The Stockholm International Peace Research Institute (SIPRI), renowned for documenting global arms trade, recently released a report reflecting the prominent involvement of three Indian companies in the world’s top 100 arms sales of 2020. Hindustan Aeronautics Limited (HAL), Indian Ordnance Factories, and Bharat Electronics Limited (BEL) are the Indian organizations recognized in this report, replicating their position in the top 100 from 2019.
About Stockholm International Peace Research Institute (SIPRI)
Established in 1966, SIPRI is an independent international institute primarily focusing on research pertaining to conflict, armaments, arms control, and disarmament. Hailing from Stockholm, SIPRI provides data, analysis, and recommendations based on open sources to policymakers, researchers, media, and the intrigued public.
Key Points of the Report
According to this year’s report, the United States has the highest number of companies in the top 100 worldwide. The arms sales by these firms amounted to USD 285 billion, marking an increase of 1.9% compared to 2019. China holds the second position with 13%, while the United Kingdom follows next at 7.1%. Russia and France came in fourth and fifth, accounting for 5% and 4.7% respectively of the total arms sales by the top 100 firms.
Indian Companies in Focus
Out of the three enlisted Indian firms, the Indian Ordnance Factories ranked 60th with USD 1.9 billion in sales, which is an upward shift of 0.2% from last year. HAL takes the 42nd spot with USD 2.97 billion, advancing by 1.5% from 2019. BEL, on the other hand, moved ahead by 4% compared to 2019, securing the 66th rank with USD 1.63 billion in sales. Overall, the global share of India’s arms sales was 1.2% in 2020. These firms achieved an aggregated arms sales total of USD 6.5 billion, which was 1.7% higher than the previous year and accounted for 1.2% of the top 100’s overall sales.
Factors Contributing to India’s Increased Share in Arms Sales
India’s climb in the arms trade is partly due to its domestic procurement strategy, which has acted as a shield against the negative economic implications brought on by the pandemic. In 2020, the Indian government declared a phased ban on imports for over a hundred different types of military equipment. This move was aimed at supporting the country’s domestic companies and promoting self-reliance in arms production.