India has increased its defense spending for the next year by 4.8% in real terms, to $13.54 billion. (The actual increase was 14.03%, but most of this went to cover inflation.) The most remarkable aspect of this increase is how small it is during a time of increased tensions. The military budget equals 2.54% of GNP; India estimates that China spends 3% and Pakistan 4%.--Stephen V Cole
