Since Prime Minister,.Narendra Modi,is yet
to set a firm stage for his ambitious project
"Make in India"to take off India continues to bank,that too heavily'on imports in the defence sector.In fact India has again emerged as the world's largest buyer of weapons and military equipment, accounting for some 15 per cent of all international imports, while Russia, despite losing monopoly over the Indian defence market, continues to hold a dominant position as the largest supplier for New Delhi.Saudi Arabia, China, the United Arab Emirates (UAE) and Pakistan, are the next four biggest global importers.These trends have emerged from an assessment report which was done for a five-year period (2010-2014).According to this report, India's share in global imports has increased by 140 per cent over the previous five-year bloc, 2005-2009, indicating that New Delhi's attempts to be self-reliant were not enough as more and more sophisticated planes, warships and radars are procured from outside. India's imports were three times larger than those of either of its regional rivals China and Pakistan. This contrasts with 2005-2009 when India's imports were 23 per cent below China's and just over double those of Pakistan. In the period 2010-14, which is the basis of the latest report, Russia supplied 70 per cent of India's arms imports, the USA 12 per cent and Israel 7 per cent.And if the assessment report is any guide India continues to pump in several thousand crores of rupees per year on purchase of military equipment from various countries. As a ratio of the projected GDP for financial year 2015-16, India's defence expenditure is pegged at 1.74 per cent vis-a-vis 1.76 per cent in 2014-15. Of the total allocation for defense for 2015, the army will get Rs 1,04,158.95 crore, the navy Rs 15,525.64 crore, the air force Rs 23,000.09 crore, the ordnance factories Rs 2,884.23 crore, the Defence Research and Development Organisations Rs 6,570.09 crore. The remaining amount of Rs 94,588 crore has been allotted on the capital account for the acquisition of modern weapon systems, including initial payments for 126 multi-mission, medium-range combat aircraft, 197 light helicopters and 145 Ultra-light Howitzers, among others. It is well known that India plans to spend approximately US$ 100 billion over 10 years on defence modernisation.The 10.95 per cent increase of Rs 24,357 crore from Rs 2,22,370 (Revised Estimates for financial year 2014-15) to Rs 2,46,727 (US$ 39.8 billion, Budgetary Estimates for financial year 2015-16) is inadequate to allow for inflation, which is ruling at about 6.0 to 7.5 per cent. The Rupee's steady slide against the US dollar to Rs 62 to a dollar has eroded its purchasing power considerably. Annual inflation in the international prices of weapons, ammunition and defense equipment is generally between 12 to 15 per cent.Part of this amount could have been utilized on improving the sectors of industry and agriculture.Even the health sector could have experienced modernization had not India been forced to go in for heavy imports of sophisticated weapons.Yes,imports can be reduced in case India is in a position to implement Modi's project "Make in India" even in the defence sector also. Though the FDI ratio has been raised,even in the defence sector, to 49 per cent still those top entrepreneurs, who have earned a name in manufacturing sophisticated weapons, besides fighter planes,long range guns, missiles and other weapons, are yet to start investing in India despite their promise of doing so.In reality India would have no need for banking on heavy imports of military equipment had not the nation been surrounded by unfriendly neighbours,neighbours that have always displayed extra-territorial ambition.Well India has defeated Pakistan in the four wars,including the Kargil conflict of 1999, since the partition of 1947 still India has to be extra careful about the designs of Pakistan which has forged a military agreement with China.China and Pakistan too have to bank on imports but it is on a lesser scale because Pakistan receives part of the military equipment as aid from China.It is hoped that China and Pakistan too learn from the past that extra-territorial ambitions affect their development plan resulting in poor growth rate thereby forcing poverty and disease to have adverse impact on the social scene. Once China and Pakistan reciprocate India's bid for building cordial ties all the three nations will be able to reduce drastically their import of military equipment.Once peace dawns between Beijing and New Delhi and between Islamabad and New Delhi it encourage all the three nations to reduce their annual budgetary allocations on the defence sector. |
