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Monday, February 28, 2011

With an eye on China, India steps up defence spending

Chengdu J-20India increased annual defence spending by about 11.6 percent on Monday, aiming to overhaul the military to counter the rapidly growing capabilities of giant neighbour China.

The hefty increase suggests the government plans to move ahead with some of a slew of planned defence acquisitions, analysts said, including a $10.5 billion fighter jet contract, one of the world's largest on offer.

India, among a host of countries wary of China's economic and military heft, is also eyeing surveillance helicopters, transport aircraft and submarines to beef up defences in the air as well as in the Indian Ocean.

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