India's defence spending to touch $80 bn by 2015
Last updated: 20 July, 2010
New Delhi, July 20, IANS: 16:22 IST
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.