India spends more on Indigenous Defence Equipment’s then on Imported Ones

[ANPP]

This is incorrect.

I suggest you re-read the news item ....

India's defence budget is about $40 billion per year.

The defence imports are about $3 billion per year.

So, 90% of the defence spending is spent in India itself.

The $ 3 billion imports is all equipment... but the big chunk goes to large capital items. However, about 70% of the hardware, even though of foreign-make, gets built in India. (e.g. 70% of Mig-21s with IAF are made in India; so are the Su-30MKIs).

Just HAL's annual revenue is $2.36 Billion. Add-in the annual revenue of ordnance factories; private defence contractors - Tata, M&M, L&T. Add annual revenue of defence shipyards. Add annual revenues of defence PSUs : BDL, BEL.. bla bla.

The equipment purchase could be atleast $15-20 billion (all the above items are equipment purchase). Even then, spending $20-25 billion on salaries, fuel and rations is quite a big amount.

So, with $ 3 billion imports per year in a (atleast) $15 billion equipment purchase.... still the ratio is 20% imports versus 80% indigenous procurement.

This does not hide the fact that $ 3 billion imports all consist of high visibility items; while the foundation of defence machinery is indigenous, yet not too visible.

See, the annual defence imports by India:

Arms industry - Wikipedia, the free encyclopedia

I clearift you here my friend

>> 40 B$ budget is not just for purchasing items, but also for training, maintenance etc. So if we purchase 3B$ item from foreign than only 1B$ is spend here( 30% indigenous).

>>The revenue of HAL & other companies is high but the hardware we develop in INDIA, we still import the costly equipment from other countries, which are very costly. Like engine, transmission s/s, & fire control s/s coast 60% of hole ARJUN. % in the DHRUV is even very high, according to HAL DHRUV is 70% indigenous by weight (by 2008), but CAG report shows that 85-90% items are still imported for DHRUV (2009). by cost.

>> In one report, although now I forget the name of report, I read that IA spend more than 100M$ in NEPAL just for widows, pension & war injured. So just think about what they spending in INDIA here.

 

[Boson]

mate, i want to make some points here:

1. The link which u provided gives data of 3.3 billion dollars of import for 2010 (u r comparing imports of 2010 with current budget), when India's defence budget was around 32 billion dollars & not 40 billion dollars, out of that capital expenditure was only around 7-8 billion dollars, rest was spent on normal operating cost.

What is the percentage if you compute 3.3 billion / 32 billion?

And any components purchased to build Su-30MKIs in India do get added up in $3.3 Billion.
Whatever components / assembling done by HAL itself; that money remains in India. The key is the money.

Second, your data on capital expenditure ($7-8 Billion) is completely wrong.

See the link: India

It's actually 42% of the defence budget; hence about $ 17 Billion.

Hence, even as a percentage of capital expenditure: $3.3 Billion / $ 17 Billion is less than 20%.
80% of capital expenditure is also spent in India.

2. The point which u raised that we buy & make defence equipments at HAL (licensed production) so it is like indegineous is flawed, making defence equipments under license is not equal to making them indegineously, this is like saying if coke has an Indian factory so the coke is an Indian product.

3. HAL & DRDO's annual revenue u r talking about also includes the exports + the civilian tech they develop, so all revenue is not from Indian military.

+ defence minister (i think) has distorted the figures very well, he has also included all the license produced weapons as made indegineously, as now we make nearly all the weapons under buy & make category & minimize direct off the shelf buy.

The only thing is matters is how much money is to paid to foreign countries ...

In the last 11 years (2000 to 2010) the total amount is $ 20.78 Billion (see same link which I posted earlier).

Honestly, I won't be surprised if Indian defence forces spend more on fuel (almost all is imported as crude oil from abroad, but processed in Indian refineries) ..... would be much more than $ 3.3 billion in equipment imports.

And we won't get any PPP adjustment benefit for fuel costs since it's not local production. Aircraft sorties are fuel guzzlers. I heard one sortie burns fuel costing atleast 1 Lakh rupees !!!!! -- this is like 1 lakh gone in less than half an hour (and used by a single fighter pilot).

(This is the reason pilot flying hours are a vital statistic -- they give vital experience / training; but each hour flown is costly).

Rations, salaries, logistics - all come cheaper than global benchmark comparisons, because they are all paid at local prices.

Hence, in material terms... the volume of local sourcing is much much higher than the volume of foreign sourcing.

 

[samr23]

The amount of defence equipments that are made in india indegenously and by ToT is huge. Sadly most people,including indian members doesn't know that!

Thats true the ready made stuff that India gets is nothing comapared to that is produced in India. Hal is right now investing 2 billion for building new manufacturing facilities. If u read geopolitics the land has already been acquired and state govts are extremely eager to bring in such engineering projects.

They r building one helicopter unit for lch and luh and another for mmrca.

Now add to that the private sector which is jumping into this field. Every company wants to make india as its hub. U can google urself.

Most of the equipment in the Indian navy ships like electronics and rocket launchers and produced in India and are not imported, except engines and some special systems.

 

[Boson]

The only key thing is the fuel costs (crude oil imports) .... they would need to paid to foreign countries.

Defence is a large buyer of ATF (see the list of dedicated military fuel depots at each air force base) + huge diesel demand of Naval warships + whatever the mobile units of army need to maintain mobility (again diesel demand) + Fuel burnt by helicopter squadrons all over the mountainous borders...

All this fuel has the biggest import content .. .the crude oil. And, no doubt it's large.

 

[Gurmani]

india has an intense desire to collect weapons.

 

[samr23]

india has an intense desire to collect weapons.

Yes and also an intense desire to be a strong nation. So we need a vibrant and growing defence industry.

 

[Gurmani]

every year india buy a large amount of weapons from usa, israel and russia. I think it is more than home made weapons.

be a strong nation but always keep in mind the peace. A large amount of weapons which is greater than one needs shows some thing other.

be a strong nation but always keep in mind the peace. A large amount of weapons which is greater than one needs shows some thing other.

it's not fair that your nation is facing poverty and you want to make extra weapons.

 

[samr23]

every year india buy a large amount of weapons from usa, israel and russia. I think it is more than home made weapons.

be a strong nation but always keep in mind the peace. A large amount of weapons which is greater than one needs shows some thing other.

be a strong nation but always keep in mind the peace. A large amount of weapons which is greater than one needs shows some thing other.

Our defence budget is nothing but 1.8% of gdp, while pakistan defence budget is over 3%. Do your research before making claims.

India now wants to produce its own weapons and create a complete value chaing in defence industry. Yes we do get weapons from abroad, but those companies have to invest 30-50% of money in India.


Most 50% of scorpene sub equipment is sourced from India.
Russia now wants to make india hub of sukhoi production as India produces su 30 completely in India.
Dcns wants to manufacture its ships in India.
sirkozy is shifting its manufacturing to tata industries.
Lockhead marting wants to manufacture c130 in India.
Hal of India is now manufactuing Lch, alh , luh and soon mmrca and tejas.
Drdo's total projects have crossed 35 billion dollars and are growing exponentially.
India now builds its on nuclear subs.
Most Indian warships now now have Indian made weapons.
India manufacturs its own aesa radars.

 

[IND151]

I wanna see an indigenous turbo fan engine in my lifetime. DRDOjee iis bande ki akhri murad puri kardo

Nirbhay will need a turbofan engine which no one will give us

hence DRDO is working on LaghuShakti Turbofan Engine which will power Nirbhay

 

[IND151]

I clearift you here my friend

>> 40 B$ budget is not just for purchasing items, but also for training, maintenance etc. So if we purchase 3B$ item from foreign than only 1B$ is spend here( 30% indigenous).

>>The revenue of HAL & other companies is high but the hardware we develop in INDIA, we still import the costly equipment from other countries, which are very costly. Like engine, transmission s/s, & fire control s/s coast 60% of hole ARJUN. % in the DHRUV is even very high, according to HAL DHRUV is 70% indigenous by weight (by 2008), but CAG report shows that 85-90% items are still imported for DHRUV (2009). by cost.

>> In one report, although now I forget the name of report, I read that IA spend more than 100M$ in NEPAL just for widows, pension & war injured. So just think about what they spending in INDIA here.

but still producing in India means 15 to 20% of money spent on weapon goes back in Indian Economy

Our defence budget is nothing but 1.8% of gdp, while pakistan defence budget is over 3%. Do your research before making claims.

India now wants to produce its own weapons and create a complete value chaing in defence industry. Yes we do get weapons from abroad, but those companies have to invest 30-50% of money in India.


Most 50% of scorpene sub equipment is sourced from India.
Russia now wants to make india hub of sukhoi production as India produces su 30 completely in India.
Dcns wants to manufacture its ships in India.
sirkozy is shifting its manufacturing to tata industries.
Lockhead marting wants to manufacture c130 in India.
Hal of India is now manufactuing Lch, alh , luh and soon mmrca and tejas.
Drdo's total projects have crossed 35 billion dollars and are growing exponentially.
India now builds its on nuclear subs.
Most Indian warships now now have Indian made weapons.
India manufacturs its own aesa radars.

add this

http://www.defence.pk/forums/indian...-92-helicopter-airframe-flies.html?highlight=

 

[ANPP]

but still producing in India means 15 to 20% of money spent on weapon goes back in Indian Economy
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You are wright but your figure of 70-805 home made is out of sense

but still producing in India means 15 to 20% of money spent on weapon goes back in Indian Economy
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You are wright but your figure of 70-80% home made is out of sense