GOVERNMENT OF INDIA
Ministry of Defence
DEPARTMENT OF DEFENCE
UNSTARRED QUESTION NO. 2843
TO BE ANSWERED ON 2.5.2012
Increase in Import of Major Weapons
2843. SHRI RAJEEVCHANDRASEKHAR:
Will the Minister of DEFENCE be pleased to state:
(a) whether India’s import of major weapons has increased considerably during the last five years, as compared to China;
(b) if so, the year-wise details thereof; and
(c) the steps Government is taking for improving and increasing indigenous production of weapons and military goods?
MINISTER OF DEFENCE
(SHRI AK. ANTONY)
(a) Sir, authoritative information regarding import of major weapons by China is not available. However, as per report published in March 2012 by the Stockholm International Peace Research Institute (SIPRI), India has become the largest importer of arms during 2007-2011 and accounted for 10% of the global arms imports as compared to China’s share of 5%.
(b) The amount of expenditure incurred by India on capital acquisition for modernization of Armed Forces through imports during 2007-2011 is as under-
Amount spent on foreign procurement
(c) With a view to achieve greater self reliance in Defence production, the Defence Industry was opened up for Indian Private Sector participation in May 2011 with FDI permissible up to 26%, subject to licensing. The ‘Make’ Procedure was promulgated in 2006 to encourage indigenous development. Government included a categorization ‘BUY & MAKE (Indian)’ in the Defence Procurement Procedure in November, 2009 to encourage indigenous production. There is also provision for 30% offset obligation in all Capital Acquisitions categorized as Buy (Global) or Buy & Make with ToT where the estimated cost of the acquisition proposal is Rs. 300 crore or more.
Government has announced the Defence Production Policy in January, 2011.