India spending more on Defence imports
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- Defence
- Monday, 30 April 2012 16:11
- Published on Monday, 30 April 2012 16:11
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Gujarat Global News Network, New Delhi
The capital expenditure on imports for modernisation of Armed Forces has gone up by 51% in the last four years, as per the figures given by Defence Minister A K Antony in the Parliament. Defence related imports have increased from Rs 10166.08 Cr in year 2007-08 to Rs 15443.01Cr in the year 2010-11.
Imports for the year 2007-08 were valued at Rs 10166.08 Cr, for the year 2008-09 at 10184.95 Cr, for the year 2009-10 at 13411.91 Cr and for the year 2010-11 at Rs 15443.01 Cr.
The Stockholm international Peace Research Institute (SIPRI) has also reported 38% increase in the value of arms imported by India during 2007-11 compared to the period 2002-06. As per the government, the acquisition of defence equipment both from foreign as well as indigenous sources is in accordance with the modernization programme of the Armed Forces as per Long Term Integrated Perspective Plan (LTIPP), Five Year Services Capital Acquisition Plan (SCAP) and Annual Acquisition Plans (AAPs).
Antony said that with a view to achieve greater self reliance in Defence production, the Defence Industry was opened up for Indian Private Sector participation in May 2011 with FDI permissible up to 26%, subject to licensing. Government has announced Defence Production Policy in January, 2011. Â
The ‘Make’ Procedure was promulgated in 2006 to encourage indigenous development.  Besides, the government has included a new categorisation ‘BUY & MAKE (Indian)’ in the Defence Procurement Procedure in November, 2009 to encourage indigenous production.  There is also provision for 30% offset obligation in all Capital Acquisitions categorised as Buy (Global) or Buy & Make with ToT where the estimated cost of the acquisition proposal is Rs.300 crore or more.
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