India may not have the funds to seal the deal with Dassault Aviation to purchase $12 billion Rafale fighter planes, according to an Air Force source.
While India plans to boost hike defense spending by almost 8 percent, defense analysts and military officers say it falls short of expectations and isn't enough to buy fresh weaponry.
India will spend US $40.4 billion on defense in the April 1 2015-March 31 2016 financial year, according to the Feb. 28 proposal to Parliament.
That's an increase of 7.74 percent over the previous year. The previous year's budget went up 12.4 percent.
Finance Minister Arun Jaitley gave no additional funds in the "Capital Account Head" of the budget proposals, which is earmarked to buy fresh weapons. The budget included the same amount as last year: $15.5 billion.
06/03/15 Vivek Raghuvanshi/DefenseNews
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While India plans to boost hike defense spending by almost 8 percent, defense analysts and military officers say it falls short of expectations and isn't enough to buy fresh weaponry.
India will spend US $40.4 billion on defense in the April 1 2015-March 31 2016 financial year, according to the Feb. 28 proposal to Parliament.
That's an increase of 7.74 percent over the previous year. The previous year's budget went up 12.4 percent.
Finance Minister Arun Jaitley gave no additional funds in the "Capital Account Head" of the budget proposals, which is earmarked to buy fresh weapons. The budget included the same amount as last year: $15.5 billion.
06/03/15 Vivek Raghuvanshi/DefenseNews
