Report: Bangladesh defence spending to witness double-digit growth
Bangladesh’s annual defence expenditure is valued at $3.3bn in 2017 and is projected to reach $5.4bn by 2022, witnessing a compound annual growth rate (CAGR) of 10.36%, according to a report by Strategic Defence Intelligence (SDI).
Titled ‘Future of the Bangladesh Defense Industry – Market Attractiveness, Competitive Landscape and Forecasts to 2022’, the report offers insights of the present and future trends of the Bangladesh defence industry.
The allocation for capital expenditure is anticipated to be 25.5% during 2018-2022, whereas revenue expenditure allocation is expected to be 74.5% by 2021.
Whereas, homeland security expenditure is anticipated to grow at a CAGR of 11.99% to reach $4bn by 2022.
The army, air force, navy, and other defence units are projected to incur an average expenditure of 50.6%, 13.9%, 15.2% and 20.3% respectively of the defence budget.
The government’s well-defined military modernisation plans to better equip its navy, army and air force are anticipated to drive the defence spending growth.
The Government of Bangladesh also intends to develop the capacity to support international and regional security and peace-keeping activities, which creates substantial opportunities for foreign original equipment manufacturers (OEMs) to enter the market, the report adds.