22.2.08

The $45bn Indian Pie

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

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