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Defence budget up by Rs 1.64 lakh crores

Good news!!! We need to increase our Defence budget every year, while considering the threat perception from our Eastern border.....:)))
 
Pranab dada even reducing the income tax upto some extent for lower tiers while increased spending on every projects and less fiscal deficit!!! All things turns to voter-friendly budget and saving some face after so many scams. Now all the burdens on the corporates!!!! :lol: I think they can bear it. :woot:
 
Sensex jumps 500 points post Budget

Varun Sinha, February 28, 2011

The markets have given thumbs up to the Budget. At 1.44 pm, the Sensex was trading at the day's highest point. The Sensex rose 564 points to 18,265 and the Nifty advanced 163 points to 5,467.

This Budget is seen as a positive as the major taxes have not been increased. The excise duty and service tax has been retained at 10 per cent against expectations of a 2 per cent hike. The FM has also proposed to cut the surcharge on domestic companies from 7.5 per cent to 5 per cent. The only dampener is the hike in MAT from 18 per cent to 18.5 per cent.

All sectoral indices were trading in the green. The auto sector, that had been a laggard since the morning, rebounded to rise 3 per cent. Capital goods stocks rose 3.5 per cent.



Read more at: Budget News: Sensex jumps 500 points post Budget - NDTV Profit
 
Economy to grow at 9% in 2011: Pranab

NDTV Correspondent, February 28, 2011 (New Delhi)


The finance minister today said that the GDP for 2010-11 grew at an impressive 8.6 per cent.
The agriculture sector has grown at 5.6 per cent, industries grew at 8.1 per cent and the services sector has grown at 9.6 per cent. The economy is likely to grow at 9 per cent in FY 12, the FM added.

The current account deficit is a concern and we expect a smaller current account deficit this year. The FM also said that the current account deficit needs to be better managed. The current account deficit includes the balance of payment which is the differnece between exports and imports.


Read more at: Budget News: Economy to grow at 9% in 2011: Pranab - NDTV Profit
 
Indian defense in midst of major modernization program worth $42 billion



The demand for state-of-the-art gadgetry has seen the Ministry of Defense purchasing equipment worth $25 billion in the last four years


India, in the process of upgrading and overhauling its defense systems, is planning to sign mega-deals that, according to conservative estimates, could be worth $42 billion.


A study undertaken by the top industry body in the county, the Confederation of Indian Industry (CII), along with audit company KPMG, says that New Delhi will soon ink a deal for the purchase of 126 multi-role combat aircraft, which would be in the range of $10.4-billion.

The study also said that India is the "most attractive market for both global and domestic arms industry." The demand for state-of-the-art gadgetry has seen the Ministry of Defense purchasing equipment worth $25 billion in the last four years, and going by the trend, deals worth $41.99 billion could be signed shortly.

As far as the distribution is concerned, all the three defense wings --- army, navy and air force --- are likely to get an equal share. While the army and the air force will purchase $14 billion worth of equipment each, the navy is expected to ink deals worth $13 billion.

"Since 2007, the air force has acquired defense products worth $17.46 billion, the navy $6.16 billion, the army $420 million and the coast guards $616 million," the study revealed. The exhaustive report, while factoring in India's overall growth, said that the country would spend nearly $150 billion by 2030.

Quoting the Defense Production Secretary, the study said that in the next 10 years, the ministry would upgrade its 1.3-million-strong armed forces at a cost of $100 billion, adding that this was the biggest ever modernization exercise undertaken by the Indian government.

The list of gadgetry to be procured includes 126 multi-role combat aircraft, 10 C-17 transport aircraft, 15 heavy-lift choppers, 22 attack choppers, and 197 light utility helicopters.

In its concluding statement, the study says that both the Indian defense industry and its aerospace program were in the phase of complete modernization, which would drive growth and bring stability to the country.




Read more: Indian defense in midst of major modernization program worth $42 billion | AHN
 
What is the share for IAF/IN/SFC in this budget?

Union Budget 2011: Budgetary allocation for defence up 12% to Rs 1.64 lakh cr

BANGALORE: Keeping a balance between fiscal prudence and the India's strategic imperatives, Union Finance Minister Pranab Mukherjee hiked the country's defence budget by almost 12 percent to Rs 1.64 lakh crores for fiscal 2011-12.

Most importantly, defence capital acquisition for the financial year 2011-12 has been hiked to Rs 55,000 crores, while capital expenditure for the same has been raised by about 12 percent to Rs 69,199 crores a move that should provide a sizable boost to the ongoing military modernisation programme.

"It is a pretty good budget for the Ministry of Defence , especially, taking into account the 9% jump in revenue expenditure and a huge jump in capital acquisitions. A country's defence is defined by its needs, and I think, this government has recognised that," Laxman Behera, senior fellow at the New Delhi-based think-tank, Institute for Defence Studies and Analyses, told the Economic Times.

The government has clearly taken into account the number of big-ticket arms purchases expected to take place in the upcoming fiscal, including the high-profile, but much-delayed $11 billion Medium Range Multiple-Role Combat Aircraft (MMRCA) tender for 126 fighter jets earmarked for the Indian Air Force.

During Aero India in February, the Chief of Air Staff P.V. Naik had stated that, barring complications, the contract should be signed by September later in the year. The MMRCA tender has some of the world's largest arms vendors, including Boeing , Lockheed Martin and Dassault, competing for one of the largest defence contracts currently in play.

Acquisition of 145 Ultra Light Howitzers and 197 advanced helicopters for the IAF and the Indian Army are also on the cards. Of the total budgetary allocation, the Army has been granted Rs 64,251 crore, Navy Rs 10,589 crore, Air Force Rs 15,928 crore and DRDO Rs 5,624 crore.

From the Rs 69,199 crore capital outlay,
the Army got Rs 18,986 crore,
Navy Rs 5,688 crore,
Naval Fleet Rs 7,320 crore and
Air Force Rs 30,699 crore.


The hike of 12% in defence budgetary allocations, compared to 4% last year, emphasises New Delhi's two-pronged strategic approach, a more secure northern border, which it shares with China and Pakistan, and a greater presence in the Indian Ocean.

India's defence budget emphasises the fact that the country is one of the most lucrative arms markets in the world, at a time when the rest of the world have significantly cut their military spending. Both the United Kingdom and the United States have announced plans to cut their respective defence budgets to contain their burgeoning national fiscal deficits.

The former undertook a strategic defence and security review and then a spending review, which has led to an 8% reduction of its defence budget over a four-year up to 2015. The US plans to cut its defence budget by $78 billion over a five-year period, in addition to the $100 billion that its Department of Defence plans to accrue through various saving measures.

Separately, Mr Mukherjee also said compensation of Rs 9 lakh would be paid to members of defence and central paramilitary forces for permanent disability and who had been discharged from office.

However, industry may be disappointed with the finance minister choosing to keep mum on the contentious subject of greater foreign direct investment in the defence sector. Mr Mukherjee said in Parliament that further liberalisation of the government's FDI policy was going to continue, with regulations to be consolidated in a single document.

Indian companies have been pressuring the government to allow greater foreign participation in its defence industry as New Delhi gears up to spend more than $100 billion over the next decade to modernise its archaic Soviet weapons-equipped armed forces. So far, the Centre has resisted the move, pointing to the sensitivities involved.

"It is disappointing that the defence was not mentioned with regard to the FDI policy. Some clarification on the same would have been better," Mr Behera said.

Also, the finance minister did not comment on the setting up of a research and development fund in the budget as mentioned in the recently-released Defence Production Policy 2011.

Union Budget 2011: Budgetary allocation for defence up 12% to Rs 1.64 lakh cr - The Economic Times
 
increasing the defence budget is not good as long we do not have any strategic vision.. they are the unproductive sector..Indian should focus more on R&D and indigenous stuffs like china
 
increasing the defence budget is not good as long we do not have any strategic vision.. they are the unproductive sector..Indian should focus more on R&D and indigenous stuffs like china

^^^^^^^^^ROFLMFAO.....................On Topic-The money for R&D comes from the defence budget itself because we do not have DRDO budget/Indigenous China budget!!!!! LMFAO
 
Our defence budget should not cross over the $40bn mark in my opinion until at least 2020, more money needs to go to fighting poverty and infrastructure for sure.
 

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