India Hikes Defense Spending by 24 PercentFebruary 17, 2009

 

While most countries in the world, including Russia, plan to cut their military spending this year because of dire economic problems, India announced it will hike its defense budget by 24 percent for the upcoming fiscal year.

The move will allow the country to fast-track military acquisitions following the Mumbai attacks in November, Agence France Presse reported.

The $29.4 billion defense hike represents 15 percent of the annual budget. This amount could increase further if necessary, acting finance minister Pranab Mukherjee told the Indian Parliament.

Defense minister A.K. Antony recently told participants of an international air show that India had no intention of cutting its defense spending even in the face of the global economic slowdown.

This spending represents the steepest hike since the country's independence in 1947. Most of the funds are earmarked for modernizing the world's fourth-largest military.

The more than one-million strong army has a long shopping list, including helicopters, artillery, fighter jets and air craft carriers.