The US secretary of defence, Robert Gates, arrives in the Indian capital, New Delhi, next week to promote a $10bn jet fighter contract, underlining the country's emergence as one of the world's biggest military markets.
To update its Soviet-era arsenal India says it will need to spend $45bn in the next five years, and it has been courted by western states that are barred by arms embargoes from selling to China, the other expanding Asian military power.
K Subramanyam, a defence analyst, said: "With the Americans you purchase not just weapons but a security relationship." However the rising defence budget, which dwarves spending on education and health, has met mounting criticism.
Praful Bidwai, a prominent columnist, said defence accounted for almost 19% of government spending. "We spend 1% on health and education is 5% -6%."
"[India is] a poor country and we are spending like crazy on guns. A government report last year found that 77% of Indians live on less than 20 rupees per day."
Via Guardian-Unlimited
22.2.08
The $45bn Indian Pie
Posted by netID UK at 4:24 PM
Labels: business india, defence, desi, desi business, india, us-india
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