With the second-largest standing army in the world, India is the world’s fastest-growing economy. Being the supreme commander of the armed forces, the president of India manages the Ministry of Defense (MOD) and the Defense Acquisition Council (DAC). The Ministry of Defense (headed by the Minister of Defense) includes the Department of Defense, Department of Defense Research and Development, Department of Defense Production and Department of Ex-servicemen welfare. The Defense Acquisition Council (DAC), headed by Minister of Defense, is taken care of by its three boards Defense Production Boards, Defense Procurement Boards, and Defense Research and Development Board. The Defense function of the Indian government is taken care of by the Ministry of Defense. The Indian Armed forces can be primarily divided into four sub-sections, viz, the Army, Navy, Air Force and Defense agencies.
In the financial year 2019-2020, the Defense has been allocated a major share of 9% of the total budget. The government has allocated the US $61.96 bn (Rs.4,31,011 crore) to the Ministry of Defense (MOD). Out of this, Rs. 3,05,296 crore is allocated to the three armed forces and the rest Rs. 1,12,080 crore is for Defense pensioners and other expenses. Service-wise allocation of budget amounts to Rs 1,71,023 crore (56%) for Army, Navy Rs. 68,949 crore (23%), Air Force Rs. 45,368 crore (15%), DRDO Rs. 19,021 crore (6%), OFs 935 crore (0%). With this budget at hand, India is the largest importer of arms in the world wherein 60% of its total Defense requirements are imported. About 15% of the total import is by India, making it the third-largest Defense spender after the US and China. This makes Indian an attractive market for foreign Defense manufacturers. The ongoing DRDO projects of India are worth $7.3 billion and 2.30% of the GDP is spent on Defense.
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