No question of scaling down defence expenditure
India will continue with its arms acquisition programmes and defence preparedness despite the economic recession, Defence Minister A.K. Antony said here on Wednesday.
“There is no question of scaling down our defence expenditure, which is 2.5 percent of our GDP (gross domestic product) or compromise with our (arms) acquisition programmes despite the economic recession,”Antony said at the seventh edition of Aero India 2009 international air show here.
Claiming that India was among the fastest expanding aerospace markets in the world, Antony said state-run defence behemoth Hindustan Aeronautics Ltd (HAL) had evolved into an integrated aerospace organisation.
“India has emerged as an attractive market and a key outsourcing hub for global aerospace firms due to low-cost, skilled engineers, good organisations, software and technology,”Antony said at the inaugural show of the five-day event.
Expressing confidence that the biennial event would provide ample opportunities to domestic and overseas players to explore the business potential in the aerospace and aviation sector, the minister said the defence industry was opened up to 100 percent participation for the Indian private sector and up to 26 percent for foreign direct investment.