17% hike in India's defence spending

[utubekhiladi]

New Delhi: To give a further push to its rapid military modernization, India Friday hiked its military spending by over 17 percent to Rs.1,93,407 crore (over USD 42 billion/Rs.1.93 trillion).In real terms, this increase amounts to Rs.28,992 crore (USD 6.5 billion) in the total outlay for defence for 2012-13 compared to Rs.1,64,415 crore (USD 36 billion) for the previous year (2011-12).

Finance Minister Pranab Mukherjee, presenting the general budget for the next fiscal in the Lok Sabha, said this allocation was based on the present needs projected by the defence ministry and that further needs for national security would be met.

He also announced a raise in the capital expenditure of the armed forces to Rs.79,579 crore (USD 17.5 billion), a 15.7 percent hike from last year's capital allocation of Rs.69,199 crore (USD 15 billion).

The capital expenditure will go towards new procurement of weapons and systems, and towards committed liability in the form of payments for contracts already signed in the previous years.

India is on the verge of signing a whopping USD 20 billion contract for 126 Rafale medium multirole combat aircraft, apart from a USD 600 million deal for 75 Pilatus PC-7 basic trainer for its air force.

It has already signed contracts for 10 C-17s transport planes and upgrade of 51 Mirage-2000 combat jets in 2011.

It also has 49 warships on order with several shipyards, of which 40 are with Indian shipyards.

Several artillery purchases for its army are also due. In particular, the proposal to buy 145 ultralight howitzers from the US under a government-to-government sale is also progressing.


India hikes defence spending 17% - Yahoo! News

17% hike in India's defence spending

 

[sayareakd]

what can be purchased with capital expenditure of Rs. 79,579 crore.

400 INSAS cost 1 crore.

 

[Sunder singh]

we have no choice bcoz of huge def acquatition program.

 

[trackwhack]

what can be purchased with capital expenditure of Rs. 79,579 crore.

400 INSAS cost 1 crore.

Which mean 1000 crore or 1.2% of the capital outlay will procure 400,000 new rifles. Which is not too bad. Its not adequate, but if the money is put to good use we can get by.

 

[sayareakd]

we have to get ATV, new tanks, fighters, AC, night vision, thermal visions, radars, missiles and whole hosts of systems. (trucks and jeep even BJP and helmets are part of capital equipment).

 

[Blackwater]

we have to get ATV, new tanks, fighters, AC, night vision, thermal visions, radars, missiles and whole hosts of systems. (trucks and jeep even BJP and helmets are part of capital equipment).

i have heard we have short listed polaris

 

[utubekhiladi]

what can be purchased with capital expenditure of Rs. 79,579 crore.

400 INSAS cost 1 crore.

home made rifles should not cost more than 30-40,000 RS.

if it is costing more than that, then some where something is wrong

 

[JAYRAM]

India hikes spending on defense by US$40 billion: The China Post, Taiwan

Updated Saturday, March 17, 2012 0:09 am TWN, AFP

NEW DELHI -- India on Friday boosted military spending by 17 percent to US$40 billion for the coming year as it seeks to counter China's rapid military build-up and its traditional rival Pakistan.

The government, engaged in a massive programme to upgrade the country's aging military hardware, increased defence spending to 1.93 trillion rupees (US$40 billion) for the financial year to March 31, 2013.

"This allocation is based on present needs and any further requirement will be met," Finance Minister Pranab Mukherjee told lawmakers in announcing the 2012-13 budget in parliament.

The rise follows a 12 percent increase in defence spending in the previous year's budget.

China earlier this month announced an 11.2 percent hike in military spending for 2012 to $106.41 billion, in a move analysts said would fuel concerns about Beijing's military build-up and increase regional tensions.

India hikes spending on defense by US$40 billion - The China Post

 

[JAYRAM]

Defence budget increased to Rs 1.93 lakh crore

BANGALORE: Finance minister Pranab Mukherjee has announced more than 17% hike in India's defence expenditure for the financial year 2012-13, as the country looks to off-set growing Chinese dominance in Asia.

Mukherjee allocated Rs 1.93 lakh crore ($41 billion) as defence spending for the current fiscal, barely weeks after the country's northern neighbour announced a whopping 11.2% increase in its military budget to $106.4 billion.


Budget at ET: Budget 2012 | Union Budget | Live Union Budget Blog | Railway Budget 2012 | Budget News | Economic Survey 2012
The finance minister also said that capital expenditure for the same period has been raised Rs 79,579 crore ($17.5 billion), from Rs 69.199 crore a year ago.

The increase in allocation, up from Rs 1.64 lakh crore ($36 billion) last financial year, also comes at a time when the India's armed forces are in the process of modernising itself as well as acquiring a slew of military equipment, including combat aircrafts, submarines and artillery.

China's military budget is currently the second highest in the world, just below that of the United States, and has steadily increased every year over the last decade. It has been a source of concern for India, which has had a rather fractious military relationship with China, culminating in a full-scale conflict in 1962.

Budget 2012-13: Defence budget increased to Rs 1.93 lakh crore - The Economic Times

 

[JAYRAM]

India hikes defence spending by 13 percent

Friday, 16 March 2012 18:03
IANS | New Delhi
Hits: 500

India Friday raised its military spending to Rs 1,93,407 crore [$38.6 billion/Rs.1.93 trillion], a 13 percent increase, to further push the fast-paced modernisation of its armed forces.

The budget hike, in real terms, amounts to Rs 22,471 crore [$4.5 billion] over the revised estimates of Rs 1,70,937 crore for the fiscal ending March 31. Discounting this increase of Rs 6,522 crore [over $1 billion], the hike comes to 17.6 percent over the Rs 1,64,415 crore [$32.8 billion] originally allocated.

"As always, this allocation is based on the present needs. Any further needs for security of the nation will be met," Finance Minister Pranab Mukherjee said while presenting the budget in the Lok Sabha.

Mukherjee said Rs 79,579 crore [$15.9 billion] had been set aside for capital expenditure - purchasing military hardware. This is a 15.7 percent hike over last year's allocation of Rs 69,199 crore [$13.8 billion].

The over 13 percent raise is marginally higher than the 11 percent hike in the budget for 2011-12.

"In the present situation, this is the best budget," Defence Minister A.K. Antony told reporters here later.

China had 10 days ago hiked its defence budget by 11.2 per cent to $106.4 billion, pushing its military spending into triple digit figures for the first time.

In June last year, Pakistan had projected a defence outlay of $5.75 billion for 2011-12, a raise of 12 percent.

The US is the world's largest military spender at close to $750 billion.

The $15.9 billion allocated for capital expenditure will go towards the procurement of new weapons and systems and towards meeting committed liabilities in the form of payments for contracts already signed in previous years.

India is on the verge of signing a whopping $20 billion contract for 126 Rafale medium multi-role combat aircraft, apart from a $400 million deal for 75 Pilatus PC-7 basic trainer for its air force.

It has already signed contracts for 10 C-17 transport planes for $4.1 billion and upgrading 49 Mirage-2000 combat jets for $2.4 billion, both in 2011. Only recently, it approved purchase of 490 MICA missiles from France for the upgraded Mirage planes at a cost of $1.23 billion.

It also has 49 warships on order with several shipyards, of which 40 are with Indian shipyards. Three years ago, it had bought eight P-8I maritime reconnaissance planes from the US for $2.1 billion and this order is likely to go up to 12 planes.

Several artillery purchases for its army, at an estimated cost of over Rs 20,000 crore [$4 billion], are also due. In particular, the proposal to buy 145 ultralight howitzers from the US for $400 million under a government-to-government sale is progressing.

Of the capital outlay, Rs 32,057 crore ($6.5 billion) will go towards aircraft and aeroengine purchases for the three services, of which Rs 23,701 crore ($4.5 billion) will go to the air force alone. The navy will get Rs 13,617 crore ($2.7 billion). Another Rs 7,242 crore ($1.5 billion) will go for infrastructure development.

India will spend Rs 16,325 crore ($3.2 billion) on other military equipment, apart from Rs 2269 crore ($450 million) on heavy and medium vehicles. It will also utilise Rs 4,640 core ($900 million) of its defence capital expenditure on research and development.

India hikes defence spending by 13 percent

 

[JAYRAM]

India raises fiscal defense budget: Xinhua

Updated: 2012-03-16 15:21
(Xinhua)

NEW DELHI - India will raise defense budget for 2012-13 fiscal year to 1.93 trillion rupees ($42 billion), said Indian Finance Minister Pranab Mukherjee Friday when presenting his federal budget for the fiscal year to the Parliament.

The raise is aimed at modernizing Indian army, navy and air force, according to the minister.

The Indian government also hiked capital expenditure on the defense forces to 795.79 billion rupees ($17.5 billion) .

India raises fiscal defense budget|Asia-Pacific|chinadaily.com.cn

 

[JAYRAM]

India raises defense budget by 13% in 2012-13 fiscal year:Xinhua

English.news.cn 2012-03-16 21:57:57

NEW DELHI, March 16 (Xinhua) -- India on Friday raised its military spending by 13 percent to 1.93 trillion rupees (38.6 billion U.S. dollars) in the 2012-13 fiscal year to modernize its armed forces.

The budget hike amounted to 224.71 billion rupees (4.5 billion U.S. dollars) over previous defense budget of 1.71 trillion rupees ending March 31 this year, according to the union budget presented by Indian Finance Minister Pranab Mukherjee to the Indian Parliament.

"As always, this allocation is based on the present needs. Any further needs for security of the nation will be met," said Mukherjee.

Meanwhile, he said 795.79 billion rupees (15.9 billion U.S. dollars) had been set aside for capital expenditure aimed at purchasing military hardware, a 15.7 percent hike over the previous fiscal year which allocated 691.99 billion rupees (13.8 billion U.S. dollars).

The over 13 percent raise is also higher than the 11 percent hike in the budget for 2011-12.

"In the present situation, this is the best budget," Defense Minister A.K. Antony was quoted as saying by local media.

The 15.9 billion U.S. dollars of capital expenditure will go towards the procurement of new weapons and systems and towards meeting committed liabilities in the form of payments for contracts already signed in the previous years, said Indo-Asian News Service.

India is due to sign this year a 20 billion U.S. dollars contract for 126 Rafale medium multi-role combat aircraft with France's Dassault aviation group in the next 10 years. Enditem

India raises defense budget by 13% in 2012-13 fiscal year - Xinhua | English.news.cn

 

[JAYRAM]

India raises defense budget by 13% in 2012-13 fiscal year: Shanghai Daily

India raises defense budget by 13% in 2012-13 fiscal year -- Shanghai Daily | 上海日报 -- English Window to China New

 

[JAYRAM]

Defence budget shoots up 17%

DEFENCE: Outlays indicate the nod for procurement of aircraft may be pushed to the next financial year
Business Standard / Mar 17, 2012, 02:50 IST

Defence budget shoots up 17%

 

[sayareakd]

home made rifles should not cost more than 30-40,000 RS.

if it is costing more than that, then some where something is wrong

Rs.25,000 per rifle, which means 4 will cost 1 lac and 400 INSAS rifle will cost 1 crore.

If i add your figure it will cost more.

 

[Tolaha]

India hikes spending on defense by US$40 billion: The China Post, Taiwan

Hike by $40 billion!

Someone at The China Post didn't bother proof-reading this article.

 

[agentperry]

hmmm...one more thing to see is that how they gonna spend it. every year they allocate funds but the problem of returning it without spending is seen. delaying procurement makes this hiked budget useless

 

[sayareakd]

Shot at 2012-03-17

Shot at 2012-03-17

 

[sesha_maruthi27]

There is no use in increasing the defence budget when we do not make use of the money for buying the weapons and instead just keep the money in the hands and banning the companies who provide some of the equipment's in the present world market.

 

[bengalraider]

What is required is not increasing the regular Defense budget but increasing the outlay on purchases within a fixed time bound plan say a increase of 20bil$/annum for 5 yrs to mordenise infrastructure and equipment only, we can afford it our defence outlay at 1.9% of GDP if far below the global average of 3%.