Defence budget 2021-2022

sorcerer

Senior Member
Joined
Apr 13, 2013
Messages
22,391
Likes
74,555
Country flag
DAC approves proposals worth Rs 13,700 crore



Defence Acquisition Council (DAC), under the chairmanship of Raksha Mantri Shri Rajnath Singh, has approved capital acquisition proposals of various weapons/platforms/equipment/
systems required by the Indian Army, Indian Navy and Indian Air Force, in New Delhi on February 23, 2021. Three Acceptance of Necessities (AoNs) for an overall cost of Rs 13,700 crore were accorded. All these AoNs are in the highest priority category of Defence Acquisition viz 'Buy [Indian-IDDM (Indigenously Designed, Developed and Manufactured)].


All these acquisition proposals will be indigenously designed, developed and manufactured. These will include inter-alia platforms and systems designed and developed by Defence Research and Development Organisation (DRDO).


To meet the Atmanirbhar Bharat goals of the Government on time-bound defence procurement process and faster decision making and to systematically work towards reducing the time taken for capital acquisition, the DAC also approved that all capital acquisition contracts (delegated and non-delegated) other than D&D cases shall be concluded in two years. The Ministry, in consultation with the Services and all stakeholders, will come up with detailed plan of action for achieving the same.
 

Okabe Rintarou

Regular Member
Joined
Apr 23, 2018
Messages
635
Likes
2,333
Country flag
Defence Budget: Military gets 28% less budget than it projected

.

and not giving what mil asked for was the norm for the last 4-5 budgets...
The article is behind a paywall even though I don't visit this site (meaning I couldn't have used up my free article limit). Sounds like a trashy website with trashy articles clickbaiting with contrarian headlines but then demanding I pay upfront for their nonsense article.

Defence CAPEX grew by 18% to $18.5 Billion this year. That is in addition to the $2.8 Billion spent in emergency purchases since last year despite a global pandemic and recession. CAPEX for Air Force grew by 23% and for the Navy by an astounding 25%.

By the end of this decade, we will see this CAPEX grow to around $67 Billion annual figure (conservative estimate). Compare that to the US Military's CAPEX of $130 Billion and consider the fact that our Naval, Air and Space Forces are a fraction that of the US. That should go to show that Indian military will not lack in funds in the coming years if we put economic growth above short term military budget splurges and it becomes clear why looking at Defence Budget solely from the prism of the military's projected requirements is a poor strategy.

Add to that the fact that we'll be spending around $60 Billion of those $67 Billion annually on purchasing weapons from Indian industry. In addition, if we are exporting weapons worth even $5 Billion annually (GoI's target for 2025), the total money spent on Indian weapons annually will be $65 Billion. That money, $65,000,000,000 will pay salaries of Indian Industry employees, who will use that money to buy goods and services in India, thereby driving up consumption in India and adding another $25 Billion to the GDP. The Indian businesses who profit from the additional $25 Billion consumption by Indian Defence Industry employees will further buy goods and services further adding another $10 Billion to Indian GDP. So net effect of the rise of Indian Military Industrial Complex will be an addition of $100 Billion (60+5+25+10) to India's GDP and more bang for the buck for India's military procurement budget. And that is just by the end of this decade. From there, it will increase even further. If the proposed Rashtriya Suraksha Naivedyam Kosh gets set up, this amount could go up further.
 

Okabe Rintarou

Regular Member
Joined
Apr 23, 2018
Messages
635
Likes
2,333
Country flag
So net effect of the rise of Indian Military Industrial Complex will be an addition of $100 Billion (60+5+25+10) to India's GDP and more bang for the buck for India's military procurement budget.
Now consider this. Money spent on Indian weapons, instead of imports will have a $100 Billion positive impact on Indian GDP, then that would create a self-supporting lobby for Indian weapons in India. All the dalals lobbying for Imported weapons would not be able to stand up to this Indian MIC lobby. This is the critical mass, which if reached once, will ensure that no amount of Congress or Libearl Coalition rule will be able to hamper Indian Weapons programs. To ensure that we reach this critical mass, 2024 Elections are the only major hurdle. Other minor hurdles are already taken care off: Support of forces is secured by Officers like Gen Rawat and ACM Bhadauria; Quality of manufacture will be ensured by Private Corporations and meritocracy; Amount of money spent on Indigenous vs imported weapons will be ensured by Rajnath Singh ji's kadi ninda, import ban lists and CAPEX bifurcation under newly created Swadeshi and Videshi heads. All we need now is that this political party continues till 2029 at least.
 

sorcerer

Senior Member
Joined
Apr 13, 2013
Messages
22,391
Likes
74,555
Country flag
Indigenous Aircraft and Submarines


Posted On: 17 MAR 2021 2:45PM by PIB Delhi



Indian Navy has placed orders for following indigenous aircraft and submarines:-


(1) Aircraft by Hindustan Aeronautics Ltd (HAL)


(i) 12 Dorniers


(ii) 16 Advanced Light Helicopters (ALH MK III)


(iii) 8 Chetak helicopters


(2) Submarines: Six Scorpene class submarines are being built by Mazagon Dock and Shipbuilders Limited (MDL) under Project-75.


There are some delays in the projects. Reasons for delays are as follows:-


(1) Aircraft: The deliveries have been delayed due to the supply chain disruptions caused by COVID-19 pandemic.


(2) Submarines: The delays have been caused due to the various defects observed during the trials of the submarines, requirement of certain modifications and delays in the supply of items required for construction by the collaborator / ToT provider - Naval Group, France.


The outbreak of Covid-19 pandemic has further impacted the delivery schedule of the submarines.


In the interest of national security, the details cannot be divulged. However, the existing submarine fleet is being maintained combat worthy through life extension & modernization/upgradation.


This information was tabled in a written reply by Raksha Rajya Mantri Shri Shripad Naik to a question asked by Shri Ravindra Kushwaha and others in Lok Sabha today.
 

Global Defence

New threads

Articles

Top