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Israel-India Business Guide - Defence & HLS
India Vs China : Military Expenditure
Year
Defence
Expenditure
(US$ m)
Defence
Expenditure
(Per Capita
US$)
Defence
Expenditure
(% of GDP)
India China India China India China
2008 31,540 60,187 28 46 2.52 1.33
2009 38,278 70,381 33 53 3.11 1.41
2010 30,865 76,361 26 57 1.89 1.3
2013 37,860 106,000 NA NA 1.79 NA
India China Comparison – Military Spending
Military Spending
India China
Armed Forces
1,325,000 2,285,000
Estimated Reservists
1,155,000 5,10,000
Paramilitary
1,301,000 6,60,000
Battle Tanks
568
2,800
Attack Helicopters
20
16
Submarines
15
60
Fourth Generation Tactical Aircraft 280
747
Fighter/Ground Attack Aircraft
784
1,669
Inter-continental Ballistic Missile
Launchers
0
66
Airborne Early-warning and
Control Aircraft
2
14
Modern Armoured Infantry
Fighting Vehicles
1,105 2,390
Aircraft Carrier
1
1
Cruisers/Destroyers
10
13
Frigates (Small Warship)
11
65
Goverment Organisations in Defence Sector
The Defence Research and Development Organisation
(DRDO) was established in 1958. Starting with only 10
laboratories, DRDO has grown multi-dimensionally and
has evolved to be a core research organisation with a vast
network of 52 laboratories and establishments spread
across the country. With a vision to empower India with
cutting-edge technologies and equip our services with
internationally competitive systems, DRDO has proven
its competence to produce state-of-the-art strategic
and tactical military hardware and related technologies
in diverse disciplines such as aeronautics, armaments,
combat vehicles, combat engineering, electronics,
missiles, life sciences, materials and naval systems.
Major Public Sector Undertakings in defence
Sector
• Hindustan Aeronautics Limited (HAL)
• Bharat Electronics Limited (BEL)
• Bharat Earth Movers Ltd (BEML)
• Mazagon Dock Limited (MDL)
• Garden Reach Shipbuilders & Engineers Ltd (GRSE)
• Goa Shipyard Ltd (GSL)
• Bharat Dynamics Limited (BDL)
• Mishra Dhatu Nigam Limited (MIDHANI)
Defence Ordnance Factories
Indian Ordnance Factories come under the Department
of Defence Production of the Ministry of Defence. It is
a conglomerate of 39 Factories, 9 Training Institutes, 3
Regional Marketing Centers and 4 Regional Controller
of Safety. Ordnance Factor Board (OFB) provides a broad
and versatile production base with multi-technology
capabilities, State of the art manufacturing facilities.
Large reservoir of skilled and professionally qualified
manpower and managerial personnel, A strong base for
industrial training facilities and ready market access due
to convenient location
Private Sector in Indian Defence Industry
The private sector mainly has been involved in supply
of raw materials, semi-finished products, parts and
components to Defence PSUs and Ordnance Factories to a
great extent and also to BaseWorkshops of Army and Base
Repair Depots of Air Force and the Dockyards of the Navy.
Defence PSUs and Ordnance Factories are outsourcing
their requirements from private sector (mainly SMEs) in
the range of 20-25%. Out of this outsourcing, about 25%
requirement is met through small scale sector.
Several hi-tech equipments have also been successfully
produced by the private sector. In the quest for self-
reliance in the crucial sector of defence, the Government
has been continuing its efforts to indigenize defence
equipment wherever technologically feasible and
economically viable. It has been a part of indigenization
efforts to locate and develop broad-based indigenous
supply source both in the public sector and in the civil
trade for many complicated and intricate equipments.
After considering the capital intensive nature of
defence industry sector as also the need to infuse
foreign technology and additional capital including FDI,
government decided in May, 2001 to open Defence
industry for private sector participation up to 100% with
FDI permissible up to 26% - both subject to licensing.
Nowwith this policy change all defence related items have
been removed from reserved category and transferred to
the licensed category, as a result of which private sector
India's Defence Sector
Defence
