India's defense budget took a 17 percent jump to around $40 billion for 2012-13, partly because of major acquisition plans, according to UPI. "This allocation is based on present needs and any further requirement will be met," Finance Minister Pranab Mukherjee told Parliament. Around 18 percent of the $40 billion will be for capital expenditure -- buying new equipment up to March 2013, The Times of India reported. The premier purchase for the military is that of the medium multi-role combat aircraft contract for 126 Rafale fighter jets from French manufacturer Dassault, a deal worth between $10 billion-$20 billion over several years. Dassault edged its main rival EADS with its Eurofighter Typhoon last month as preferred supplier and the final contract -- India's largest single defense deal -- is expected to be signed by the summer. The tender, which was issued in August 2007, also was contested by Boeing with its F/A-18E/F Super Hornet, Lockheed Martin's F-16, the Russian-made MiG-35 and the Gripen from Swedish firm Saab. Despite the boost to spending, the defense budget "remains 1.9 percent of the projected gross domestic product for 2012-13," The Times said. The increase is "much less than the 3 percent demanded by the armed forces. China recently hiked its defense budget to over $100 billion," The Times report noted. The Indian air force waits for 75 Swiss Pilatus PC-7 turbo-prop aircraft to train new pilots. India also is upgrading 51 Mirage 2000 fighter jets. The army, too, "is desperate to acquire 145 M-777 ultra-light howitzers from the United States for $647 million," The Times said.
