Where did India get the money to buy weapons?

All countries in the world use foreign exchange reserves to import goods, including weapons, and India is no exception. The money it uses to buy weapons also comes from its own foreign exchange reserves, and India is not short of money. As of February 7, 2020, according to the data of the Reserve Bank of India, India's foreign exchange reserves reached US$ 473 billion, ranking seventh in the world. But India gives the world the impression that its infrastructure is backward, and a large number of slums and hungry people beg. Because India has a large population and a large gap between the rich and the poor, it seems that the country is still very backward and poor. We need to understand that a big gap between the rich and the poor and a country without money are two different things. ?

In 20 19, India's total GDP reached 2.94 trillion US dollars, surpassing Britain and France to become the sixth largest economy in the world. India's GDP growth rate is above 5%, which is the fastest except China. The total foreign exchange reserves are about $450 billion. Because India's military R&D and production level are backward, the performance and quality of its own weapons can't meet the needs of the army, so India buys weapons directly from other countries. India is? The world's largest importer of weapons? Arms imports account for about 12% of the world. Moreover, national defense weapons and equipment are universal cards. From many NATO countries to Russia, Israel and even the United States, almost all of the world's major arms powers have sold Indian equipment, and India often buys weapons by installment, with few one-time payments.

So where does India's foreign exchange reserves come from? The most profitable industries in India are finance and IT, followed by energy, automobile, food and medicine. Everyone is familiar with Indian it software and medicines. However, due to various reasons, there is a deficit in export trade. India is not an industrial country. Although the population is large, the education level and population quality of industrial workers required for industrialization are low, and the demographic dividend is wasted. Many industries can't compete with other countries, lack natural oil resources needed for industrialization, and can only rely on imports for a long time. In 20 18, India's trade deficit was1874.5 billion USD.

As the growth of India's economic data has been widely concerned, many foreign capitals that have taken a fancy to India's future economic development potential have poured in and invested in factories in India, so India has accumulated a large amount of foreign exchange reserves. In particular, India also has an important source of foreign exchange, that is, remittances from Indian expatriates. According to the statistics of the World Bank, a large number of Indian immigrants send money to their relatives in China every year. In just 20 16, India's total remittance income reached $62.7 billion, ranking first in the world, and growing at an annual rate of 5%. Secondly, the appreciation of Indian central bank's foreign investment leads to the increase of foreign exchange reserves, and finally, borrowing money. By the end of 2065438+September 2009, India's foreign debt was $65438 +0.4 trillion, and 20% of its fiscal revenue was used to repay the interest on the foreign debt every year.