India has become the world’s 4th largest spender on defence, following a 13.1% increase in its 2016-17 defence budget, according to United states research firm IHS Inc. India’s rise in the rankings from 6th position last year is a result of an increase in expenditure to $50.7 bn, combined with cuts to military spending by other countries, namely, Russia and Saudi Arabia, where low oil prices have put considerable strain on their finances.
According to IHS analysis, short-term pressures, caused by increases to military pay and the introduction of One Rank, One Pension (OROP), are the main reason for the higher rate of budget growth. As a result, spending on the acquisition of military equipment remained largely static in real terms and remains lower than its 2013-14 peak, despite an increase in the overall budget.
IHS provides information and analysis to support the decision-making process of businesses and governments in industries, such as aerospace, defense and security; automotive; chemical; energy; maritime and trade; and technology. In the past decade IHS has acquired the following businesses: Jane’s Information Group, Cambridge Energy Research Associates (CERA), Global Insight, and John S. Herold, Inc.
- The Indian defence budget is expected to reach $64.8 billion by 2020 with procurement expenditure expected to grow faster than overall spending, according to IHS.
- India’s aerospace and defence market is among the most attractive globally and the government is keen to leverage this advantage to promote investments in the sector.
- Cambridge Energy Research Associates (CERA)
- India spend Rs 2.58 lakh crore on defence in 2016-17.
- So lets do:
- Who is the DEfence Minister of India?
- India has become the world’s ______ largest spender on defence.
- India spend Rs ____ crore on defence in 2016-17.
Source – The Hindu