War brightens the fortunes for arms companies, arms worth $632 billion sold in a year

New Delhi: Whether it is the war between Russia-Ukraine or the war between Israel-Palestine or the growing tension in the Indo-Pacific region, the world may have panicked due to these, but arms manufacturing companies have made a lot of money. We are not saying this, but the figures presented in the new report of the Stockholm International Peace Research Institute indicate that due to war and tension, there has been a rapid sale of weapons, which has led to a huge jump in the revenue of the companies manufacturing them. According to the report, amid these conflicts, companies sold arms worth $632 billion in the year 2023 itself.

Data of 100 arms companies collected
The Stockholm International Peace Research Institute has released a new report on the world’s top-100 arms manufacturing companies. According to the data given in it, the revenue of global arms companies has increased by 4.2% on an annual basis in the year 2023 and has increased to $ 632 billion. This increase in particular reflects the strong sale of weapons amid other conflicts including the war in Russia-Ukraine and increasing tensions in the Indo-Pacific region.

America on top in arms production
The report also highlights defense production and expenditure among major global players, especially the United States, China and India. The US has maintained its position as a global leader in arms production and 41 of the top-100 companies here have contributed $ 317 billion, which is around 50% of the total global revenue of arms companies. There has been an increase of 2.5 percent in this compared to the year 2022.

Whether it is supplying weapons to Ukraine or increased military spending by NATO allies, American arms producers have benefited from this. US companies such as Lockheed Martin, Raytheon and Northrop Grumman have been at the forefront supplying advanced weapons such as missiles, drones and air defense systems.

China has been the second largest contributor to global arms revenue. 9 companies in the top-100 in the country have added $103 billion in revenue to it. However, this pace of arms production and sales in China has declined by 0.7% year-on-year and is the lowest since 2019. The reason for this is cited as a slow economy and other challenges. Overall, despite its economic challenges, China’s defense business remains an integral part of its strategic ambitions.

India’s arms revenue also increased
Talking about India, the report states that India’s arms revenue reached $6.7 billion in 2023, which shows an increase of 5.8% compared to the previous year. Three Indian companies Hindustan Aeronautics Limited, Bharat Electronics Limited and Bharat Dynamics Limited are included in the SIPRI Top 100. This surge in revenue from arms production is attributed to India’s Make in India initiative. The government has focused on indigenisation of weapon systems such as fighter jets, missiles and naval ships to reduce its dependence on imports.

Sharp increase in arms revenue here
This report based on the year 2023 states that the Russia-Ukraine war has proved to be a major factor in boosting global arms production. Defense firms in Europe, the US and Turkey have increased their production strongly to meet the growing demand. The report presents data from some specific companies and countries.

• Türkiye’s Baykar: Baykar, known for its armed drones used extensively in Ukraine, saw its arms income grow 25% to $1.9 billion in 2023, with 90% of this coming from exports.
• Taiwan’s NCSIST: Taiwan’s NCSIST is the only Taiwanese company in the top-100, which has recorded a 27% increase in revenue to $ 3.2 billion, which points to increased defense investment amid growing tensions with China. Apart from this, Britain’s Nuclear Weapons Establishment has achieved 16% more revenue, which reached $ 2.2 billion.