India clears $4.74 billion defence purchase
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NEW DELHI: India's defence ministry has cleared the purchase of military equipment worth $4.74 billion, including four long-range patrol aircraft from US aerospace giant Boeing, an official said Wednesday.
The Defence Acquisition Council, which approves big-ticket purchases, also approved an order for 428 air defence artillery guns during a meeting late Tuesday, the official added.
“The council has cleared proposals relating mainly to purchase of air defence guns and long-range patrol aircraft for the navy,” the official said on condition of anonymity.
Also read: Indian arms imports almost triple China, Pakistan: study
India last year lifted a cap on foreign investment in defence as the government seeks to revamp its ageing military equipment.
The right-wing government that came to power last year also wants to boost local manufacturing and end the country's status as the world's largest arms importer.
Military purchases had stalled under the previous Congress government, slowing down much-needed investment in the high-profile sector.
The order for four new planes from Boeing follows an earlier deal to buy eight P-8I aircraft from the company in 2009. India has already received seven P-8Is with the eighth expected later this year.
The United States displaced traditional ally Russia as India's top supplier of armaments in 2013 and Washington and New Delhi renewed their 10-year Defence Framework Agreement during President Barack Obama's visit in January.
Read more
On DawnNews
Comments (102) Closed
Jul 15, 2015 12:07pm
way to go India... Strengthen the Defence cuz that is what guards the country from the external and internal threats..
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Jul 15, 2015 12:10pm
The spending is nothing compared to the economy. India needs security as it is surrounded by hostiles.
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Jul 15, 2015 12:47pm
Defence manufacturing must set a target of 50% localization. This industry will then grow to heights like Automotive where global majors are using India as export hub.
Also India needs more research institutions like Jack Welch Technology center in Bangalore.
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Jul 15, 2015 01:08pm
Complete the target of $250 billion upgrades asap. There should be no delay now. The $4.2 billion cleared today will bring $2.8 billion in FDI back to India as make in India program. Very nice. Achieve 10% GDP growth target by next year.
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Jul 15, 2015 01:10pm
India roughly has 70 million male population...@ Rs 50 per haircut, the total amount spent for haircut in a year is Rs 42,ooo Crores.
So no big deal that a USD 4.74 billion order for military ware has gone out !!!
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Jul 15, 2015 01:19pm
But what's new,India do defence purchases time to time,sometimes more costlier than that.That's an on-going process.Sometimes defence ministry gives out the purchasing information and sometimes it is confidential.
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Jul 15, 2015 01:26pm
Spend money on weapons to kill while maintaining the largest slum in Asia probably the whole world.
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Jul 15, 2015 01:29pm
@Sunil it's 700 million means 70 crore nt 70 million
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Jul 15, 2015 01:32pm
Good move Mr Modi. Make in India plan is major thurst in direction of self sufficiency in military hardware production. It will create minimum net outward flow of money and Indian will get jobs and have expertise in high end technology. Many private Indian companies like mahindra and mahindra, tata,reliance etc have started industries for military needs . They are big names in India and surely will come to main stream military companies in few years.
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Jul 15, 2015 01:40pm
I am interested in how my country increase their education and health budget
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Jul 15, 2015 01:41pm
This is totally non sense on part of Indian government. Poor population of over a billion!! and still spending huge amount of money on useless military armory... Wake up guys. War will never going to happen!! This shows sincerity of government towards the common man.
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Jul 15, 2015 01:43pm
India needs to upgrade their Defence forces at par with US forces. bcz after USA, World is looking towards Democratic India for Economic, cultural and Security ties. as they cannot trust the growing Communist power ever and within a decade US will loose his top Powerful nation's tag.
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Jul 15, 2015 01:53pm
@Kcik That doesn't mean people will skip a meal or stop the spending. Everything has a scheme and will run its course.
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Jul 15, 2015 02:12pm
@FAS War will never going to happen!
Only if we are strong.
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Jul 15, 2015 02:27pm
@FAS : War will never going to happen!!
Pls try to convince this to your own govt first. :)
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Jul 15, 2015 02:28pm
You guys did not cover the artillery guns will be manufactured in India with TOT
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Jul 15, 2015 02:31pm
4 billion dollars are peanuts compared to threat india has from china which spends 100 billion dollars..
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Jul 15, 2015 02:34pm
P8Is the SUBMARINE HUNTERS
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Jul 15, 2015 02:35pm
Pakistan and India are both nuclear powers, both have enough nuclear weapons to destroy each other thrice. Only some businessman, politician, and armed forces officials can benefit from that. These people are not interested in peace. Because it is source of income for them.
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Jul 15, 2015 02:41pm
Pakistan total defense budget is just 7 billion U.S. $ which India spend like change !!
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Jul 15, 2015 02:51pm
India is not threat to Pakistan isis has already entered in pak.
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Jul 15, 2015 02:54pm
@FAS What about your country? Don't you have poor population? Don't you spend on arms?
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Jul 15, 2015 02:57pm
@Sunil Varma The population of India is 1.3 Billion i.e 1300 Million. Lets say 700 Million are males thats 700,00,00,00 x 50 per hair cut is 35000000000 which is Rs.3500 Crores which is roughly half a billion Indian rupees.
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Jul 15, 2015 03:11pm
Thanks to Dawn for printing a quality article. To the point and talked about economic.
A few of my friends talking about why so much money to be spent on defense? There are main two points
1) It will bring some new technology to India faster by working with foreign companies, instead of trying to invent the wheel. As far as inventing the wheel goes on, I think only ISRO has some flags and its flags are as far as mars.
2) The other reason is, I think India has understood how important elephant tusk are. Sometimes you need to show and project some power. If you have 1/7th of this worlds population then you have a lot of mouth to feed, you need to be assertive. You have to stick your guns in holster.
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Jul 15, 2015 03:28pm
Indian Navy is aspiring to be a 200 warships + 600 aircrafts navy by 2027 . India needs to protect its interest especially oil which passes through the busy shipping lanes in the Indian Ocean. For this India needs a strong blue water navy. And so Indian Navy is undergoing a massive expansion. There are currently 48 warships and 7-8 subs undergoing construction across the country apart from acquisitions.
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Jul 15, 2015 03:39pm
I believe these planes will be used for fishing mackerel in the Indian (Pakistan) Ocean. Needless to say after Greece India has the highest Debt to GDP ratio and a default is imminent.
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Jul 15, 2015 03:42pm
India a country where a large majority of its people are starving this sounds ridiculous. Maybe US is giving this away as AID.
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Jul 15, 2015 03:48pm
@Kcik True but Indian defence forces needed lot of modernisation as lot of equipments were acquired in 80's.
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Jul 15, 2015 03:48pm
P8Is are the best in the business of Anti-Submarine Warfare (ASW) at the moment. P8 (Poseidon) is a quantum leap from the earlier P3C Orion platform which India doesn't have. Indian navy used Russian Tupolevs. Four new P8Is will bring the total to 12 which is needed considering India's vast coastline. P8Is also carry lethal bombs/torpedoes as well as air defense countermeasures. The electronics inside is state-of-the-art.
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Jul 15, 2015 04:00pm
@aam admi , we live here AND find nothing about ISIS and here comes indian stuck to their propaganda outlets and Tells us, ohh look guys there is ISIS in your country. oh really!
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Jul 15, 2015 04:01pm
interesting to see what tit for tat action Pakistan takes.
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Jul 15, 2015 04:05pm
More firecrackers for dewali just like submarine sunk in their own backyard in bombhai.
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Jul 15, 2015 04:15pm
India still has the largest number of poor in the world, even after all this aid by US of $65.1 Billion, more than all African countries combined, a huge 33-35 % of world poor lives in India. It is true that 70% of US aid reverts back to US in the form of services. The rampant and widespread poverty prevalent in India is not there in Pakistan...even with its huge foreign exchange and bigger economy the wealth is in the hands of few.
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Jul 15, 2015 04:17pm
Many Pakistanis and some Indians are pointing to India's poor. Others asking why not on education and health.
The internet was born in war time DARPA as it was called. Many materials used in many products today are a by product of defence research.
When India announced local manufacturing for auto and auto components there were exactly similar sentiments.
R&D in India will get a boost and many Indians will return to a India with promise of future.
Even if India progresses double fast and reduces poverty by half, Pakistan will still point to India's slums and poor. Sometimes you can give credit where it is due.
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Jul 15, 2015 04:28pm
@nitin India defense outlay is just 2.1% of GDP. So you have answer for your question. The rest of 97.9% is for poor people like you who want to keep their poor tag by not studying properly in their school days ending up doing daily wages menial jobs which have no guarantee.
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Jul 15, 2015 04:30pm
@eagle strike u go for UN report on %. Wise then see ur face on mirror u find the correct answer. If not found as per Pakistan penalisl discussed in Pakistan TV at 2025 per capita income in India is 35000rs per head and Pakistan had 2000rs per head let see how u open ur eyes
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Jul 15, 2015 04:30pm
@Kcik purchasing arms for saving that poor people's life only.
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Jul 15, 2015 04:36pm
@Javed, India still has the largest number of poor in the world, even after all this aid by US, more than all African countries combined, a huge 53-55 % of world poor lives in India. According to UN report 700 million indians live below 2 dollars a day.
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Jul 15, 2015 04:38pm
@Javed, lolzzz, According to UN report recently released india has 700 million living below 2 dollars a day. whats the point of overshadowing majority??? wake up its 2015.
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Jul 15, 2015 04:46pm
Indians should be smarter and use this money to help feed their poor and needy. One of the poorest nations globally should get its priority right.
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Jul 15, 2015 04:56pm
@Blue Saffron Sir your knowledge is very poor. Indian debt to GDP ratio is almost 66% percent, which is way less than 40 countries. And, those countries include USA, Germany, Japan etc... And, An economy's health is not determined by only debt to GDP ratio, it's the capacity to repay that debt that defines the standard of an economy. That's the reason that the whole world (except Pakistan) wants to be associated with India. Cheers!!
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Jul 15, 2015 04:57pm
@Common Sense : When you have hostile neighbours, the priority is to secure your borders. Also, if the Make in India is successful it will bring jobs and will help reduce the poverty. you missed this important point.
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Jul 15, 2015 05:03pm
They should also have allocated 1 % of this amount for building public toilets for women.
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Jul 15, 2015 05:05pm
@FAS Inspite of all this India still have a high per capita income than Pakistan....so don't give us the lecture of poverty...we know what is your status...
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Jul 15, 2015 05:06pm
@FAS When two highly armed neighbours are trying to take your territory by force and are in collusion, what India to do? First responsibility of any government is to protect the country.
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Jul 15, 2015 05:08pm
India now buying from US so Now Pakistan will be able to buy the best equipment from Russia. Then they will have the best from US, Russia and China.
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Jul 15, 2015 05:24pm
@eagle strike I am so happy to know that rampant poverty is not in Pakistan.
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Jul 15, 2015 05:25pm
@FAS India would be planning to spend $100 bn in next 10 years. Poverty reducing simultaneously
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Jul 15, 2015 05:29pm
@Blue Saffron Please read the news daily so you are better informed. India's foreign currency reserves exceed USD300 billion. So you can sit and dream about that default.
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Jul 15, 2015 05:33pm
Yeah buy fancy shamancy equipment and at the best catch only pigeons. Let them throw money down the drain if it gives the population even the slightest sense of security. Because according to their minister, Indians have lost faith and love in military and no wonder , after blunders like jupiter-venus drone, pegion, boat, camel incidents who in their rightful mind would feel protected by these want to be world power.
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Jul 15, 2015 05:54pm
Most of the people from pakistan thinks that India spending money only on weapon and they start suggesting that india should look after its poor people. I would like to inform you that india has already taken various steps to feed its poor people. I live in chhattisgarh state of india. Chhattisgarh government doing lots of things for its poor people. If you belong to BPL( Below poverty line) you get rice at cost of Rs. 1 per kg, Salt for free, wheat for Rs. 2/kg, Lentils for Rs. 5/kg and. You get free education for girls/boys in government school. School provides mid day meal free of cost to students. Minimum wages for labor is Rs 120. So even if you earn once in a month still you can feed your family. Its just a few example. There are various such scheme. I would like to inform you that India spend more than Rs 2 lakh crore (approx $33 billion) every year to just feed its poor people. Some of my Pakistani friend wont believe this but it is true.
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Jul 15, 2015 05:54pm
Thank you very much for raising your concern. I believe Pakistani government also providing such scheme to its poor people however we dont know about it because there is stupid border which separate us. Anybody from pakistan please let us know how and what your government is helping poor people.
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Jul 15, 2015 06:02pm
Where is India getting all this money from? They are not begging for aid but still spending this sort of money!
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Jul 15, 2015 06:12pm
@A Shah Thats very good question Mr. Shah. Recently we auctioned our coal block to private firm and got around Rs. 10 lakh crore(Approx $166 billion). We also auctioned or 2g and 3g spectrum which gave us around Rs 3 lakh crore( $50 billion) so this is how india is making money.
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Jul 15, 2015 06:39pm
Shame that a country where over 500 million people don't have toilets and struggle with poverty would waste billions on weapons! Where is common sense in India?
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Jul 15, 2015 06:59pm
india gave the world a glimpse through mars mission..and in software india proved itself and hence now 6 british satellites launched yesterday with mathematical calculus...WITH ALL THIS INDIA PLS PRODUCE MORE DOCTORS AND PHARMA COMPANIES AS YOU ARE THE PHARMA OF THE WORLD NOT WEAPONS
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Jul 15, 2015 07:21pm
Pakistan already has the P8 Orion aircraft in service.
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Jul 15, 2015 07:28pm
Is this a joke or what?
India should be spending the money on feeding its poor.
Put a few dinghys in the water and that should suffice for India.
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Jul 15, 2015 07:36pm
India can never have any meaningful defence as most of its borders are maritime. Anyone can drop a few mines and essentially blocade Indian waterways for a few million dollars.
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Jul 15, 2015 07:40pm
Now that I think about it, India is having a difficult time keeping its diesel submarines afloat that Russia gifted. So they think they have a better chance of keeping the planes vertical. But for what? That is the question. To fight the fish species in the ocean?
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Jul 15, 2015 07:41pm
I think they should spend this money on the health,education,rebuilding India. Waste of money. Making west rich.
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Jul 15, 2015 07:43pm
These planes are being leased from Boeing on guarantees provided by US EXIMP Bank. In other words more aid by Americans. India does not have the cash flow to fund this.
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Jul 15, 2015 07:50pm
Initially India believed in Panchshila and peaceful coexistence . It did not spend on defence, result was 1962. India learnt its lesson and since than India started believing in 'if you want peace be prepared for war', it is unfortunate that a few million will go hungry. But what to do when choice is between survival or going hungry? On the other hand Pakistan joined CEnto (1955)and seato (1954) ,while India was talking of Panchshila (Bandung Indonesia ). One wonders why our friends in Pakistan grudging India defending itself?
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Jul 15, 2015 07:50pm
Lets face it. Pakistan is no military match for India. India is too economically and militarily superior to Pakistan. Ultimately, India wants to get in an arms race with Pakistan as it is a race it knows it cannot lose.
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Jul 15, 2015 07:55pm
And the 428 air defense guns mean that India is preparing to strike inside Pakistan so when Pakistan retaliates these guns will be used to defend.
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Jul 15, 2015 08:08pm
Very bad news , with the aggressive govt of India, matter of time when these firepower will reign down on us, Gen Raheel please help us.
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Jul 15, 2015 08:12pm
If Indian Geography can be changed then the defense expenditure can only go one direction - Northward!
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Jul 15, 2015 08:16pm
@Vikas "India needs to upgrade their Defence forces at par with US forces"
Do you have any clue how much that would cost? USA spends more money of defense than India, Pakistan, China and Russia combined.
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Jul 15, 2015 08:19pm
India does not need these planes. Only prayers. Here is why. For India to maintain its current rate of poverty, which has resulted in famine and social ills like rapes/women bashing, it needs a breakeven GDP of 15%. India will never get there !! Agreed? Therefore, India is lagging behind about -ve 10% GDP !!!! We will never be able to alleviate poverty in India...EVER !!! Source: Wharton Econometrics
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Jul 15, 2015 08:33pm
@Blue Saffron you nailed it! India is on a path of self destruction and may not survive. Now that may be a good thing for Western nations economically.
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Jul 15, 2015 08:42pm
@Armagan Akram "Pakistan already has the P8 Orion aircraft in service." No. Pakistan has P3c orions. Right now, apart from US Navy, Indian Navy is the only country having P8. P3C is from Lockeed Martin, whereas P8 is from Boeing. Look up on their websites.
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Jul 15, 2015 08:45pm
@Kcik : "Spend money on weapons to kill while maintaining the largest slum in Asia probably the whole world."
The cost of buying a shanty in that slum is probably the same as that of a house in Pakistan.
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Jul 15, 2015 08:55pm
@hello-world;
'India has understood how important elephant tusk are. Sometimes you need to show and project some power.'
Don't forget that elephants are also hunted for their tusks.
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Jul 15, 2015 08:58pm
@hello-world;
Hello- 1/6th of the world, India's population is 1/6th of the world not 1/7th. Actually Pakistan's population is about 1/7th of India's.
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Jul 15, 2015 09:03pm
you can have world class roads and good infrastructure if you use that money for home, you never attacked another nation in 1000 years, please cut down on wasteful expenses, we can defend our self anyways which what we have right now, we need good roads, good infrastructure, automatically FDI will flow in the $ dollars
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Jul 15, 2015 11:06pm
@N : Yes, and keep you poor live in huts. Its inhuman for south Asian countries to enter into arm race and keep their population dirt poor.
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Jul 15, 2015 11:51pm
Just like the Shah of Iran, Modi wants to be the chokidar while the West is the policeman.
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Jul 15, 2015 11:57pm
India is living in old paradigm where might army is seen as an asset. On the contrary China and Pakistan are moving to strategic war games.
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Jul 16, 2015 12:08am
If India wants industry at home then India will need tool and die makers, machinists and mechanical engineers to open companies manufacturing steel presses, punch presses, drill presses, lathes, milling machines, sheet metal bending machines, grinding machines, band saws, and other smaller machine tools. Just as big investments as military purchases if the private sector money can be found. If these companies are to be successful they will need to expand sales internationally in competitive markets competing with countries such as Sweden, Germany, Italy, Britain, the US, France, Korea and Japan.
India will need machines to build machines, just as Pakistan would. Industry is not a world of hammers, anvils, chisels, scrap metal and two room workshops. South Asia can produce plastics but can it manufacture plastic injection mold machines?
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Jul 16, 2015 12:10am
This has nothing to do with Pakistan. Most of these P8s are kept at Andaman and Nicobar Islands (Campbell Bay airstrip). Boeing P8s are great submarine hunters and India wants to keep a close eye on the large fleet of Chinese subs in the Andaman Sea.
India is increasingly getting assertive with China in South China Sea as well as Indian ocean. India is way behind China when it comes to naval submarine capability.
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Jul 16, 2015 12:20am
@Harisingh;
'India is increasingly getting assertive with China in South China Sea as well as Indian ocean.'
That is just for domestic consumption. India is nothing but a source of cannon fodder for the West.
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Jul 16, 2015 01:04am
@Mustafa,
India sees itself as a 'power center' and not some vassal state to another power. India collects friends not enemies and only looks out for its own greater interest. It has mastered the art of being a friend without having to act like a conjoined twin (aka ally). It disagrees with its friends regularly and works with its adversaries all the time.
India refused its own troops for Iraqi invasion. India votes against US pharmaceutical interests at WTO and votes with China at UN all the time on climate change issues. It recently joined the Shanghai Group. India continued its relationship with Iran despite pressure from the west. India supported Russia throughout the Ukrainian crisis.
India has tried the appeasement and soft approach with China and now it is changing that approach.
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Jul 16, 2015 01:43am
@N ..and lose it all to Pakistan ANZA missile.
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Jul 16, 2015 01:45am
@Humza - India need to buy these weapons because people without common sense are living in neighboring country
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Jul 16, 2015 01:59am
Now that I think about it the greatest utility of these planes will be to monitor match fixings in IPL. Good thinking India
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Jul 16, 2015 03:08am
@Vikas .... The USA wants with cash Indians to fill the universities. India wants security from the USA. The US does not need India to secure it's shores.
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Jul 16, 2015 03:12am
@Vikas ...Indian soldiers do not measure up to Russian, Chinese or US soldiers. I've seen your airborne troops. They are cardboard stand ups.
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Jul 16, 2015 03:17am
@sher ... Second that!
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Jul 16, 2015 03:19am
@vishal ...It is not anywhere near 700 million, but it is more than 70 million.
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Jul 16, 2015 03:20am
@isro ,india ... It will be more than a few years.
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Jul 16, 2015 03:42am
@Humza...... Both India and Pakistan should experience all out war with each other to understand what most of the rest of the world already knows. All of you here are clueless. People always have to learn the hard way. The harder their heads, the greater the destruction to their countries. You have no idea.
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Jul 16, 2015 03:50am
@ramarabalee ... Calculus is mathematical?
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Jul 16, 2015 03:58am
@Blue Saffron .... I can release mines from underwater and destroy them from 100 meters in a small boat with a 7.62 millimeter rifle. At 100 meters all the shrapnel flies up and over your head and comes down 100 meters behind you. Piece of cake.
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Jul 16, 2015 04:04am
@Blue Saffron..u call india poor.fine but plzzzzz check GDP per capital of both countries(ind & pak)...
will ya
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Jul 16, 2015 04:15am
@sunil Verma super cuts see oppurtunity!
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Jul 16, 2015 05:36am
Math demonstrated and over complicated by some Indians and Pakistanis is hilarious. Let me help simply it. Indian population is 1.3 billion there fore $4.74 billion / 1.3 billion Indians is 3.64 Dollars = approximately 240 Rupees per Indian, easy ?
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Jul 16, 2015 06:57am
Zia says it's Peanuts.
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Jul 16, 2015 06:59am
The comments of people from both side of borders shows how ignorant they are about their own betterment. Perhaps this is the reason they are still continuing the legacy of poverty gifted by Britishers. Actions of their respective Govts are nothing but the reflection of that ignorance. And the irony is both feel that the spine less Govt. is the root of all problems.
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Jul 16, 2015 08:06am
@Blue Saffron Jealous!!!
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Jul 16, 2015 09:30am
I am afraid to say that out per capita is less than Bangladesh, India has higher than both of us. We need to fix our problems before lecturing others.
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Jul 16, 2015 09:35am
@Blue Saffron you remind me of Abbas Toronto, and make as much sense. Keep making stuff up
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Jul 16, 2015 11:57am
With economy growing at 8%, India can very well afford defense purchases. Also not to forget, India will become top 3 largest economy with 1/5th of humanity, thus security is most important.
Not to forget, these investment are also TOT and will promote industrial base for future economic development and self reliance.
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