(ANN)
Updated: 2007-12-24 10:20

Imports of military hardware and software are expected to touch US$30 billion by 2012 as India's armed forces ink defence deals for multi-role fighter jets, 1.55mm howitzers, and a variety of helicopters and long range maritime spy aircraft.

Indian Prime Minister Manmohan Singh (2nd L), Home Minister Shivraj Patil (L), Finance Minister Palaniappan Chidambaram (R) and Defence Minister A. K. Antony pose for a picture during a meeting with the chief ministers on internal security in New Delhi December 20, 2007. [Agencies]

A study by the Associated Chambers of Commerce and Industry of India (Assocham) has come up with this projection.

In the past three years, India spent as much as $10.5 billion in military hardware and software, making it the largest arms importer in the developing world, an Assocham paper on ‘Avenues for Private Sector Participation in Defence’ emphasised.

The study highlighted that the Defence sector needed to re-look at procurement of its goods and services from existing budget allocation in a more efficient manner. Referring to the Defence budget, the Assocham president, Venugopal N Dhoot, said the Indian military budget, which was about $20 billion last fiscal year, was expected to grow seven per cent annually over the next five years.

The country’s military spending amounts to roughly two per cent of the GDP, without accounting for expenditure on defence pensions, paramilitary forces and defence ministry itself, as part of budgeted defence expenditure.

The paper seeks larger private sector participation in defence related imports, reminding the government that despite defence ministry’s targets of achieving 70 per cent self reliance in defence production 10 years ago, it had fallen short of the target by 40 per cent.