Sweden's SIPRI Institute has just published its yearbook on the global arms trade. It emerges that India is now the world's largest importer of arms with 9% of the total. China fell back to 2nd place although it has been steadily increasing its defense budget. The decline in the Chinese share of imports reflects Beijing's success in building a domestic arms production industry, with ever growing sophistication.
With many countries downsizing their military establishment and consequently their arms purchases, India finds itself in a buyers' market. India also benefits from the fact that, unlike China, which still faces a US and European arms embargo (that some European states want to rescind) since the 1989 Tiananmen Sq. massacre , everyone is free to sell to India.
The major bauble is a multibillion contract for 126 fighter jets that has the French, Americans, Swedes, Russians and European consortia in a bidding war for the prize. In more impoverished days, India was a major arms client of the Soviet Union because in the days of the Sino Soviet conflict, Moscow viewed India as a counterweight to China and as a leader of the neutral block. India received arms on generous terms from the Russians. But India now has the cash to purchase from whomever it wishes.
As in the case of China, India will exact concessions from the winning bidder in the form of technology transfers. This is planned in the eventual expectation that India can emerge as a major arms manufacturer in her own right. So gather ye defense contracts while ye may.
Traditionally India's main rival has been Pakistan. However, as China has moved from a strictly land power to a power that can project its military strength outwards, including shipping lanes in the Indian Ocean, India casts a wary eye on the Chinese defense budget. China has reciprocated by taking note of India's accelerated defense spending and the SIPRI report was duly noted in the Chinese media.
India is now a visiting member of the UN Security Council, but it would like to become a permanent member of the Council. The request has received the support of 4 of the 5 permanent members-- the one exception being China, that still wants to preserve its status as the only Asian permanent Council member. When India effectively becomes a stronger military power than the United Kingdom and France, it will have bolstered its claim for a permanent seat.