India is all set to spend Rs 2.71 lakh crores ($33 billion) on defence equipment in Financial Year 2023. 99 per cent of this equipment will be sourced from Indian industries.

India is all set to spend Rs 2.71 lakh crores ($33 billion) on defence equipment in Financial Year 2023. 99 per cent of this equipment will be sourced from Indian industries. Much to the US and Russia’s dismay, India’s defence imports are shrinking year-on-year and it's because of the emergence of the Indian defence industry. India chooses indigenous defence equipment over Imports: India will procure weapons for the Indian Armed Forces worth Rs 70,500 crores ($8.7bn) and they will all be made in India. 1) Indian Navy proposals constitute more than Rs 56,000 crore ($6.84bn) which largely includes the locally-made BrahMos missiles, Shakti Electronic Warfare (EW) systems and maritime utility helicopters 2) Long Range Stand-Off Weapon for the Indian Air Force gets the nod; To be integrated on SU-30 MKI aircraft155mm/52 Caliber ATAGS, along with High Mobility & Gun Towing Vehicles, to be procured for Indian Army 3) Indian Coast Guard to get Advance Light Helicopters MK-III from HAL India drops defence imports: India’s defence imports declined by 11 per cent between 2013-17 and 2018-22 and this decline was linked to a complex procurement process, efforts to diversify arms suppliers and attempts to replace imports with local designs. India’s domestic procurement climbed to 68 per cent in FY22. WATCH | Rise of the Indian Defence Industry | Exports cross ₹130 Billion, imports down 11% × World seeks arms from India India’s defence exports are set to touch Rs 17,000 crore ($2.1bn) in FY23. India bagged an export order worth $155 million for 155-mm artillery guns and another deal for supplying Teevra 40-mm guns to the Indonesian Navy. Armenia signed a $250 million contract for India’s Pinaka missiles. 1) India will soon finalise a Brahmos deal with Indonesia and a follow on deal with the Philippines over and above the $ 375 million Brahmos deal signed last year. 2) India is supplying air-to-air missile launchers and sub-systems to MBDA France for Rafale fighter jets 3) India also exports bulletproof jackets, ballistic helmets, snow boots, and night vision devices used by soldiers in Europe, West Asia, Africa and ASEAN nations. India supplies the world We are witnessing India’s emergence as a defence-manufacturing hub as it supplies equipment and ammunition to the world: 1) India is making aero-structures for American Defence giant Boeing's AH-64 Apache helicopters 2) Airbus Defence And Space recently signed a Rs 21,935 crore ($2.7bn) deal to build C-295 medium-lift transport aircraft at Vadodara. 3) Another American defence giant Lockheed Martin has tied up with India to make wing sets for the F-16 Block 70 fighter aircraft. 4) Indian Army recently handed over 159 indigenously developed vehicles & equipment for UN Peacekeeping mission at UNISFA, Abyei. India presently exports defence supplies to over 80 countries. India’s next target is achieving defence manufacturing worth Rs 1,75,000 crore ($21.4bn), including defence exports of Rs 35,000 crore ($4.3Bn) by 2024-25. We can safely say that this is the emergence of the Indian Defence Industry – and world powers are taking note. (Disclaimer: The views of the writer do not represent the views of WION or ZMCL. Nor does WION or ZMCL endorse the views of the writer.) WATCH WION LIVE HERE:

The rise of Indian defence industry: Exports cross $1.6 billion, imports down 11%

India is working hard to enhance its capabilities and capacities in the defence-manufacturing sector at a fast pace, Prime Minister Narendra Modi said on Monday as he urged the private sector to come forward for designing and manufacturing of defence equipment.

The prime minister also noted that there were hundreds of ordnance factories before independence with large-scale weapons export from the country in both world wars but this system was not strengthened thereafter.

Addressing a webinar on effective implementation of the Union Budget's provisions in the defence sector, the prime minister listed a series of measures taken by his government to boost self-reliance in the defence sector and rued the fact that the country is amongst the biggest defence importers in the world.

He said an India that has the capacity to reach Mars could have made modern weapons also, but it became an easy way to import weapons from abroad.

"But now, the country is working hard to change the situation and also to enhance its capacities and capabilities at a fast pace," the prime minister asserted.

"The condition is such that even for small arms, we have to look at other nations. India is amongst the biggest defence importers and this is not a matter of pride," Modi stressed.

On the defence budget, the prime minister said a part has been reserved for domestic procurement even in the capital budget of defence.

A total amount of Rs 4.78 lakh crore has been earmarked for the defence ministry in the 2021-22 budget, with a nearly-19-per cent increase in capital outlay.

Modi also urged the private sector to come forward and take up both designing and manufacturing of defence equipment.

He said it is not that the people of India do not have the talent or capability, and pointed out that the country did not make ventilators before the coronavirus pandemic but now manufactures thousands of those.

Modi also cited the example of the indigenously-developed Light Combat Aircraft (LCA), Tejas.

He said his government has relied on the capabilities of the country's engineers and scientists in developing Tejas and today, it is "flying gracefully in the skies".

A few weeks ago, an order worth Rs 48,000 crore was placed for Tejas, he noted.

Modi said with initiatives like de-licensing, de-regulation, export promotion, foreign investment liberalisation, the government has taken several measures to give the defence-manufacturing sector a boost.

He said with the establishment of the chief of defence staff post, bringing uniformity in the procurement process and induction of equipment has become easy.

The prime minister said India has made a list of 100 important items related to defence that can be manufactured indigenously with the help of local industries.

He said it is called a negative list in the official language, but it is a positive list in the language of self-reliance.

This is the positive list on which the country's manufacturing capacity is going to increase, Modi asserted.

This is the positive list that is going to reduce India's dependence on foreign countries for defence needs and it guarantees the sale of indigenous products in India, he observed.

Describing the medium, small and micro enterprises (MSMEs) as the backbone of the entire manufacturing sector, Modi said reforms that are taking place today are giving more freedom to the MSME sector and encouragement for expanding.

The prime minister said the defence corridors that are being built in the country will also help local entrepreneurs and local manufacturing.

"Self-sufficiency in our defence sector has to be seen as the empowerment of these two fronts -- jawan as well as youth," he said.&nbsp;

India is working hard to enhance its capabilities and capacities in the defence-manufacturing sector at a fast pace, Prime Minister Narendra Modi said on Monday as he urged the private sector to come forward for designing and manufacturing of defence equipment.

India is working hard to enhance its capabilities and capacities in the defence-manufacturing sector at a fast pace, Prime Minister Narendra Modi said on Monday as he urged the private sector to come forward for designing and manufacturing of defence equipment. The prime minister also noted that there were hundreds of ordnance factories before independence with large-scale weapons export from the country in both world wars but this system was not strengthened thereafter. Addressing a webinar on effective implementation of the Union Budget's provisions in the defence sector, the prime minister listed a series of measures taken by his government to boost self-reliance in the defence sector and rued the fact that the country is amongst the biggest defence importers in the world. He said an India that has the capacity to reach Mars could have made modern weapons also, but it became an easy way to import weapons from abroad. "But now, the country is working hard to change the situation and also to enhance its capacities and capabilities at a fast pace," the prime minister asserted. "The condition is such that even for small arms, we have to look at other nations. India is amongst the biggest defence importers and this is not a matter of pride," Modi stressed. On the defence budget, the prime minister said a part has been reserved for domestic procurement even in the capital budget of defence. A total amount of Rs 4.78 lakh crore has been earmarked for the defence ministry in the 2021-22 budget, with a nearly-19-per cent increase in capital outlay. Modi also urged the private sector to come forward and take up both designing and manufacturing of defence equipment. He said it is not that the people of India do not have the talent or capability, and pointed out that the country did not make ventilators before the coronavirus pandemic but now manufactures thousands of those. Modi also cited the example of the indigenously-developed Light Combat Aircraft (LCA), Tejas. He said his government has relied on the capabilities of the country's engineers and scientists in developing Tejas and today, it is "flying gracefully in the skies". A few weeks ago, an order worth Rs 48,000 crore was placed for Tejas, he noted. Modi said with initiatives like de-licensing, de-regulation, export promotion, foreign investment liberalisation, the government has taken several measures to give the defence-manufacturing sector a boost. He said with the establishment of the chief of defence staff post, bringing uniformity in the procurement process and induction of equipment has become easy. The prime minister said India has made a list of 100 important items related to defence that can be manufactured indigenously with the help of local industries. He said it is called a negative list in the official language, but it is a positive list in the language of self-reliance. This is the positive list on which the country's manufacturing capacity is going to increase, Modi asserted. This is the positive list that is going to reduce India's dependence on foreign countries for defence needs and it guarantees the sale of indigenous products in India, he observed. Describing the medium, small and micro enterprises (MSMEs) as the backbone of the entire manufacturing sector, Modi said reforms that are taking place today are giving more freedom to the MSME sector and encouragement for expanding. The prime minister said the defence corridors that are being built in the country will also help local entrepreneurs and local manufacturing. "Self-sufficiency in our defence sector has to be seen as the empowerment of these two fronts -- jawan as well as youth," he said.

India committed to enhancing capabilities in defence manufacturing: PM Modi

The defence ministry on Monday approved the procurement of arms and military equipment worth Rs 2,290 crore including around 72,000 Sig Sauer assault rifles from the United States, officials said.

The procurement proposals were approved at a meeting of the Defence Acquisition Council (DAC), the defence ministry's highest decision-making body on procurement.

Besides clearing the proposal to buy the rifles, the other notable acquisitions approved by the DAC include procurement of smart anti- airfield weapon (SAAW) systems for the Navy and the Indian Air Force at an approximate cost of Rs 970, the officials said.

"The DAC headed by Defence Minister Rajnath Singh accorded approval for various arms and equipment worth Rs 2,290 crore," the defence ministry said.

The cost of procurement of the Sig Sauer assault rifles for the frontline troops of the Indian Army will be Rs 780 crore, officials said.

They said the DAC also accorded approval for procurement of Static HF Tans-receiver sets under the buy Indian category at a cost of Rs 540 crore. The HF radio sets will enable seamless communication for the field units of the Army and the Air Force.

The military equipment are being procured at a time Indian Army is locked in a bitter border row with China in eastern Ladakh.

The defence ministry on Monday approved the procurement of arms and military equipment worth Rs 2,290 crore including around 72,000 Sig Sauer assault rifles from the United States, officials said.

The defence ministry on Monday approved the procurement of arms and military equipment worth Rs 2,290 crore including around 72,000 Sig Sauer assault rifles from the United States, officials said. The procurement proposals were approved at a meeting of the Defence Acquisition Council (DAC), the defence ministry's highest decision-making body on procurement. Besides clearing the proposal to buy the rifles, the other notable acquisitions approved by the DAC include procurement of smart anti- airfield weapon (SAAW) systems for the Navy and the Indian Air Force at an approximate cost of Rs 970, the officials said. "The DAC headed by Defence Minister Rajnath Singh accorded approval for various arms and equipment worth Rs 2,290 crore," the defence ministry said. The cost of procurement of the Sig Sauer assault rifles for the frontline troops of the Indian Army will be Rs 780 crore, officials said. They said the DAC also accorded approval for procurement of Static HF Tans-receiver sets under the buy Indian category at a cost of Rs 540 crore. The HF radio sets will enable seamless communication for the field units of the Army and the Air Force. The military equipment are being procured at a time Indian Army is locked in a bitter border row with China in eastern Ladakh.

Defence Ministry approves acquisition of military hardware worth Rs 2,290 crore

By&nbsp;Lt Gen (Dr) NB Singh

The decision to withdraw tenders for supply of ammunition ranging from rifle -- fired grenades -- to artillery rounds is sure to dampen spirits in the industry. This is called a 'requirement drift' a frequently occurring phenomenon in a procurement centric organisation.

The recent announcement by the defence minister of a negative import list of 101 defence items was seen as a major step to reboot defence manufacturing. The promise of contracts worth Rs 4 lakh crores over five-six years appeared very inspiring.&nbsp;

For the industry, there was some assurance that if it could get its act together, it could seize the day. The government has been trying to bouy up defence manufacturing since the past six years, however not much happened on ground due to a host of reasons.&nbsp;

One foremost reason has been the lack of clarity on how to take it forward. Alongside the initiative there is a pressing need to change the fundamental approach to acquisitions, the military's method of establishing the need, formulation of qualitative requirements (QR), process of trials and budgetary decision making process.&nbsp;

An untrammelled long term view is essential, irrespective of emergent requirements that may crop up due to changes in the security landscape.

What then needs to be done to shore up defence manufacturing? Simply put it is ownership by the armed forces and a facilitative environment by those in the decision making chain. Every one has to have a genuine commitment towards indigenous programs and the acquisition community needs a new breed of people. Coming to framing of qualitative requirements (QRs), a principal responsibility of the user ; its time to base it on a mission engineering exercise. QRs have to be in sync with operational realities on ground. One singular reason for fanciful QRs is that these are attribute based rather than capability. One has to go through the recent RFI on the 8x8 Armoured Personnel Carrier to realise that such a system will have to be specially crafted for India with technologies sourced globally. Obviously, acquisition and system readiness costs will be exorbitant, besides long acquisition time frames.

More often than not acquisition of indigenously developed systems get stymied due to non conformance to certain not so critical attributes like weight , turning radius etc., rather than overall system maturity. MBT Arjun is agile, fires accurately and offers a significantly higher level of crew survivability than T 90 , but has not found support from the military. Like the A10 combat aircraft , Arjun could become a terrific tank to be in during war. Bharat Forge`s 155 mm gun is world class albeit with some deviations.&nbsp;

I remember, almost three decades back Dr Abdul Kalam telling me that if the Army accepted a mine system that was indigenous and fulfilling most QRs, our factories will manufacture it and people will get employment.

The next issue is trial evaluation and operational clearance. This has to be a time bound phenomenon, not an endless activity stretching onto several years. Present procedure ensures that induction and obsolescence occur concomitantly, with real costs, real schedules and real performance worse than what gets contracted.&nbsp;

World over a system of threshold and objective key performance parameters has been adopted to support national capability eg for an artillery gun maximum range could be specified as 30 km (threshold) to 40 km (objective) and CEP could be specified as 200 m ( threshold ) to 50 m objective; at say 25 km. Acceptance is given once threshold is achieved.

Coming to the last issue of contract negotiations. A closer look at the MOD list indicates that most items are being manufactured under Department of Defence production. How exactly does the MOD intend to apportion the quantities; if FSAPDS rounds, first item on the list or wheeled armoured fighting vehicle at serial no 70 gets made by both ordnance factory (OF) and private entity. Any assurance of guaranteed buy back to both?

With regard to ammunition, a special time bound initiative is required to develop indigenous capability, in view of the recurring nature of the requirement and difficulty in assessing the quality and expired shelf life of imported ammunition. This issue affects training on ground, adversely impacting gunnery skills.

CAPABILITY CENTRIC DEVELOPMENT

Acquisitions are to be taken up as a capability development effort and not a procurement process. It should result in creation of not only a war fighting capability but also an industrial capability. We should aspire to be self reliant in areas of military technology deemed essential for mission success. This means possessing baseline know how needed to design, develop, manufacture and maintain critical defence equipment and sensors. An indigenous defence industrial base is essential for life cycle mission readiness.

A three pronged hybrid strategy with an integrated view of capability development could provide the answer:

-- Capability Enhancement Programmes. Several platforms in the current inventory, can be brought to contemporary levels of equipment capability through incremental technology insertion and upgrade. The M1 Abrams is still going strong as a consequence of technology insertion Most tracked systems in the inventory require capability enhancements.

-- Development of Complex Systems. Projects for manufacture of new systems need to be taken forward through collaboration rather than competition. Collaborative prototyping aims at collaboration between public and private sector as has been done in the Dhanush program, wherein capabilities of Army maintainers, OFB and private sector were consolidated. Why not roll out strategic partnerships between OFB / DPSUs and private entities. In response to RFI for wheeled APC , 15 - 20 vendors have responded, much like the response to Army recruitment rallies. Those who do not make the cut finally, will lose further incentive to participate in future programs.

-- Technology Incubation. There is a need to work on creating a culture of innovation and creativity all around. The IDEX initiative should be expanded in scope and include development of next generation sub systems for future combat systems.

Consolidation of defence industrial capabilities has taken place in US, Europe and Russia as a response to shrinking markets. Making several Indian companies develop prototypes and offer for competitive evaluation is a colossal waste of national resources. Most advanced nations have trail blazed this route by putting the entire weight of the government, scientific community and industry in developing local products and capabilities. Israel is one shining example.

Prime Minister Narendra Modi has again echoed the mantra of AatmaNirbhar Bharat. He has aptly drawn an analogy between family and country to explain self reliance.&nbsp;

The Armed Forces need to spearhead this effort by assuming ownership and handholding the industry. It will give a strong impetus to 'Proudly Made In India' becoming a global brand of quality and reliability. It is time to move from panic procurement to planned acquisitions.

This calls for a change of accepted practices and entrenched ways of working and getting on with thinking beyond the algorithm. Time to change the Old Guard.

Lt Gen (Dr) N B Singh is a former DGEME, DGIS and Member - Armed Forces Tribunal.

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

By Lt Gen (Dr) NB Singh The decision to withdraw tenders for supply of ammunition ranging from rifle -- fired grenades -- to artillery rounds is sure to dampen spirits in the industry.

By Lt Gen (Dr) NB Singh The decision to withdraw tenders for supply of ammunition ranging from rifle -- fired grenades -- to artillery rounds is sure to dampen spirits in the industry. This is called a 'requirement drift' a frequently occurring phenomenon in a procurement centric organisation. The recent announcement by the defence minister of a negative import list of 101 defence items was seen as a major step to reboot defence manufacturing. The promise of contracts worth Rs 4 lakh crores over five-six years appeared very inspiring. For the industry, there was some assurance that if it could get its act together, it could seize the day. The government has been trying to bouy up defence manufacturing since the past six years, however not much happened on ground due to a host of reasons. One foremost reason has been the lack of clarity on how to take it forward. Alongside the initiative there is a pressing need to change the fundamental approach to acquisitions, the military's method of establishing the need, formulation of qualitative requirements (QR), process of trials and budgetary decision making process. An untrammelled long term view is essential, irrespective of emergent requirements that may crop up due to changes in the security landscape. What then needs to be done to shore up defence manufacturing? Simply put it is ownership by the armed forces and a facilitative environment by those in the decision making chain. Every one has to have a genuine commitment towards indigenous programs and the acquisition community needs a new breed of people. Coming to framing of qualitative requirements (QRs), a principal responsibility of the user ; its time to base it on a mission engineering exercise. QRs have to be in sync with operational realities on ground. One singular reason for fanciful QRs is that these are attribute based rather than capability. One has to go through the recent RFI on the 8x8 Armoured Personnel Carrier to realise that such a system will have to be specially crafted for India with technologies sourced globally. Obviously, acquisition and system readiness costs will be exorbitant, besides long acquisition time frames. More often than not acquisition of indigenously developed systems get stymied due to non conformance to certain not so critical attributes like weight , turning radius etc., rather than overall system maturity. MBT Arjun is agile, fires accurately and offers a significantly higher level of crew survivability than T 90 , but has not found support from the military. Like the A10 combat aircraft , Arjun could become a terrific tank to be in during war. Bharat Forge`s 155 mm gun is world class albeit with some deviations. I remember, almost three decades back Dr Abdul Kalam telling me that if the Army accepted a mine system that was indigenous and fulfilling most QRs, our factories will manufacture it and people will get employment. The next issue is trial evaluation and operational clearance. This has to be a time bound phenomenon, not an endless activity stretching onto several years. Present procedure ensures that induction and obsolescence occur concomitantly, with real costs, real schedules and real performance worse than what gets contracted. World over a system of threshold and objective key performance parameters has been adopted to support national capability eg for an artillery gun maximum range could be specified as 30 km (threshold) to 40 km (objective) and CEP could be specified as 200 m ( threshold ) to 50 m objective; at say 25 km. Acceptance is given once threshold is achieved. Coming to the last issue of contract negotiations. A closer look at the MOD list indicates that most items are being manufactured under Department of Defence production. How exactly does the MOD intend to apportion the quantities; if FSAPDS rounds, first item on the list or wheeled armoured fighting vehicle at serial no 70 gets made by both ordnance factory (OF) and private entity. Any assurance of guaranteed buy back to both? With regard to ammunition, a special time bound initiative is required to develop indigenous capability, in view of the recurring nature of the requirement and difficulty in assessing the quality and expired shelf life of imported ammunition. This issue affects training on ground, adversely impacting gunnery skills. CAPABILITY CENTRIC DEVELOPMENT Acquisitions are to be taken up as a capability development effort and not a procurement process. It should result in creation of not only a war fighting capability but also an industrial capability. We should aspire to be self reliant in areas of military technology deemed essential for mission success. This means possessing baseline know how needed to design, develop, manufacture and maintain critical defence equipment and sensors. An indigenous defence industrial base is essential for life cycle mission readiness. A three pronged hybrid strategy with an integrated view of capability development could provide the answer: -- Capability Enhancement Programmes. Several platforms in the current inventory, can be brought to contemporary levels of equipment capability through incremental technology insertion and upgrade. The M1 Abrams is still going strong as a consequence of technology insertion Most tracked systems in the inventory require capability enhancements. -- Development of Complex Systems. Projects for manufacture of new systems need to be taken forward through collaboration rather than competition. Collaborative prototyping aims at collaboration between public and private sector as has been done in the Dhanush program, wherein capabilities of Army maintainers, OFB and private sector were consolidated. Why not roll out strategic partnerships between OFB / DPSUs and private entities. In response to RFI for wheeled APC , 15 - 20 vendors have responded, much like the response to Army recruitment rallies. Those who do not make the cut finally, will lose further incentive to participate in future programs. -- Technology Incubation. There is a need to work on creating a culture of innovation and creativity all around. The IDEX initiative should be expanded in scope and include development of next generation sub systems for future combat systems. Consolidation of defence industrial capabilities has taken place in US, Europe and Russia as a response to shrinking markets. Making several Indian companies develop prototypes and offer for competitive evaluation is a colossal waste of national resources. Most advanced nations have trail blazed this route by putting the entire weight of the government, scientific community and industry in developing local products and capabilities. Israel is one shining example. Prime Minister Narendra Modi has again echoed the mantra of AatmaNirbhar Bharat. He has aptly drawn an analogy between family and country to explain self reliance. The Armed Forces need to spearhead this effort by assuming ownership and handholding the industry. It will give a strong impetus to 'Proudly Made In India' becoming a global brand of quality and reliability. It is time to move from panic procurement to planned acquisitions. This calls for a change of accepted practices and entrenched ways of working and getting on with thinking beyond the algorithm. Time to change the Old Guard. Lt Gen (Dr) N B Singh is a former DGEME, DGIS and Member - Armed Forces Tribunal. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

Defence procurement: Time to change the old guard

Finance Minister Nirmala Sitharaman enhanced the defence budget marginally but exempted defence imports from custom duties which will help the services save around Rs 25,000 crore annually.

"In a significant development, import of Defence Equipment not manufactured in India has been exempted from Basic Customs Duty. This will have an impact of augmenting the Defence Budget by approximately Rs 25,000 crore on account of savings in expenditure on Customs Duty over the next five years," the Defence Ministry said.

Rs 3,18,931.22 crore has been earmarked for Defence excluding Defence Pensions. For Defence Pension, an amount of Rs 1,12,079.57 crore has been provided in Budget Estimate 2019-20.

Taking into account both the budget and pensions, the allocation for defence comes to Rs 4,31,010.79 crore.

The allocation for Defence accounts for 15.47 per cent of the total Central Government expenditure for the Financial Year 2019-20.

"The allocation of Rs 3,18,931.22 crore represents a growth of 7.93 per cent over Budget Estimates (2,95,511.41 crore) and 6.87 per cent over Revised Estimates (Rs 2,98,418.72 crore), respectively for the Financial Year 2018-19," the ministry said.

Out of Rs 3,18,931.22 crore allocated for the Financial Year 2019-20, Rs 2,10,682.42 crore is for Revenue (expenditure meaning for paying salaries and maintaining g existing inventory while Rs 1,08,248.80 crore have been given for Capital expenditure for the Defence Services and the Organisations/Departments under Ministry of Defence.

The amount of Rs 1,08,248.80 crore allocated for Capital expenditure, includes modernisation related expenditure.

The Capital Allocation of Ministry of Defence under BE 2019-20 is 31.97 per cent of the total Central Government Capital Expenditure, which is Rs 3,38,569 crore.&nbsp;

Finance Minister Nirmala Sitharaman enhanced the defence budget marginally but exempted defence imports from custom duties which will help the services save around Rs 25,000 crore annually.

Finance Minister Nirmala Sitharaman enhanced the defence budget marginally but exempted defence imports from custom duties which will help the services save around Rs 25,000 crore annually. "In a significant development, import of Defence Equipment not manufactured in India has been exempted from Basic Customs Duty. This will have an impact of augmenting the Defence Budget by approximately Rs 25,000 crore on account of savings in expenditure on Customs Duty over the next five years," the Defence Ministry said. Rs 3,18,931.22 crore has been earmarked for Defence excluding Defence Pensions. For Defence Pension, an amount of Rs 1,12,079.57 crore has been provided in Budget Estimate 2019-20. Taking into account both the budget and pensions, the allocation for defence comes to Rs 4,31,010.79 crore. The allocation for Defence accounts for 15.47 per cent of the total Central Government expenditure for the Financial Year 2019-20. "The allocation of Rs 3,18,931.22 crore represents a growth of 7.93 per cent over Budget Estimates (2,95,511.41 crore) and 6.87 per cent over Revised Estimates (Rs 2,98,418.72 crore), respectively for the Financial Year 2018-19," the ministry said. Out of Rs 3,18,931.22 crore allocated for the Financial Year 2019-20, Rs 2,10,682.42 crore is for Revenue (expenditure meaning for paying salaries and maintaining g existing inventory while Rs 1,08,248.80 crore have been given for Capital expenditure for the Defence Services and the Organisations/Departments under Ministry of Defence. The amount of Rs 1,08,248.80 crore allocated for Capital expenditure, includes modernisation related expenditure. The Capital Allocation of Ministry of Defence under BE 2019-20 is 31.97 per cent of the total Central Government Capital Expenditure, which is Rs 3,38,569 crore.

Customs duty exemption to help defence forces save Rs 25,000 crore annually: Defence Ministry

China today announced a 8.1 per cent hike in its defence expenditure for this year to a whopping $175 billion, which is over three times higher than India&#39;s defence budget as it seeks to further advance an ambitious modernisation drive for its military.

The 8.1 per cent increase is higher than last year&#39;s announcement, when China upped military spending by 7 per cent over the previous year.

According to a budget report to be submitted to the National People&#39;s Congress (NPC) Monday, the 2018 defence budget will be 1.11 trillion yuan ($175 billion).

China last year increased the defence budget to $150.5 billion. China is the second largest spender on defence after the US. The Pentagon has requested a budget of $686 billion in 2019, up $80 billion from 2017.

The increase of China&#39;s defence budget by 8.1 per cent this year, is three times higher than India&#39;s latest defence budget of about $46 billion.

China&#39;s budget announcement comes as President Xi Jinping, the commander in chief of the country&#39;s armed forces, focuses on increasing both the sophistication and reach of the country&#39;s military.

Though China announced its military spending at about $150.5 billion last year, observers say it is considerably higher, considering it is now building two more aircraft carriers in addition to the one already in service as well as addition of new jet fighters, including stealth fighter J-20.

The Chinese Navy also expanded its global reach with flotilla ships sailing through the far-off oceans to expand China&#39;s influence.

The official media justified the increase to $175 billion, saying although slightly higher than the previous two years, the growth rate is the third time to dip into the single digit since 2013, following 7.6 per cent in 2016 and 7 per cent in 2017.

China&#39;s defence budget takes up a smaller share of its gross domestic product (GDP) and national fiscal expenditure compared with other major countries, Zhang Yesui, the spokesperson of the NPC told the media in Beijing on Monday.

Its military spending per capita is also lower than other major countries, Zhang said.

&quot;A large part of the growth of the defence budget is to make up for the low military spending in the past and is mainly used to upgrade equipment and improve the welfare of servicemen and women and the living and training conditions of grassroots troops,&quot; he said.

The increase of China's defence budget by 8.1% this year, is three times higher than India's latest defence budget of about $46 billion.

China today announced a 8.1 per cent hike in its defence expenditure for this year to a whopping $175 billion, which is over three times higher than India's defence budget as it seeks to further advance an ambitious modernisation drive for its military. The 8.1 per cent increase is higher than last year's announcement, when China upped military spending by 7 per cent over the previous year. According to a budget report to be submitted to the National People's Congress (NPC) Monday, the 2018 defence budget will be 1.11 trillion yuan ($175 billion). China last year increased the defence budget to $150.5 billion. China is the second largest spender on defence after the US. The Pentagon has requested a budget of $686 billion in 2019, up $80 billion from 2017. The increase of China's defence budget by 8.1 per cent this year, is three times higher than India's latest defence budget of about $46 billion. China's budget announcement comes as President Xi Jinping, the commander in chief of the country's armed forces, focuses on increasing both the sophistication and reach of the country's military. Though China announced its military spending at about $150.5 billion last year, observers say it is considerably higher, considering it is now building two more aircraft carriers in addition to the one already in service as well as addition of new jet fighters, including stealth fighter J-20. The Chinese Navy also expanded its global reach with flotilla ships sailing through the far-off oceans to expand China's influence. The official media justified the increase to $175 billion, saying although slightly higher than the previous two years, the growth rate is the third time to dip into the single digit since 2013, following 7.6 per cent in 2016 and 7 per cent in 2017. China's defence budget takes up a smaller share of its gross domestic product (GDP) and national fiscal expenditure compared with other major countries, Zhang Yesui, the spokesperson of the NPC told the media in Beijing on Monday. Its military spending per capita is also lower than other major countries, Zhang said. "A large part of the growth of the defence budget is to make up for the low military spending in the past and is mainly used to upgrade equipment and improve the welfare of servicemen and women and the living and training conditions of grassroots troops," he said.

China increases defence budget to $175 billion, three times higher than India's

In a major decision, the defence ministry today approved capital acquisition proposals worth Rs 15,935 crore which included purchase of 7.40 lakh assault rifles, 5,719 sniper rifles and light machine guns to bolster the strength of the armed forces.

The long-pending proposals were cleared at a meeting of the Defence Acquisition Council (DAC), the defence ministry&#39;s highest decision making body on procurement.

The approval to the proposals come amid increasing hostilities by Pakistan along the Line of Control in Jammu and Kashmir as well as China&#39;s aggressive posturing in several sectors along the nearly 4,000-km-long Sino-India border.

The defence ministry said the DAC chaired by Defence Minister Nirmala Sitharaman cleared capital acquisition proposals which were valued at Rs 15,935 crore.

It said the DAC accorded approval for procurement of 7.4 lakh assault rifles for the three services at an estimated cost of Rs 12,280 crore.

The rifles will be produced in in India under the &#39;Buy and Make (Indian)&#39; category through both state-run Ordnance Factory Board and private sector.

In a statement, the ministry said &quot;essential quantity&quot; of Light Machine Guns (LMGs) will be through the &quot;fast track&quot; route at an estimated cost of over Rs 1,819 crore, primarily to meet the operational requirement of the troops deployed on the borders.

&quot;A concurrent proposal is being processed for the balance quantity to be procured under the &#39;Buy and Make (Indian)&#39; categorisation,&quot; the ministry said.

In the last one month, the DAC has fast tracked procurement of rifles, carbines and LMGs to equip the soldiers on the border with modern and more effective equipment.

The DAC also approved procurement of 5,719 sniper rifles for the Indian Army and Indian Air Force at an estimated cost of Rs 982 crore, the ministry said.

The sniper rifles will be bought under the &#39;Buy Global&#39; category, the ammunition for these weapons will be initially procured and subsequently manufactured in India.

The ministry said to enhance the anti-submarine warfare capabilities of Indian Navy, the DAC also approved the procurement of Advanced Torpedo Decoy Systems (ATDS) for the Indian Navy at a cost of Rs 850 crore.

The &#39;Mareech&#39; system has been developed indigenously by Defence Research and Development Organisation and has successfully completed extensive trial evaluations.

&quot;The &#39;Mareech&#39; systems will be produced by Bharat Electronics Limited, Bengaluru at an estimated cost of Rs 850 crore,&quot; the ministry said.

 
&nbsp;

In a major decision, the defence ministry today approved capital acquisition proposals worth Rs 15,935 crore which included purchase of 7.40 lakh assault rifles, 5,719 sniper rifles and light machine guns to bolster the strength of the armed forces

In a major decision, the defence ministry today approved capital acquisition proposals worth Rs 15,935 crore which included purchase of 7.40 lakh assault rifles, 5,719 sniper rifles and light machine guns to bolster the strength of the armed forces. The long-pending proposals were cleared at a meeting of the Defence Acquisition Council (DAC), the defence ministry's highest decision making body on procurement. The approval to the proposals come amid increasing hostilities by Pakistan along the Line of Control in Jammu and Kashmir as well as China's aggressive posturing in several sectors along the nearly 4,000-km-long Sino-India border. The defence ministry said the DAC chaired by Defence Minister Nirmala Sitharaman cleared capital acquisition proposals which were valued at Rs 15,935 crore. It said the DAC accorded approval for procurement of 7.4 lakh assault rifles for the three services at an estimated cost of Rs 12,280 crore. The rifles will be produced in in India under the 'Buy and Make (Indian)' category through both state-run Ordnance Factory Board and private sector. In a statement, the ministry said "essential quantity" of Light Machine Guns (LMGs) will be through the "fast track" route at an estimated cost of over Rs 1,819 crore, primarily to meet the operational requirement of the troops deployed on the borders. "A concurrent proposal is being processed for the balance quantity to be procured under the 'Buy and Make (Indian)' categorisation," the ministry said. In the last one month, the DAC has fast tracked procurement of rifles, carbines and LMGs to equip the soldiers on the border with modern and more effective equipment. The DAC also approved procurement of 5,719 sniper rifles for the Indian Army and Indian Air Force at an estimated cost of Rs 982 crore, the ministry said. The sniper rifles will be bought under the 'Buy Global' category, the ammunition for these weapons will be initially procured and subsequently manufactured in India. The ministry said to enhance the anti-submarine warfare capabilities of Indian Navy, the DAC also approved the procurement of Advanced Torpedo Decoy Systems (ATDS) for the Indian Navy at a cost of Rs 850 crore. The 'Mareech' system has been developed indigenously by Defence Research and Development Organisation and has successfully completed extensive trial evaluations. "The 'Mareech' systems will be produced by Bharat Electronics Limited, Bengaluru at an estimated cost of Rs 850 crore," the ministry said.

Defence ministry clears mega purchase of weapons for armed forces

To keep the armed forces ready for battle at a short notice, India has inked emergency deals for ammunition and spares worth Rs 20,000 crore ($3 billion), reported The Times of India (TOI). The deals were reportedly signed over the last two to three months period.

The aim was to guarantee that the armed forces could undertake at least ten days of &quot;intense fighting&quot; without worrying about ammunition, spares and other reserves, defence ministry sources told TOI.&nbsp;

According to the TOI report, the new contracts will be primarily signed with Russia, Israel and France.&nbsp;

Since the attack on Jammu &amp; Kashmir&#39;s Uri air base, the government has stepped up its anti-terrorism operation, with surgical strikes in Pakistan-occupied Kashmir (PoK).

The Indian Air Force (IAF) has concluded 43 contracts worth over Rs 9,200 crore ($1.4 billion) for ammunition and spares for its fighter jets. Meanwhile, the Army has inked around 10 contracts worth over Rs 5,800 crore ($863 million) with Russian companies alone.

&quot;The emergency purchases will obviate the need for armed forces to present long shopping lists to the government after every major terror strike. They can now maintain operational readiness for different contingencies,&quot; the source added.

As per operational norms, the War Wastage Reserves (WWR) should be sufficient for 30 days of &quot;intense&quot;&nbsp;and 30 days of &quot;normal&quot; fighting,&nbsp;the&nbsp;report said.

Last week, the overall defence budget saw a marginal 6.2 per cent increase in the budget for the next fiscal at Rs 2.74&nbsp;lakh crore ($40.8 billion) from the Rs 2.58 lakh crore ($38.4 billion) allocated last year, with the capital outlay to cover the modernisation programmes getting a hike of 10.05 per cent.&nbsp;

(This article first appeared on DNA)

Defence ministry sources told Indian daily that the aim is to ensure that the forces can undertake 10 days of 'intense fighting'

To keep the armed forces ready for battle at a short notice, India has inked emergency deals for ammunition and spares worth Rs 20,000 crore ($3 billion), reported The Times of India (TOI). The deals were reportedly signed over the last two to three months period. The aim was to guarantee that the armed forces could undertake at least ten days of "intense fighting" without worrying about ammunition, spares and other reserves, defence ministry sources told TOI. According to the TOI report, the new contracts will be primarily signed with Russia, Israel and France. Since the attack on Jammu & Kashmir's Uri air base, the government has stepped up its anti-terrorism operation, with surgical strikes in Pakistan-occupied Kashmir (PoK). The Indian Air Force (IAF) has concluded 43 contracts worth over Rs 9,200 crore ($1.4 billion) for ammunition and spares for its fighter jets. Meanwhile, the Army has inked around 10 contracts worth over Rs 5,800 crore ($863 million) with Russian companies alone. "The emergency purchases will obviate the need for armed forces to present long shopping lists to the government after every major terror strike. They can now maintain operational readiness for different contingencies," the source added. As per operational norms, the War Wastage Reserves (WWR) should be sufficient for 30 days of "intense" and 30 days of "normal" fighting, the report said. Last week, the overall defence budget saw a marginal 6.2 per cent increase in the budget for the next fiscal at Rs 2.74 lakh crore ($40.8 billion) from the Rs 2.58 lakh crore ($38.4 billion) allocated last year, with the capital outlay to cover the modernisation programmes getting a hike of 10.05 per cent. (This article first appeared on DNA)

India signs urgent arms deal of about $3 billion: Report