india increases defence spending invites foreign investment
Last Updated : GMT 08:31:41
Arab Today, arab today
Arab Today, arab today

India increases defence spending, invites foreign investment

Arab Today, arab today

Arab Today, arab today India increases defence spending, invites foreign investment

New recruits of the Jammu
New Delhi - AFP

India announced Thursday it would lift the cap on foreign direct investment in the defence sector to 49 percent and announced a 12-percent rise in military spending as part of efforts to modernise its armed forces.
In his first budget, Finance Minister Arun Jaitley raised defence spending for the current financial year to 2.29 trillion rupees ($38.3 billion), up from 2.03 trillion rupees budgeted in the 2013-2014 year.  
Jaitley, who is also defence minister, said he planned to open up the military industry to foreign investment, lifting the limit from 26 percent to 49 percent, with Indian companies retaining management and overall control.
"There can be no compromise with the defence of our country," Jaitley told parliament.
"Modernisation of the armed forces is critical to enable them to play their role effectively in the defence of India's strategic interests."
- Investor scepticism? -
Thursday's budget also included 10 billion rupees ($167 million) for railway lines in border areas that is expected to be targeted at areas neighbouring rivals Pakistan and China.
India has eyed Chinese investment in railways near its border anxiously, with Beijing ploughing billions of dollars into infrastructure in Tibet.
India is one of the world's biggest arms importers, traditionally relying on Russia and in more recent years the United States for equipment and technology due to weaknesses with its own industry.
But slow procurement over decades and the collapse of a string of defence deals during the previous centre-left Congress party government's rule has left the military short of key equipment.
Jaitley said last month he aimed to speed up buying in the interests of "national security", while experts expect a more muscular foreign policy under the new adminstration.
Prime Minister Narendra Modi, a hardline nationalist, won landslide elections in May, pledging to reform and revive the economy which has slumped to a decade-low level.
India's military has grown increasingly frustrated at the state of its equipment as it looks to defend itself against an increasingly assertive China and from Pakistan.
Defence analyst Rahul Bedi said the new cap would fail to lure foreign companies because it was less than 50 percent and they feared losing rights to their sensitive technology.    
"It doesn't matter if it's 26 percent or 49, it's not 51 percent which puts them in control, so foreign investors are going to look at this with scepticism," Bedi from IHS Jane's Defence Weekly told AFP.
India hiked its military spending by a huge 34 percent in 2009-2010 over the previous year after the 2008 attacks in Mumbai by Pakistan-based gunmen killed 166 people and revealed gaping holes in the country's security setup.
India overtook China to become the world's biggest importer of arms in 2010, according to the Stockholm International Peace Research Institute, which monitors the global arms trade.
The US has displaced Russia as India's biggest arms supplier, importing $1.9 billion of military kit from the US in 2013, according to research from IHS Jane's.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

india increases defence spending invites foreign investment india increases defence spending invites foreign investment

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

india increases defence spending invites foreign investment india increases defence spending invites foreign investment

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today PNG police start removing refugees

GMT 03:00 2017 Friday ,24 November

PNG police start removing refugees
Arab Today, arab today Sophian Yussef reveals suitable decoration

GMT 02:56 2017 Thursday ,23 November

Sophian Yussef reveals suitable decoration
Arab Today, arab today Syria congress to go ahead

GMT 02:24 2017 Friday ,24 November

Syria congress to go ahead
Arab Today, arab today IS media offline for a day

GMT 02:10 2017 Friday ,24 November

IS media offline for a day
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Human form of 'mad cow' disease

GMT 00:11 2017 Friday ,24 November

Human form of 'mad cow' disease
Arab Today, arab today British woman jailed in Iran to appear

GMT 03:19 2017 Friday ,24 November

British woman jailed in Iran to appear
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mitsubishi Materials units falsified product

GMT 03:24 2017 Friday ,24 November

Mitsubishi Materials units falsified product
Arab Today, arab today 'Robo-taxis' hold promise, and perils

GMT 08:07 2017 Thursday ,23 November

'Robo-taxis' hold promise, and perils
Arab Today, arab today Abeer Sabry reveals reason of “The Flood” success

GMT 08:03 2017 Tuesday ,21 November

Abeer Sabry reveals reason of “The Flood” success
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 07:56 2017 Monday ,20 November

Singer Jahda Wahba has unlimited ambitions

GMT 08:03 2017 Thursday ,23 November

Srebrenica women cry tears of joy

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts

GMT 09:12 2017 Thursday ,23 November

4 in 10 cancers due to modifiable risk

GMT 10:47 2017 Wednesday ,22 November

The Big Apple bike boom

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday