Raisina
Reports

Home 9 Defence 9 India’s military spending for the year 2021 is ranked as third highest in the world

India’s military spending for the year 2021 is ranked as third highest in the world

by | Jul 29, 2022 | Defence

FDI policy has been liberalised with enhanced FDI in Defence Sector up to 74% through the Automatic Route for companies seeking new defence industrial license and up to 100%
"After 33 years, India's indigenous light heavyweight aircraft (LCA) Tejas inducted into 45 Squadron of Indian Air Force in Bangalore's HAL airport by Pushkar V is licensed under CC BY-NC-ND 2.0.

New Delhi: Indian Defence Ministry quoting Stockholm International Peace Research Institute (SIPRI)’s website said that India’s Military spending for the year 2021 is ranked as third highest US$ 76,598) in the world after the United States (US$ 800,672) and China (293,351).
Indian junior minister of Defence Ajay Bhatt said in a written reply in Parliament that the Ministry of Defence does not maintain expenditure data of other countries.
The press release further added that during 2017-21, the percentage of Foreign Procurement (both Revenue and Capital) made for the purchase of Stores/ Defence Equipment has been in the range of 33.97% – 41.60%.
To provide autonomy and enhance efficiency, and unleash new growth potential in Ordnance Factories, the Ordnance Factory Board has been corporatised and converted into 7 new Defence Public Sector Undertakings while safeguarding the interest of all stakeholders. The new Defence PSUs have become operational from 1st October 2021.
FDI policy has been liberalised with enhanced FDI in Defence Sector up to 74% through the Automatic Route for companies seeking new defence industrial license and up to 100% by Government Route wherever it is likely to result in access to modern technology or for other reasons to be recorded. Significant FDI inflows in the Defence and Aerospace sector have been witnessed in the last 7 years. From 2001 to 2014 in 14 years, FDI flow was reported worth Rs 1,382 crore. In the last 7 years (2014-15 till date), the FDI inflow has increased by almost 2.5 times, which in absolute terms is Rs 3,378 crore.
The government has established two Defence Industrial Corridors, one each in Uttar Pradesh and Tamil Nadu to attract investments in the D&A sector and establish a comprehensive defence manufacturing ecosystem in the country. Moreover, the respective State Governments have also published their Aerospace & Defence Policies to attract private players as well as foreign companies including Original Equipment Manufacturers (OEMs) in these two corridors.

Our Correspondent
+ posts