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india plans to buy weapons worth $100 billion

Discussion in 'Indian Defence Industry' started by shans, Aug 4, 2011.

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  1. shans

    shans 2nd Lieutant FULL MEMBER

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    India plans to purchase military equipment, including fighter planes, warships, helicopters and artillery guns, worth $100 billion in the next ten years, which would make the country one of the world’s most lucrative arms markets.

    The whopping purchase order would benefit the Indian defence industry in a big way because of the inflow of $30 billion (Rs I.5 lakh crore) as offset in the industry, officials informed the Parliamentary Standing Committee on Defence that submitted its report on Wednesday.

    Under Offsets policy—a provision in the military procurement policy—if the government wants to purchase any military equipment worth more than Rs 300 crore, the supplier will have to re-invest 30 per cent of the contract amount in Indian defence, homeland security and aviation industry for the growth of the domestic industries.

    Incidentally, while the 2005 policy envisages 30 per cent offset, the government hiked the its limits to 50 per cent in India’s biggest defence deal —$10.4 billion race to buy 126 medium multi-role combat aircraft.

    The offset policy is in existence since 2005 and has been refined over the years now.
    The Defence Research and Development Organisation (DRDO) had benefited from the offset policy in the recent past.

    Offset amount

    As India plans to buy 10 heavy-lift C-17 Globemaster aircraft from the US aviation major Boeing for Indian Air Force at a cost of $ 4.1 billion, the offset amount comes down to about $1 billion, which roughly translates to Rs 4500 crore.

    Almost half of the offset amount—about $500 million—is being used to purchase equipment to set up a new high-altitude engine testing facility under the DRDO, which now goes abroad for such tests.

    In addition, equipment worth $ 300 million are being brought to establish a new wind tunnel facility for testing missiles and fighter aircraft of the future, a defence ministry official informed the House panel.

    Source:- india plans to buy weapons worth $100 billion . | idrw.org
     
  2. Manmohan Yadav

    Manmohan Yadav Brigadier STAR MEMBER

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    kya baat hai :india:

    I just hope these politicians keep corruption in these deals to the minimum
    I wont say corruption free, because there will be corruption there is no avoiding it.
     
  3. tariqkhan18

    tariqkhan18 Major Staff Member ADMINISTRATOR

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    The numbers in the article dont add up.
     
  4. shans

    shans 2nd Lieutant FULL MEMBER

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    they never do ... thats why its a news from India :azn:
     
  5. Novice09

    Novice09 2nd Lieutant FULL MEMBER

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    The reported might have used round up option ....:laugh:
     
  6. Vritra

    Vritra Major ELITE MEMBER

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    The numbers don't add up because they've seemingly decided not to mention numerous acquisitions that will take place:

    Navy:
    • Submarines (nuclear, SSBN, conventional)
    • Surface crafts (Frigates, destroyers, possibly amphibious warfare/landing docks, etc)
    • Aircraft carriers (Two already on the way, third in the planning stages, provisions for a 4th).
    • Sagarika SLBM/other SLBMs.
    • N-LCAs (Mk.1 and Mk.2) and N-MRCAs.
    • Patrol and surveillance aircraft.
    • ASW aircraft (in addition to the P-8Is)
    • Transport and Medevac Helos.
    • UAVs/UCAVs

    Army:
    • Arjun MBTs (Mrk. 2s)
    • LCH
    • MRTA (being developed in collaboration with Russia)
    • Upgrades to existing transport aircraft (already underway)
    • Upgrades to battalions of T-72s (already underway)
    • UAVs/UCAVs
    • New SAMs
    • New Battlefield Ballistic Missiles
    • New Howitzers/artillery
    • New AACs
    • F-INSAS programme (including new modular weaponry, communications equipment, protective gear, etc.)
    • Ground-based transport and support vehicles (Trucks, Jeeps, etc.)
    • Development of new APCs.

    Airforce:
    • Development of a twin-seat version of the PAK FA for the IAF ---> Subsequent acquisition (Pegged at over $30 billion for a total of 250 aircraft, so at least 1/5th of that should've been spent by 2020)
    • LCA (Mrk. 1 and Mrk. 2)
    • LCH
    • Light Observational Helicopter
    • MRTAs
    • AEW&Cs programme
    • UAV/UCAVs
    • Trainers (Basic and Intermediate)

    Being acquired by all three arms:
    • Modern weaponry (Assault carbines, MANPADs, etc.)
    • BrahMos Missiles
    • Long range Ballistic Missiles
    • Ballistic missile defence systems
    • Radar and Surveillance equipment

    ....Not to mention a whole swath of guided weapons, orbital surveillance systems, expansion/modernisation of military bases, and a whole load of other stuff I can't think of as of now/the public hasn't been notified of yet.

    In all, the figure of $100 billion seems conservative, if anything.
     
  7. shans

    shans 2nd Lieutant FULL MEMBER

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    Sadly, With delay these figures might move up by another 15-25%.
     
  8. Tshering22

    Tshering22 Captain SENIOR MEMBER

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    I really pray that the coming government plans out a rigorous and rapid setup for indigenous development. I don't know how our planners have kept all the fine weapons for beyond 2012 till which our pilots and soldiers have to suffer with outdated and dangerous equipment. Already 2 air warriors have been martyred. :angry:
     
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