India on Friday boosted military spending by 17 percent to $40 billion for the coming year as it seeks to counter China’s rapid military build-up and its traditional rival Pakistan. The government, engaged in a massive programme to upgrade the country’s ageing military hardware, increased defence spending to Rs 1.93 trillion for the financial year to March 31, 2013. “This allocation is based on present needs and any further requirement will be met,” Indian Finance Minister Pranab Mukherjee told lawmakers in announcing the 2012-13 budget in parliament.
The rise follows a 12 percent increase in defence spending in the previous year’s budget. India’s military is acquiring a slew of new equipment from combat aircraft to submarines and artillery. It is currently finalising a deal with France’s Dassault Aviation to buy 126 Rafale fighter jets in a contract worth an estimated $12 billion.
India hikes defence spending by 17 percent
