India has approved new proposals worth nearly $3.5bn in an effort to modernise the nationтАЩs military hardware and boost its domestic defence industry.
The government earlier this month announced a 12% rise in military spending in the annual budget as part of efforts to overhaul its armed forces, with defence procurement proposals worth $3.5bn announced by the Defence Acquisition Council.
New markets
India is one of the worldтАЩs largest arms importers, however it has traditionally relied on Russia, the United States and Europe for equipment and technology due to weaknesses with its own industry.
Slow procurement and the collapse of a number of defence deals recently has left the military short of key equipment. This new deal is an attempt to bolster the market, particularly to foreign investment.
Among the major proposals to receive approval was an INR90-billion tender to provide five fleet support ships for its burgeoning yet disaster-prone navy that would be open to all public and private sector shipyards, PTI said citing defence ministry officials.
In his first budget, Defence Minister Arun Jaitley increased defence spending for the current financial year to $38.3bn. He also said he would further open up the military industry to foreign investment, lifting the cap from 26% to 49%, while Indian companies retain overall control.
Emerging defence opportunities
As new markets begin to open up for defence suppliers across the world, it is important to understand where the opportunities lie not just at the moment, but in the coming years.
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