Slower Growth for India’s Defence BudgetFeb 28, 2005 08:08 UTC by Defense Industry Daily staff
India’s military budget will increase by 7.8% to 830 billion rupees ($19 billion), a figure far below its original figures and one that is causing some analysts to question whether India’s list of military modernization programs can be sustained. Recent high profile acquisitions have included the Phalcon radar system from Israel for $1.1 billion, the Admiral Gorshkov aircraft carrier from Russia for $1.5 billion, and 66 Hawk jet trainer planes from Britain for $1.45 billion. The country is currently looking for 126 new jet fighters to replace an accident-prone fleet of Russian-built MiG-21s, six new submarines from France, an anti-missile system from the United States, and rocket launchers from Russia. Analysts point out that India’s Congress-led government came to power last May on a ticket that emphasized services for the poor, and received support from four communist parties. Many analysts see the coming budget as a sign of a shift in priorities. Defense News: Indian Analysts Disappointed With 7.8 Percent Defense Hike.