India defence budget analysis since 2000 (Just some fun with numbers)

Discussion in 'Defence & Strategic Issues' started by ezsasa, Aug 2, 2014.

  1. ezsasa

    ezsasa Senior Member Senior Member

    Joined:
    Jul 12, 2014
    Messages:
    3,541
    Likes Received:
    3,066
    Location:
    Hyderabad, Andhra Pradesh, India
    I have been for a couple of years been interested in our defence spending, which seems to be increasing at an average of more than 10 Percent every year. On the other hand i kept hearing about the delayed project. So i thought why don’t i do an analysis of the defence procurement starting from year 2000 onwards.

    So it looks like we have spent about 452.78 billion USD so far. Idea was to check if sum of money spent on big ticket items comes close to this amount. I have taken 70% as wage cost and operational cost for defence personnel and equipment. That leaves 30% for buying new defence items i.e 135.83 billion USD. R&D cost is kept at 2% of total budget.


    Data has been collated based on the following criteria.

    1. Procurements done after year 2000
    2. Incase of doubt the production of the item should have started after 2000
    3. Numbers bought or available is taken primarily from wikipedia
    4. Contract amount or item cost has been taken from wikipedia or IHS jane’s
    5. Items whose numbers are in doubt like missiles have not been counted.
    6. Future procurement deals are yet to be counted, assuming companies will be paid after delivery of item.
    7. I have not counted new ITBP battalions on china border.
    8. Equipment inducted after year 2000. For ex: All Arjun tanks&Sukhoi have been counted based on unit price, BMP2 up gradation has been counted, BMP 2 purchase could not be counted.

    Year on Year India Defence Budget

    Years -Defence budget (in USD Billions)
    2000 -21.7
    2001 -22.5
    2002 -22.4
    2003 -22.9
    2004 -26.6
    2005 -28.1
    2006 -28.3
    2007 -28.7
    2008 -32.1
    2009 -35.8
    2010 -34.81
    2011 -34.19
    2012 -38.68
    2013 -37
    2014 -39

    Total -452.78


    List of all Major defence procurements i could gather by name and amount in USD(BILLIONS)



    TOTAL PROCUREMENT BUDGET -135.834
    Vikramaditya -2.350
    INS CHAKRA -0.200
    INS ARIHANT -2.900
    INS ARIHANT -0.156
    INS Jalashwa -0.500
    INS KOLATA -3.000
    SHIVALIK CLASS DESTROYERS -1.200
    TALWAR CLASS -1.600
    INS Kamorta -0.500
    INS SARYU CLASS -0.200
    INS CAR NICOBAR CLASS -0.083
    INS DEEPAK -17.940
    INS MAKAR -13.300
    sukhoi -37.636
    TEJAS DEVELOPMENT COST -1.300
    C-17 -5.800
    C-130J -1.500
    Beriev A-50 AWECS -1.500
    EMB-145 AWECS -0.385
    BAE HAWK -1.825
    Pilatus PC-7 -1.000
    MI-17 -1.300
    HAL DHRUV -0.742
    MIG-29K -1.500
    BOEING P8 -1.500
    DORNIER DO 228 -0.266
    IAI HAROP -0.100
    IAI HERON -0.500
    DRDO LAKSHYA -0.019
    DRDO NISHANT -0.053
    IAI SEARCHER -0.750
    ARJUN TANK -0.719
    T-90S -2.030
    BMP-2 SARATH UPGRADE -1.200
    R&D -9.056

    SUM TOTAL EXPENSE -114.610



    So the rough total i am getting is 114.6096 billion USD. That leaves roughly 21.224 billion USD.

    So Guys feel free to check and add items if i have missed something. Objective is to bring down the remaining 21 billions as much down as possible. Remember to ensure that you are not double count any of the items already existing or mentioned by other members.

    In conclusion i must say we have spent a lot of money on big ticket items last decade, and now based on the news reports this decade hopefully spending will be increased on foot soldier related equipment like new carbine etc.


    Cheers.
     
  2.  
  3. Zebra

    Zebra Senior Member Senior Member

    Joined:
    Mar 18, 2011
    Messages:
    6,009
    Likes Received:
    2,251
    Re: India defence budget analysis since 2000(Just some fun with number

    ^^

    Cost of INS Vikramaditya (as per wiki) is $2.35 billions, whereas cost of INS Makar (as per wiki) is $1.33 millions each.

    In future more 5 of them are coming. At present they are at different stages before they can join the fleet.
     
    TrueSpirit1 likes this.
  4. ezsasa

    ezsasa Senior Member Senior Member

    Joined:
    Jul 12, 2014
    Messages:
    3,541
    Likes Received:
    3,066
    Location:
    Hyderabad, Andhra Pradesh, India
    Re: India defence budget analysis since 2000(Just some fun with number

    Thank you casper for the correction regaring INS MAKAR.
    Oh dear difference amount goes upto 34 billion USD now.:pound:

    TOTAL PROCUREMENT BUDGET IN BILLION USD 135.834
    Vikramaditya 2.350
    INS CHAKRA 0.200
    INS ARIHANT 2.900
    INS ARIHANT 0.156
    INS Jalashwa 0.500
    INS KOLKATA 3.000
    SHIVALIK CLASS DESTROYERS 1.200
    TALWAR CLASS 1.600
    INS-Kamorta 0.500
    INS SARYU CLASS 0.200
    INS CAR NICOBAR CLASS 0.083
    INS DEEPAK 17.940
    INS MAKAR 0.133
    sukhoi 37.636
    TEJAS DEVELOPMENT COST 1.300
    C-17 5.800
    C-130J 1.500
    Beriev A-50 AWECS 1.500
    EMB-145 AWECS 0.385
    BAE HAWK 1.825
    Pilatus PC-7 1.000
    MI-17 1.300
    HAL DHRUV 0.742
    MIG-29K 1.500
    BOEING P8 1.500
    DORNIER DO 228 0.266
    IAI HAROP 0.100
    IAI HERON 0.500
    DRDO LAKSHYA 0.019
    DRDO NISHANT 0.053
    IAI SEARCHER 0.750
    ARJUN TANK 0.719
    T-90S 2.030
    BMP-2 SARATH UPGRADE 1.200
    R&D 9.056
    SUM TOTAL EXPENSE 101.443
    DIFFERENCE AMOUNT 34.391
     
    sachin3 likes this.
  5. Pulkit

    Pulkit Satyameva Jayate "Truth Alone Triumphs" Senior Member

    Joined:
    Apr 17, 2014
    Messages:
    1,342
    Likes Received:
    351
    Location:
    India
    Re: India defence budget analysis since 2000(Just some fun with number

    Is the maintenance cost part of it or not...?
    I mean spare parts etc etc?
     
  6. ezsasa

    ezsasa Senior Member Senior Member

    Joined:
    Jul 12, 2014
    Messages:
    3,541
    Likes Received:
    3,066
    Location:
    Hyderabad, Andhra Pradesh, India
    Re: India defence budget analysis since 2000(Just some fun with number

    Pulkit
    In 2013 budget Revenue expenditure (salaries, pensions, and maintenance of current equipment) Vs Capital Expenditure (New hardware) is around 60:40 , I have given an additional 10% for this as a buffer.
     
  7. p2prada

    p2prada Stars and Ambassadors Stars and Ambassadors

    Joined:
    May 25, 2009
    Messages:
    10,233
    Likes Received:
    3,896
    Location:
    Holy Hell
    Re: India defence budget analysis since 2000(Just some fun with number

    The capital budget has been much higher than 30%. more like 60:40

    Use links like these to give you an idea about the defense budget.

    India’s Defence Budget 2013-14: A Bumpy Road Ahead | Institute for Defence Studies and Analyses

    ..:: India Strategic ::. MoD Updates: India's Defence Budget 2013-14

    These two websites give a pretty good breakdown of the budget.

    As for where it has been spent, it is much higher than what you have quoted for the same equipment since there is inflation added to long term contracts.
     
  8. Pulkit

    Pulkit Satyameva Jayate "Truth Alone Triumphs" Senior Member

    Joined:
    Apr 17, 2014
    Messages:
    1,342
    Likes Received:
    351
    Location:
    India
    Re: India defence budget analysis since 2000(Just some fun with number

    Okay ....
    Try replying with quote.... or @ ....otherwise i wud hve missed it....


     
  9. ezsasa

    ezsasa Senior Member Senior Member

    Joined:
    Jul 12, 2014
    Messages:
    3,541
    Likes Received:
    3,066
    Location:
    Hyderabad, Andhra Pradesh, India
    Re: India defence budget analysis since 2000(Just some fun with number

    One more correction INS Deepak class fuel tanker costs 160 Million euro a piece and we have two such vessels.

    Correcting the list again...
    Difference amount is up again to around 52 Billion USD

    TOTAL PROCUREMENT BUDGET - 135.834
    Vikramaditya - 2.350
    INS CHAKRA - 0.200
    INS ARIHANT - 2.900
    INS ARIHANT - 0.156
    INS Jalashwa - 0.500
    INS KOLKATA - 3.000
    SHIVALIK CLASS DESTROYERS - 1.200
    TALWAR CLASS - 1.600
    INS-Kamorta - 0.500
    INS SARYU CLASS - 0.200
    INS CAR NICOBAR CLASS - 0.083
    INS DEEPAK CLASS - 0.384
    INS MAKAR - 0.133
    sukhoi - 37.636
    TEJAS DEVELOPMENT COST - 1.300
    C-17 - 5.800
    C-130J - 1.500
    Beriev A-50 AWECS - 1.500
    EMB-145 AWECS - 0.385
    BAE HAWK - 1.825
    Pilatus PC-7 - 1.000
    MI-17 - 1.300
    HAL DHRUV - 0.742
    MIG-29K - 1.500
    BOEING P8 - 1.500
    DORNIER DO 228 - 0.266
    IAI HAROP - 0.100
    IAI HERON - 0.500
    DRDO LAKSHYA - 0.019
    DRDO NISHANT - 0.053
    IAI SEARCHER - 0.750
    ARJUN TANK - 0.719
    T-90S - 2.030
    BMP-2 SARATH UPGRADE - 1.200
    R&D - 9.056
    SUM TOTAL EXPENSE - 83.887
    DIFFERENCE AMOUNT - 51.947

    Guys don't mind the corrections :namaste:. As and when i find new information in news articles or MOD PR releases i will be updating to correct the list to the extent possible.

    Appreciated if anybody can find more items that can be added to take the total cost atleast to 130 billion USD , Right now total is at around 83 billion USD and the difference amount is around 51 billion USD i.e around 3 lakh crores.
     
  10. HMS Astute

    HMS Astute Regular Member

    Joined:
    Jul 26, 2014
    Messages:
    802
    Likes Received:
    230
    Location:
    Italy
    Last edited: Aug 7, 2014
  11. HMS Astute

    HMS Astute Regular Member

    Joined:
    Jul 26, 2014
    Messages:
    802
    Likes Received:
    230
    Location:
    Italy
    Re: India defence budget analysis since 2000(Just some fun with number

    Meanwhile, China spends 4x more than India's defence budget. There's no way India will be able to catch up with Asia's superpower, unless it spends around 10% of GDP on defence.
     
  12. Srinivas_K

    Srinivas_K Senior Member Senior Member

    Joined:
    Jun 17, 2009
    Messages:
    4,676
    Likes Received:
    3,355
    Re: India defence budget analysis since 2000(Just some fun with number

    Right now is India spending for minimum deterrence, hope our economy picks up in this decade so that we can match the Chinese threat.
     
  13. HMS Astute

    HMS Astute Regular Member

    Joined:
    Jul 26, 2014
    Messages:
    802
    Likes Received:
    230
    Location:
    Italy
    Re: India defence budget analysis since 2000(Just some fun with number

    i don't think china considers india as a serious competitor in many aspects. the gap between these countries will be even larger in the coming years. the only country in the world that the sole superpower US considers as a potential rival is china, but not russia, india nor north korea.
     
  14. Srinivas_K

    Srinivas_K Senior Member Senior Member

    Joined:
    Jun 17, 2009
    Messages:
    4,676
    Likes Received:
    3,355
    Re: India defence budget analysis since 2000(Just some fun with number

    Yes at the moment Chinese see India as a potential competitor. But we have our hopes and wishes with the current Modi Govt. to succeed in implementing economic plans in this decade so that India will have considerable strength to counter China.

    India is also strengthening its military / economic relations with Japan which is offering us technology and expertise.

    Mean while Chinese economy is loosing its steam because of rising wages and cost of living, Their real estate bubble is deflating and is heading towards a crisis. Indian manufacturing sector is outpacing Chinese for the past 3 months and is expected to continue this trend in the future.

    The projection is that India will outpace Chinese GDP growth in 2 to 3 years when the economic policies of Modi Govt. will kick start.


    All India needs to do is strengthen relations with the west and Japan to counter Chinese threat until India becomes strong and can face China.

    Unlike China we are a democracy and we believe in Globalization on equal terms , playing our part in the new world , believe in freedom, tolerance and we are prepared to play our role along with the west to make this planet a better one.
     
    Last edited: Aug 8, 2014
    Peter likes this.
  15. HMS Astute

    HMS Astute Regular Member

    Joined:
    Jul 26, 2014
    Messages:
    802
    Likes Received:
    230
    Location:
    Italy
    Re: India defence budget analysis since 2000 (Just some fun with numbe

    in concur, and it seems like india is indeed in an uncomfortable position, considering the fact that indian government and also it's people don't like the west, nato, us, uk in general, but then there's a possible threat from the aggressor china which has been bullying it's vulnerable little neighbours in the region. there are very few countries in the world which are capable of defeating and humiliating the chinese in their doorstep. a bit hard to observe the situation as both china and india are brics members, but i reckon india defo has a stronger relationship with russia than any country in the world, but then again russia is regarded as a former, current, and future enemy of the west. not sure which role india would play if a war between the west and china/russia broke out. sigh...
     
  16. Srinivas_K

    Srinivas_K Senior Member Senior Member

    Joined:
    Jun 17, 2009
    Messages:
    4,676
    Likes Received:
    3,355
    Re: India defence budget analysis since 2000 (Just some fun with numbe

    India do not want S.Asia's order to be disturbed, any one who is acting against it, be it chinese or any one else is seen as an aggressor.

    India and Russia have their own interests as proven in 1971 war with Pakistan, Russia will be co operating with India in future. Since rise of China is also a threat to Russia far east.
     
  17. Compersion

    Compersion Senior Member Senior Member

    Joined:
    May 6, 2013
    Messages:
    1,848
    Likes Received:
    454
    Location:
    India
    Re: India defence budget analysis since 2000 (Just some fun with numbe

    if pakistan would be getting closer to russia it will be at expense of usa and signifying a Paki position and policy of being more and more anti-america especially with the past in mind. such a message will be more directed towards the americans and not india. further india is not in the same basket due to the past and can relate to both Russia and America and especially with different areas of concentration and spheres of influence (Eastern vs Western india for one example). also russia might not be absolutely "friendly" since there is paki role and verbal (triumphant from Paki viewpoint) abuse with respect to afganistan and also Paki role in upbringing PRC into America and UNSC in 1970s and disturbing Soviet parameters.
     
  18. HMS Astute

    HMS Astute Regular Member

    Joined:
    Jul 26, 2014
    Messages:
    802
    Likes Received:
    230
    Location:
    Italy
    Re: India defence budget analysis since 2000 (Just some fun with numbe

    do you think india would support russia if it went to a war against nato?
     
  19. Kranthi

    Kranthi Regular Member

    Joined:
    Aug 6, 2012
    Messages:
    128
    Likes Received:
    38
    Location:
    Hyderabad
    Re: India defence budget analysis since 2000 (Just some fun with numbe

    Possibility is that India will either be neutral or it will take the Russian side. Neutral in case if Russia is the aggressor.
     
  20. Eastman

    Eastman Regular Member

    Joined:
    Sep 25, 2013
    Messages:
    324
    Likes Received:
    168
    Location:
    Bye Bye DFI
    Re: India defence budget analysis since 2000 (Just some fun with numbe

    Before any further alliance takes place the world will be back to stone age :truestory:
     
  21. Eastman

    Eastman Regular Member

    Joined:
    Sep 25, 2013
    Messages:
    324
    Likes Received:
    168
    Location:
    Bye Bye DFI
    Re: India defence budget analysis since 2000 (Just some fun with numbe

    How about East Vs West war without Nuclear weapons :eyebrows:
     

Share This Page