India Plans To Cut Defence Budget By 50%

Believe it or not! India plans to cut defence budget by 50% within a decade.
The revelation has recently been made by Indian Minister of State for Defence Subhash Bhamre while speaking at a seminar, titled ‘Leveraging defence expenditure as a tool for nation building’. The minister said that “nearly USD 14 billion worth of defence offset obligations would be discharged in India by foreign Original Equipment Manufacturers (OEMs) by 2028”.
At the same time, Bhamre expressed hope that the Indian defence industry would soon become a huge foreign exchange earner, stressing that the move would lead the South Asian country to its professed goal of self-reliance. He also portrayed the current state of the defence sector, saying that India, which has the third largest armed forces in the world, spends nearly 40% of its total defence budget on capital acquisitions and meets 60% of defence requirements through imports.
The minister informed the audience that the Narendra Modi government recently asked the defence manufacturing sector to concentrate on innovation with a special focus on R&D and to prepare a pool of human resource expertise in order to make equipment and technologies cheaper. “The sector has not only the potential to augment manufacturing, but also add nearly one million direct and indirect jobs,” he said.
Commenting on the Indian government’s future plan for the defence sector, Bhamre said that it would soon prepare a framework for encouraging collaboration between public and private sector companies for defence export on the basis of Public Private Partnership (PPP) model. According to the minister, the framework will allow Defence Public Sector Undertakings (DPSUs) and private sectors to prepare a system for sharing the capability and capacity to support overseas sales, servicing and maintenance throughout the life of the product.
Meanwhile, Bhamre has welcomed private sector companies’ move to demonstrate their worth in fields of automobile, IT and service sectors at global platform, saying that the government would provide the private sector with all sorts of help to improve their human resource capacity. “The government is also trying to replicate the same model by inducing private sector and foreign OEMs to invest in defence manufacturing,” he told the audience.

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