India's Defence Economy: Checkpoint 1

Quick checkpoint - five questions on the defence budget, pensions, imports, self-reliance and defence firms.

Question 1 of 5 Roughly what share of GDP does India spend on defence?

0.2 percent About 2 percent About 10 percent About 25 percent

Defence spending has been around 2 percent of GDP.

Question 2 of 5 Why are defence pensions so large?

Soldiers retire young and draw pensions for decades Soldiers never retire Pensions are paid by foreign countries There are no pensions

Early retirement plus long lives raises costs.

Question 3 of 5 Which country has historically been India's largest arms supplier?

Brazil Russia Japan Canada

Russia and the Soviet Union supplied much of India's equipment.

Question 4 of 5 What are positive indigenisation lists?

Items the military must buy from domestic suppliers Lists of banned countries Lists of soldiers Export targets

They push procurement towards Indian firms.

Question 5 of 5 What happened to India's ordnance factories in 2021?

They were closed They were corporatised into seven companies They were sold abroad They became schools

Corporatisation aims to improve accountability and efficiency.

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