SIPRI Current Affairs - 2019

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Trends in International Arms Transfers 2018 Report: Key Facts

The Stockholm International Peace Research Institute (SIPRI) has released the Trends in International Arms Transfers 2018 Report. The Key observations made in the report include:

  • Russia’s arms export to India decreased by a whopping 42 per cent between 2014-18 and 2009-2013.
  • Russia accounted for 58 per cent of total Indian arms imports in 2014-2018, compared with 76 per cent in 2009-2013.
  • India’s import of arms decreased by 24 per cent between 2009-2013 and 2014-2018 which was in line with India’s strategic programme Make in India- Defence to reduce India’s dependence on foreign arms.
  • The decrease in imports was also attributed to delays in deliveries of arms produced under license from foreign suppliers, such as combat aircraft ordered from Russia in 2001 and submarines ordered from France in 2008.
  • The decrease in India’s arms import is significant given since the volume of international transfers of major arms in 2014-18 was 7.8 per cent higher than in 2009-13 and 23 per cent higher than in 2004-2008.
  • India was the world’s second largest importer of major arms in 2014-18 and accounted for 9.5 per cent of the global total.
  • Israel, the USA and France have increased their arms exports to India in 2014-18.
  • Five largest Arm exporters in 2014-18 were the United States, Russia, France, Germany and China.
  • Five largest Arm importers were Saudi Arabia, India, Egypt, Australia and Algeria.
  • The US was the top arms exporter in 2014-18 and 2009-13. The US’s exports of major arms grew by 29 per cent between the two periods and its share of total global exports rose from 30 per cent to 36 per cent.
  • The gap between the USA and Russia which is the second largest exporter has continued to widen. The US exports of major arms in 2009-13 were 12 per cent higher than those of Russia, whereas in 2014-18 they were 75 per cent higher. Russian exports of major arms decreased by 17 per cent between the same periods.
  • The decrease in the Russian exports was partly attributed to general reductions in Indian and Venezuelan arms imports, two countries that have been among the main recipients of Russian arms exports in previous years.
  • India remained the chief importer of Russian arms in 2014-18. But Russian arms exports to India fell by 42 per cent between 2014-18 and 2009-13. Arms exports to Venezuela, which was the fifth largest recipient of Russian arms in 2009-13, decreased by 96 per cent between 2014-18 and 2009-13.
  • The arms imports of Pakistan was decreased by 39 per cent between 2009-13 and 2014-18. The US has become increasingly reluctant to provide military aid or sell arms to Pakistan.
  • US arms exports to Pakistan fell by 81 per cent between 2009-13 and 2014-18. Pakistan has instead turned to other suppliers.

Stockholm International Peace Research Institute

Stockholm International Peace Research Institute (SIPRI) established in 1966 is an independent international institute dedicated to research into conflict, armaments, arms control and disarmament. Based in Stockholm the Institute provides data, analysis and recommendations, based on open sources, to policymakers, researchers, media and the interested public.

Four Indian PSUs feature in world’s top 100 arms producers: SIPRI Report

The recently released rankings by Stockholm International Peace Research Institute (SIPRI) have placed four Indian Public Sector Undertakings among world’s top 100 arms producers. These companies are as follows:

  1. Indian Ordnance Factories (37th Rank)
  2. Hindustan Aeronautics (38th Rank)
  3. Bharat Electronics (64th Rank)
  4. Bharat Dynamics (94th rank)

Key Facts

This was for the first time that four Indian companies have ranked in top 100 arms producers companies of world. These four companies have sold arms worth USD 7.52 Billion in 2017.

About SIPRI

Established in 1966, the Stockholm International Peace Research Institute (SIPRI) is a Swedish think tank dedicated to research into conflict, armaments, arms control and disarmament. SIPRI provides data, analysis and recommendations, based on open sources, to policymakers, researchers, media and the interested public.

India’s share in Global Arms Sale

India’s current share in total global arms sales stands at less than 2%. This indicates that India has been a weak player in international markets. Successive government have tried to turn India into a global defence manufacturing hub and take multiple policy steps to involve private sector in defense production. However, most of such measures have been on papers only till now.

World’s top arms producers

The global arms market is dominated by US companies which have a whopping 57% of the market share, followed by Russia (9.5%), United Kingdom (9%) and France (5.3%). As of 2017, Lockheed Martin is world’s largest arms with arms sales of $ 44.9 billion. Boeing is the second largest arms producer company in the world.