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Indian Defence Budget, Latest Proposal

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The newly re-elected United Progressive Alliance (UPA) Government has declared its latest budget proposal in which the defence sector has been allocated $28.9 billion for 2009-10. The annual defence spending for the previous year stood at $21.6 billion indicating a rise of 34 per cent in the current fiscal defence budget.

As for the budget allocation for new weapons and equipment, an amount of $11.8 billion has been earmarked for the year 2009-10 indicating a hike of about 33 per cent from the previous year’s figure of $8.36 billion. The budget has also allocated $4.44 billion for pensions, $970 million for the Defence Research and Development Organisation (DRDO) and $170 million for defence ordnance factories. DRDO is currently developing a 5,000 kilometer range nuclear missile besides other missiles and air defence systems in collaboration with  Israel.

The Indian Defence Ministry, yet again, was unable to spend an amount of $1.42 billion during 2008-009 due to acquisition delays and bureaucracy. The delays in acquisitions includes light utility helicopters and others like the 155mm artillery guns.

In the budget meant for buying new weaponry and equipment, the Indian Army gets a sum of $3.62 billion, the Indian Navy $2.4 billion and the Indian Air Force $4 billion.

Among the top priorities of the Indian Army is the procurement of over 1000 pieces of 155mm/52 calibre guns for which bids have been floated, variety of unmanned aerial vehicles (UAVs) additional T-90  tanks, upgrades for its T-72 tanks, mobile command posts for artillery regiments, advanced equipment for specialized forces, advanced anti-tank guided missiles (ATGMs), helicopters and Battlefield Management Systems.

The Indian Air Force has a solid agenda to procure variety of  UAVs, 126 Multirole Medium Range Aircraft, for which a global bid has been floated, additional aerial refuellers, helicopters to replace aging Cheetah and Chetaks, upgrade of MiG 29 and Mirage 2000-H aircraft, purchase of air defense systems, advanced missiles, and Beyond  Visual Range missiles and a dedicated satellite.

The Indian Navy will aim to acquire additional submarines including nuclear submarines and the Maritime Reconnaissance Aircraft in addition to the Long  Range Maritime Reconnaissance aircraft contracted from Boeing in early January 2009 for $2.1  billion. The Navy also requires unspecified numbers of UAVs, air defense missiles, heavyweight torpedoes for submarines, network-centric systems and additional warships.

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