India’s defence spending, accounting for 2.5% of the country’s GDP, will increase with the overall growth of the economy, according to defence minister AK Antony.
Antony said that the Indian economy is expected to grow at 8–10% for the next two decades and expenditure on defence in absolute terms is bound to increase in equal proportion.
The country’s political security situation demands rapid modernisation of armed forces, according to the minister.
“India’s government is committed to rapid modernisation of armed forces as we want our forces to be equipped with state-of-the-art technology and equipment to defend our sovereignty,” Antony said.
The defence minister called on the country’s private sector to participate in the process of indigenising India’s armament needs.
The defence industry is open to 100% of bids from India’s private sector while up to 26% of foreign direct investment is allowed, according to Antony.