NEWS ANALYSIS

Presented By:
Satyam Raghuvanshi (139)

CHINA 3rd LARGEST DEFENCE

EXPORTER
China also has fewer political complexes
than rivals which means it will sell to
anyone.
Rapid expansion inBeijings military
budgetin recent years and advanced
technology have made Chinese weapons
more competitive allowing China to sell
more.
In terms of defence imports-in view of US
rising interference and regional tension,
China has increased its defence import by
10% which is mainly contributed by
Russia.

2013 (US $
billion)

2014 (US $
billion)

USA (16.43)

USA (19.95)

Russia (15.32)

Russia (17.37)

Germany (3.97)

China (3.21)

France (3.40)

Germany (3.08)

China (2.83)

France (2.76)

Stockholm International Peace

Research Institute (SIPRI)

TOP 5 DEFENCE EXPORTERS

COUNTRIES

TOTAL
DEFENCE
EXPORT VALUE
(US $ billion)

PERCENTAGE
OF GLOBAL
ARM EXPORTS

MAJOR
IMPORTING
COUNTRIES

USA

19.95

31

Saudi Arabia,
UAE, Australia,
India

Russia

17.37

27

India, China,
Algeria

China

3.21

Pakistan,
Bangladesh,
Myanmar

Germany

3.08

4.8

Greece, Israel,
USA

LARGEST ARMS INDUSTRY

COMPANIES
Rank

Company

Country

Arms sales
(US$
billion)
(2013/2014)

Boeing

United States

28.59

Lockheed
Martin

United States

25.27

Raytheon

United States

23.70

SAUDI ARABIA BIGGEST

DEFENCE IMPORTER
As per American research company IHS (Information
Handling Services) Saudi Arabia has toppled India to
become the worlds top defence importer in 2014.
2013

2014

India ($5.9 billion)

Saudi Arabia ($6.4 billion)

Saudi Arabia ($5.4 billion)

India ($5.57 billion)

UAE ($2.2 billion)

China ($2.6 billion)

Taiwan ($1.7 billion)

UAE ($2.21 billion)

China ($1.5 billion)

Taiwan ($2.16 billion)

WORLDS BIGGEST ARM

IMPORTERS

During last 5 years period India imported arm exports worth

$16.72 billion. This roughly constitute to 15% of worlds total
defence import followed by China (5%) and Pakistan (4%).

SAUDI ARABIA
Saudi Arabia: Record
figure has been driven by
unparalleled demand from
the emerging economies
for military aircraft and an
escalation of regional
tensions in the Middle
East.
Top 10 countries as per defence budget
2015 (in US $)

INDIA
Continued abject failure to build a robust defence
industrial base.

Indian forces are still grappling with critical

shortages in fighter jets, submarines, helicopters,
howitzers, night-fighting capabilities and the like.
Lack of participation from private industries.

YEAR

RAN
K

SPENDIN
G

% of
GDP

As compared to other countries India spends very

2012

$47.7
billion

2.5

2013

$47.4
billion

2.5

2014

$45.2
billion

1.81

2015

$38 billion

1.75

less on its yearly defence budget.

Decrease spending of defence budget.

The Rupees steady slide against the US dollar to
Rs 62 to a dollar has eroded its purchasing power
considerably. Annual inflation in the international
prices of weapons, ammunition and defense
equipment is generally between 12 to 15 per cent.

SURGE IN POWER SECTOR

DEVELOPMENTS
Government plans to setup 25 solar power parks in

Gujarat, AP, UP, Meghalaya, Rajasthan.

US firms to build 20, 000 MW solar capacity in India.
Karnataka, AP keen to host Russian nuclear reactors.
Power grid plans to invest Rs 30,000 crore in transmission.
Tamil Naidu eyes over 20, 000 MW of power generation
target.

INDIAS ELECTRICITY
PRODUCTION
Theelectricity sector in

Indiahad an installed
capacity of 258.701GWas
of end January 2015.

WORLD POWER PRODUCTION

India became the world's
third largest producer of
electricity in the year 2013
with 4.8% global share in
electricity generation.

COUNTRY

ELECTRICITY
PRODUCTION
(GW)

China

564.95

United States

426.04

India

258.70

Japan

108.81

Russia

106.93

INDIAS POWER SUPPLY

POSITION

CHALLENGES
If current average transmission and distribution average losses
remain same (32%), India needs to add about135 GWof power
generation capacity, before 2017, to satisfy the projected demand
after losses.
Of the 1.4 billion people of the world who have no access to
electricity, India accounts for over 300 million.
The International Energy Agency estimates India will add between
600 GW to 1,200 GW of additional new power generation capacity
before 2050. The technologies and fuel sources India adopts, as it
adds this electricity generation capacity, may make significant impact
to global resource usage and environmental issues.

PROBLEMS
Subsidies provided by government have depleted the cash reserves of state-run
electricity-distribution system. This has financially crippled the distribution network,
and its ability to pay for power to meet the demand.

Non- payment of electricity bills.

Shortage of fuels
Theft of power
High number of ecological, environmental and rehabilitation obligations.
Traditional fuel combustion (800 million people still use it) is the primary source of
indoor air pollution in India, causes between 300,000 to 400,000 deaths per year and
other chronic health issues.

India's nuclear power generation potential has been stymied by political activism since
the Fukushima disaster in Japan.

GOVERNMENT EFFORTS
UMPP projects- According to thePower Finance Corporation,
16 UMPPs are envisioned.
The proposed doubling of green cess on coal from Rs 100 per
tonne to Rs 200.
Target of 1,75,000MW renewable energy capacity by 2022.
Solar power is to have the lion's share of the renewable energy
target at 1,00,000MW, followed by 60,000MW of wind energy,
10,000MW biomass and 5,000MW of small hydro projects of up
to 25MW each.

THANK YOU