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This post was edited by stealth at 2011-12-31 02:13|
India to spend 50+ trillion rupees in armed forces modernization
The Indian government has plans to make big investments in modernizing different sectors of the country’s armed forces.
“Now it is time to modernize, upgrade all the defense PSUs [public sector units] and ordinance factory boards,” says M.M. Pallam Raju, minister of state for defense.
Raju says the government is investing a “lot of money and effort” to promote these facilities, which the country has developed over a period of time with “great tenacity.” He says the amount of investment is going up and could be more than $945 billion [50 trillion rupees] as per security needs over next five years. The defense ministry is working toward parallel encouragement of the private sector to attain the goal, he says “Unfortunately, as far as the army is concerned, we have been suffering because of cancellation of tenders due to black-listing of companies,” Raju says. “There is a quest to modernize our artillery, so we hope that in the next couple of years we will make significant progress.”
The government is also taking the issue of self-reliance seriously in the context of manufacturing artillery.
Forecasts for the Indian defense market are numerous and varied, but most project massive growth, especially compared to western markets. According to one forecast for 2011-2016 by iCD Research, the compound annual growth rate (CAGR) for all Indian defense expenditures is expected to rise to 13.08%. And while the country is eager to build its domestic industry, India remains one the world’s largest importers of military hardware, relying on imports to fulfill 70% of its defense requirements, according to the November report.