India, China, Russia, and Brazil will become the world's richest nations over the next 40 years, as their defense procurement and military budgets soar over the period, offering enormous growth opportunities for diverse defense industries, predicts market researcher Frost & Sullivan in London.
The economies India, China, Russia, and Brazil will develop rapidly, reaching their collective peak by 2050, Frost & Sullivan analysts predict. Defense budgets and procurement in India, China, Russia, and Brazil accounted for 12.6 percent of the total global defense expenditure in 2008 because of their focus onforce modernization, and to counter the persistent threat ofglobal terrorism.
Frost & Sullivan makes these predictions in a report entitled An Executive Analysis of the Defense Budget and Procurement in the BRIC Countries. BRIC stands for Brazil, Russia, India, and China.
These countries account for nearly 13 percent of global defense expenditures, with the United States contributing more than 40 percent and Europe with about 25 percent, Frost & Sullivan says. India, China, Russia, and Brazil hold huge market potential for defense equipment -- especially Brazil and India.
All four countries have nuclear capability and are active in space research. The combined numbers of soldiers in the BRIC countries matches the total number of fighting forces in the rest of the world.
"With massive numbers of troops to maintain, defense budget allocations are naturally high and expected to escalate faster than in the rest of the world," says Harish Balasubramanian a research analysts at Frost & Sullivan. "Modernization and troop upgrades alone will involve mammoth budgets, making these four countries growth hot spots for defense industries."
Posts
