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28 pc hike in Indian defence budget

NEW DELHI: Indian Finance Minister Yashwant Sinha announced a 28-percent increase in defence spending to $13.5 billion for the fiscal year beginning April 1, as he unveiled the annual budget in parliament on Tuesday.

Sinha said that the defence allocation would be raised by Rs 130 billion ($3 billion) to Rs 586 billion.

"This represents the largest ever increase in the defence budget in any single year", Sinha said, adding "more will be provided whenever needed".

India's military establishment had pressured the government to substantially increase defence spending in the budget, arguing that the Kashmir conflict had exposed a dangerous lack of modern technology and weaponry. AFP