NEW DELHI, 14 November 2006 — India, the largest arms purchaser among emerging nations, said yesterday it will not prune its military spending because of the growing threat from terrorism and regional tensions.
India annually spends $14 billion, or 2.34 percent of its Gross Domestic Product (GDP), on its military. Since 2004 it has either spent or committed billions of dollars in modernization projects planned until 2010.
“It is a harsh reality that defense expenditure involves huge outlays on acquisitions,” Foreign Minister Pranab Mukherjee told visiting defense officials from 40 countries including Britain, China, Germany and the US.
“There is no denying the fact that the challenge of modern warfare with the likely nuclear, biological and chemical dimensions cannot be met with outdated technologies,” he said. “These assume greater significance because of unfathomable dangers arising from proliferation of nuclear technologies over the years and the capability acquired by international terrorist organizations.”
“And therefore there is no escape from modernization of the defense forces,” said Mukherjee, who until last month held the defense portfolio.
Finance Minister Palaniappan Chidambaram warned the Indian military that it must generate revenue to help India retain its eight percent economic growth.
“We now have to take hard decisions to restructure certain expenditures and we have to maximize available public resources by enlisting private resources wherever feasible,” Chidambaram told the conference. “Soft options for reducing expenditures or increasing revenues are getting exhausted,” he said.
“Also, the argument that the government must support loss-making or inefficient state undertakings because of their strategic importance is difficult to sustain in an increasingly globalized world with many more efficient alternatives,” Chidambaram said.India has in the past two years spent $7 billion on acquisitions including $1.43 billion on 26 British trainer jets, $1.2 billion on six French submarines and $1.5 billion on a Russian aircraft carrier.
Its immediate shopping list includes 126 fighter jets worth $6.5 billion, artillery for $1.5 billion as well as plans to construct an air defense ship worth $2.2 billion, according to available estimates.
India accuses Pakistan of not only being a nuclear proliferator but also of backing guerrillas fighting Indian rule in Kashmir which has claimed 44,000 lives since 1989.
India will also hold talks with Chinese President Hu Jintao who arrives Nov. 20.
Most Indian military development projects have been delayed by eight to 10 years due to lack of expertise or resources.
However, junior defense minister Pallam Raju, who also attended the three-day conference, backed Mukherjee by saying India could not afford to lower its guard.
“India has been a big spender in this part of the globe in 2004 and 2005 and it is unlikely the scale of expenditure will see any abatement in the foreseeable future given the unfolding security scenario and the related threat perception including terrorism in many forms and shapes,” Raju said.
