India plans major military buildup

Estimates of the increase range up to 35 percent as India prepares to bolster its forces for new battles with neighboring Pakistan.

The National Institute of Public Finance and Policy estimates the defense budget increase at $4.65 billion. The defense budget last year, before Pakistan-aligned insurgents attacked Indian troops in Kargil, was reported at $10.7 billion.

The institute said the new Indian defense budget would now be $15.34 billion.

The Indian Defense Ministry has not formally requested an increase in spending. But the institute said "It is almost certain that there will be additional demand for defense funding in the post-Kargil era."

Defense sources said the Indian government is holding negotiations with France, Britain, South Africa, Israel and Russia for new weapons systems and upgrades. They said New Dehli apparently intends to sign agreements over the next year.

The sources said the Indian military and Defense Ministry have lobbied vigorously for more money. Last week, India's naval chief announced his service was seeking to equip warships with missiles.

Earlier this week India completed a $300 million defense deal with Russia for two Sukhoi-30 K combat aircraft. On Friday, India Abroad News Service reported that Moscow delivered the fighters to New Delhi even before the state-of-the-art jets had been inducted into the Russian air force.

Moscow will also supply India with 40 Su-30 MKI aircraft, a modified version of the Su-30, considered to be the world's best jet fighter.

Though the Sukhoi-30 MKI aircraft is not capable of launching attacks on ground targets, Russia is installing equipment to make it a multi- purpose warplane for India.

A French company Sextant Avionics received the contract to replace the radar in the aircraft with more powerful ones. In addition, K-58M and K- 31 air-to-ground, and R-77 air-to-air missiles are being installed in the Su-30 MKI.

China and Vietnam are also interested in buying the SU-30 K jets.