The Defence Ministry today stated that the total value of expenditure on defence equipment including stores, amounts to Rs. 57,340 crore for the year 2006-2007, which makes it the tenth largest country in military expenditure as per US dollars term.
New Delhi, Sept 5 : The Defence Ministry today stated that the total value of expenditure on defence equipment including stores, amounts to Rs. 57,340 crore for the year 2006-2007, which makes it the tenth largest country in military expenditure as per US dollars term.
Out of the total expenditure, import amounts to Rs.10,022 crores , and major countries from which the imports are made include Russia, the USA, the UK, France, Germany and Israel, Defence Minister A K Antony told Rajya Sabha today.
He said that the option of import is exercised "only when it is necessary to procure the items within a definite timeframe to bridge the capability gaps and normally when such equipment cannot be sourced indigenously within a specified timeframe."
On the issue of defence procurements from Russia, which has been marred with delays, and Russia upping the price of Sukhoi fighters citing inflation, Antony said that negotiations are on with Russia to decide the annual escalation rate for the years 2008.
In April 2002, India had signed a protocol with Russia for licence production of 140 SU-30 MKI aircraft by Hindustan Aeronautics Limited, and had then determined a net annual escalation rate of 2.55 percent valid till 2007.
India has entered into several agreements with Russia. The prominent among them are procurement of aircraft carrier (ex-Admiral Gorshkov), and purchase of MiG-29K aircraft and Sukhoi 30 MKI aircraft.
India's sale of defence products to foreign countries has also peaked and exported defence products amounting to Rs 428.84 crores during the year 2006-2007, according to the Defence Ministry.
Though the defence products have been sold to countries like Nepal, Sri Lanka and Bhutan, the Government has received proposals from various countries like Indonesia, Chile, Malaysia, Thailand, Vietnam, Israel, Algeria, Botswana, Kenya, Belgium, Cyprus, Turkey, Surinam and others.
ANI