into the South China Sea. Modernisation of India’s military India’s military spending as forever been at the hub of controversy since the <keyword id="474078" type="PERSON" weightage="20" keywordseo="bofors-scandal">Bofors scandal</keyword> in the 1980s. More recently, the deal for the acquisition of 36 Rafale jets off-the-shelf from France instead of 126 fighter jets that would partially be made in India has been in the limelight. Most experts argue that 36 jets are nowhere near enough for India’s requirements. An <a href="https://www.ft.com/content/902e056c-7756-11e2-b95a-00144feabdc0">ad-hoc</a> approach to India’s military strategy would do more harm than good in the long-run. In fact, one of the major issues with India’s military spending has been that more than two-thirds of the budget is allocated towards the salaries of people employed in the armed forces and their respective pensions. While infantry is important, its leaves too little for India to spend on weapons or its own research and development. That being said, the impetus from foreign investments being introduced into the defense sector should catalyse faster growth. (Representative image)

Arms spending in Asia continues as India shells out another ₹46 billion

<keyword id="3658" type="General" weightage="100" keywordseo="india" source="Orion">India</keyword>'s <keyword id="6359526" type="General" weightage="20" keywordseo="military" source="Orion">military</keyword> spending of $76.6 billion ranked third highest in the world followed by the US and <keyword id="1334" type="General" weightage="80" keywordseo="china" source="Orion">China</keyword>, stated Sweden based think-tank -- Stockholm International Peace Research Institute (SIPRI) -- in its report published on Monday. The report stated that India's military spending was up by 0.9 per cent from 2020 and by 33 per cent from 2012. In a push to strengthen the indigenous arms industry, 64 per cent of capital outlays in the military budget of 2021 were earmarked for acquisitions of domestically produced arms. India is facing the threat of a two-front war -- from China and Pakistan. Since 2020, India has been engaged in border dispute at Line of Actual Control with China. The report also stated total global military expenditure has increased by 0.7 per cent in real terms in 2021, to reach $2,113 billion. It stated that the five largest spenders in 2021 were the US, China, India, the UK and Russia, together accounting for 62 per cent of expenditure, according to new data on global military spending. World military spending continued to grow in 2021, reaching an all-time high of $2.1 trillion. This was the seventh consecutive year that spending increased. "Even amid the economic fallout of the Covid-19 pandemic, world military spending hit record levels," said <keyword id="13702792" type="General" weightage="80" keywordseo="diego-lopes-da-silva" source="Orion">Diego Lopes da Silva</keyword>, Senior Researcher with SIPRI's Military Expenditure and Arms Production Programme. "There was a slowdown in the rate of real-terms growth due to inflation. In nominal terms, however, military spending grew by 6.1 per cent." As a result of a sharp economic recovery in 2021, the global military burden -- world military expenditure as a share of world gross domestic product (GDP), fell by 0.1 percentage points, from 2.3 per cent in 2020 to 2.2 per cent in 2021. Meanwhile, the US military spending amounted to $801 billion in 2021, a drop of 1.4 per cent from 2020. The US military burden decreased slightly from 3.7 per cent of GDP in 2020 to 3.5 per cent in 2021. "US funding for military research and development (R&amp;D) rose by 24 per cent between 2012 and 2021, while arms procurement funding fell by 6.4 per cent over the same period. In 2021 spending on both decreased. However, the drop in R&amp;D spending (-1.2 per cent) was smaller than that in arms procurement spending (-5.4 per cent)," the report stated. "The increase in R&amp;D spending over the decade 2012-21 suggests that the United States is focusing more on next-generation technologies," said <keyword id="12676475" type="General" weightage="80" keywordseo="alexandra-marksteiner" source="Orion">Alexandra Marksteiner</keyword>, Researcher with SIPRI's Military Expenditure and Arms Production Programme. The US government has repeatedly stressed the need to preserve the US military's technological edge over strategic competitors. Russia increased its military expenditure by 2.9 per cent in 2021, to $65.9 billion, at a time when it was building up its forces along the Ukrainian border. This was the third consecutive year of growth and Russia's military spending reached 4.1 per cent of GDP in 2021. As it has strengthened its defences against Russia, Ukraine's military spending has risen by 72 per cent since the annexation of Crimea in 2014. Spending fell in 2021, to $5.9 billion, but still accounted for 3.2 per cent of the country's GDP. China, the world's second largest spender, allocated an estimated $293 billion to its military in 2021, an increase of 4.7 per cent compared with 2020. China's military spending has grown for 27 consecutive years. The 2021 Chinese budget was the first under the 14th Five-Year Plan, which runs until 2025. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/top-10-most-expensive-shares-in-india/slidelist/91073430.cms">MRF, Page Industries, Nestle among top 10 stocks that are extremely expensive to buy</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/auto/news/hyundai-motors-profit-up-17-aims-to-sell-4-32-million-vehicles-this-year/articleshow/91073745.cms">Hyundai Motor's profit up 17%, aims to sell 4.32 million vehicles this year</a>

India's military spending 3rd highest in the world, says report

(Eds: Combining related series) New Delhi, Apr 30 () Prime Minister Narendra Modi on Thursday held a series of meetings to discuss strategies to boost the economy amid the COVID-19 pandemic, and attract more foreign investments into India as well as promote local investments. He reviewed the state of investments, the defence and aerospace sector and the mine and mineral sector. An official statement said various strategies to bring investments into India on a fast-track mode and to promote Indian domestic sectors were discussed in the first meeting. The high-level meetings come amid the ongoing global backlash against China. Several companies are now looking for new bases to set up their businesses, according to reports. Detailed discussions were also held on guiding states to evolve their strategies and to be more proactive in attracting investments, the statement said. Reform initiatives undertaken by the various ministries should continue unabated and action should be taken in a time-bound manner to remove any obstacles which impede promotion of investment and industrial growth, the statement said, citing the discussions. The meeting also discussed that a scheme should be developed to promote more "plug and play" infrastructure in the existing industrial lands, plots or estates in the country and provide necessary financing support. During the meeting, Modi directed all concerned that action should be taken for a more proactive approach to "handhold" the investors, to look into their problems and help them in getting all the necessary central and state clearances in a time-bound manner. Given the increasingly worrying economic uncertainty, the government has moved to reassure both global and local investor community with focus on encouraging infrastructure and manufacturing sector investments. While chairing the meet on defence and aerospace, he said India should reduce dependence on imports and take forward the "Make in India" initiative to build its domestic capabilities for designing, developing and manufacturing state-of-the-art defence equipment. The meeting also discussed the potential reforms to ensure a robust and self-reliant defence industry in India that caters to short and long term needs of the armed forces. The meet also discussed initiatives to give a boost to the economy in the backdrop of COVID-19, an official statement said. The discussions involved reforming of the functioning of the ordnance factories, streamlining procurement procedures, focused resource allocation and encouraging research and development. Attracting investment in critical defence technologies and promotion of exports also came up in the meet. The prime minister laid emphasis on positioning India among the top countries of the world in defence and aerospace sectors, from design to production, with active participation of public and private sector fulfilling the twin objectives of self-reliance and exports. He reviewed the proposed reforms for attracting domestic and foreign investment in defence sector. It was discussed that defence expenditure be "economised" and the savings be channelised for strategic defence capital acquisition. Reviewing the mines and mineral sector, Modi laid special focus on improving the country's self-reliance in production of minerals and their in-country processing. Auctioning of additional blocks, encouraging wider participation in auctions, increasing the production of mineral resources, reducing the cost of mining and cost of transporting formed part of the discussion. The deliberations also focussed on increasing ease of doing business while also reducing carbon footprint with environmentally sustainable development. NAB SMNSMNSMN

PM Modi holds series of meetings to boost economy amid coronavirus crisis

Australian Deputy Prime Minister Richard Marles will travel to Ahmedabad to witness the summit clash between <keyword id="3658" type="General" weightage="100" keywordseo="india" source="Orion">India</keyword> and <keyword id="6355478" type="General" weightage="80" keywordseo="australia" source="Orion">Australia</keyword> at the <keyword id="3859" type="General" weightage="20" keywordseo="cricket-world-cup" source="Orion">cricket World Cup</keyword> on Sunday. Marles, who is also Australia's <keyword id="32723" type="General" weightage="80" keywordseo="defence" source="Orion">defence</keyword> minister, and Foreign Minister Penny Wong are visiting India to co-chair the second edition of the "2+2" ministerial dialogue along with their Indian counterparts on Monday. The defence ministry on Saturday announced the Australian deputy prime minister's two-day visit to India from November 19-20 primarily for the "2+2" dialogue that is expected to focus on boosting the overall defence and strategic ties between the two countries. It said Marles will also attend the cricket World Cup final between India and Australia on Sunday. "Australian Deputy Prime Minister and Minister for Defence Richard Marles will visit India from November 19 to 20 to co-chair the second India-Australia 2+2 ministerial dialogue with Defence Minister Rajnath Singh," the ministry said in a statement. The Indian delegation at the "2+2" dialogue will be led by Singh and External Affairs Minister S Jaishankar. "During his visit, Minister Marles will also attend the Cricket World Cup final between India and Australia in Ahmedabad, Gujarat on November 19," the ministry said. It said Singh and Marles will hold a bilateral meeting on November 20 that would be followed by the "2+2" dialogue. "India and Australia are pursuing a comprehensive strategic partnership and the visit of Minister Marles is expected to give further impetus to the collaboration as well as bilateral defence cooperation," the defence ministry said. "The two countries are expected to discuss wide-ranging issues of mutual interest during the 2+2 dialogue and the bilateral defence ministers' meeting," it added. The two sides are expected to focus extensively on further ramping up the overall defence and security ties and boost the strategic cooperation in the Indo-Pacific region during the "2+2"dialogue. Both Australia and India are part of the Quad or Quadrilateral coalition that is focused on working towards ensuring a free, open and inclusive Indo-Pacific. The other two members of the Quad are the United States and Japan. The situation in West Asia in view of the Hamas-Israel conflict, China's increasing military muscle flexing in the Indo-Pacific and issues relating to regional security is expected to figure in the talks, people familiar with the preparation for the dialogue said. The inaugural "2+2" ministerial dialogue between India and Australia took place in September 2021. India has such a framework for talks with a very few countries, including the US and Japan. The latest edition of the India-US foreign and defence ministerial dialogue took place in New Delhi on November 10. The bilateral defence and strategic ties between India and Australia are on an upward trajectory in the last few years. In June 2020, the two countries elevated their ties to a comprehensive strategic partnership and signed a landmark deal for reciprocal access to military bases for logistics support. The <keyword id="10796857" type="General" weightage="50" keywordseo="mutual-logistics-support-agreement" source="Orion">Mutual Logistics Support Agreement</keyword> (<keyword id="449908" type="General" weightage="50" keywordseo="mlsa" source="Orion">MLSA</keyword>) allows the militaries of the two countries to use each other's bases for repair and replenishment of supplies, besides facilitating scaling up of the overall defence cooperation. SEE ALSO: <a href="https://www.businessinsider.in/sports/webstories/ind-vs-aus-icc-world-cup-final-past-battles-head-to-head-record-and-more/slidelist/105309620.cms">India vs Australia ICC World Cup final – Past battles, head-to-head record and more</a> <a href="https://www.businessinsider.in/business/telecom/news/jio-strengthens-market-leadership-with-3-25-mn-new-subscribers-vis-decline-slows/articleshow/105289414.cms">Jio strengthens market leadership with 3.25 mn new subscribers, Vi’s decline slows</a> <a href="https://www.businessinsider.in/tech/news/indias-pc-market-surges-to-4-5-million-devices-in-q3-2023/articleshow/105285251.cms">India’s PC market shipments surge in Q3 amidst import restrictions talks</a>

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India’s defence budget has nearly doubled in 5 years but the money is not enough to upgrade the weapons

BI India Bureau

India has world's fourth strongest military, according to Military Direct's study

PTI

Jaitley Gives FDI Push To Defence

BI India Bureau

Arms spending in Asia continues as India shells out another ₹46 billion

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India's military spending 3rd highest in the world, says report

IANS

PM Modi holds series of meetings to boost economy amid coronavirus crisis

PTI

Australian Deputy PM Marles to watch India-Australia World Cup cricket final in Ahmedabad

PTI

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