Defence imports to cross 30-bn dlr by 2012: Assocham

Defence imports to cross 30-bn dlr by 2012: Assocham

NEW DELHI: Estimating Country's import of military hardware and software to cross $30 billion by 2012, industry chamber Assocham has asked the government to re-look its policy on defence procurement to allow greater participation of private players. The import of defence products has already reached $10.5 billion in the last three years, making India the largest importer of arms in the developing world, Assocham's paper on 'Avenues for private sector participation in Defence' said. "The country's military expenditure, excluding the pensions of defence and paramilitary forces, is around two per cent of the country's Gross Domestic Product (GDP)," Assocham President Venugopal N Dhoot said. With limited production capacity the pubic sector units are not able to meet the ever increasing requirements of the defence sector. In this backdrop, Assocham has suggested that the government should re-look at the defence procurement policy. The Chamber also seeks greater participation of private sector in matters related to the procurement of defence equipments for the armed forces. The country's defence imports bill, which is projected to be $30 billion by 2012 could be made cost-effective with private participation, the chamber said.