‘India to spend $80 bn on defence acquisitions by 2015′July 20th, 2010 - 5:59 pm ICT by IANS
New Delhi, July 20 (IANS) India’s defence spending is expected to touch about $80 billion over the next five years, creating opportunities for global aerospace and defence (A&D) companies, says consulting firm Deloitte.
“Defence spending in India and Middle East is expected to rise dramatically. India is likely to spend nearly $80 billion over the next five years (2010-15) on new capital acquisitions,” Deloitte said in a report on Indian defence spending.
India’s defence procurement for fiscal 2010-11 is budgeted at $32 billion (including $13 billion for acquisitions for new weapon systems, equipment and services).
“The sheer volume of planned expenditure is expected to create new opportunities for global aerospace and defence (A&D) companies, as total spending will grow in absolute terms,” said Kumar Kandaswami, Leader, Manufacturing Industry, for Deloitte in India.
“Further, having a burgeoning spending and significant offset requirements, India is also looking for necessary technologies from these companies,” added Kandaswami.
According to Deloitte, the US along with Britain, traditionally big spenders on defence-related equipment and technologies, will, however, cut expenditure.
The US Department of Defense could cut its research and development budget by five percent while Britain is expected to effect a steeper decline, said the report.
“Decreasing defence spend by developed countries will require smarter use of the remaining funds in order to develop and deploy the technologies needed to counter more sophisticated adversaries,” added General (retd) Charles Wald director, A&D sector, Deloitte LLP in the US.
- Indian companies will benefit from defence offsets policy (Comment) - Jan 23, 2011
- Asian defence market growth offset by slump in West: Deloitte - Mar 07, 2012
- China hikes defence budget, seeks friendly ties with India (Second Lead) - Mar 04, 2011
- Aerospace, defence business sluggish in 2011: Study - Jul 11, 2012
- Dependence on defence imports risky for India: Experts - Mar 17, 2012
- 'Revised defence offsets policy will encourage Indian SME sector' - May 08, 2012
- Indians unwilling to pay premium for electric cars - Aug 18, 2011
- Saab India Technology Centre opens in Hyderabad - Oct 21, 2011
- India further eases defence offsets norms - Apr 03, 2012
- Govt. to encourage joint ventures in Defence - Feb 09, 2011
- French firm Altran bets on india for growth - Jul 12, 2012
- Arms suppliers cashing on offset clause face challenges - Mar 17, 2012
- India hikes defence spending by 13 percent (Second Lead) - Mar 16, 2012
- Pakistan hikes defence budget by 10 percent - Jun 02, 2012
- Antony warns defence firms against corruption - Jul 12, 2011
Tags: absolute terms, adversaries, big spenders, capital acquisitions, defence procurement, defence spending, deloitte, developed countries, development budget, global aerospace, indian defence, manufacturing industry, necessary technologies, new opportunities, new weapon, next five years, related equipment, sheer volume, us department of defense, weapon systems