THE SIPRI TOP 100 ARMS PRODUCING AND MILITARY SERVICES COMPANIES, 2018

THE SIPRI TOP 100 ARMS
Question: As per report by Stockholm International Peace Research Institute (SIPRI) how much of sale of arms and military services was done by the sector’s largest 100 companies?
(a) $420 billion
(b) $320 billion
(c) $520 billion
(d) $620 billion
Answer: (a)
Related facts:
  • On 9 December 2019, Stockholm International Peace Research Institute (SIPRI) released its report on Global arms industry rankings.
  • As per report, Sales of arms and military services by the sector’s largest 100 companies (excluding those in China) totaled $420 billion in 2018, marking an increase of 4.6 per cent compared with the previous year.
  • The database excludes Chinese companies due to the lack of data to make a reliable estimate.
  • Global Arms industry ranking highlights that eighty of the 100 top arms producers in 2018 were based in the USA, Europe and Russia. Of the remaining 20, 6 were based in Japan, 3 in Israel, India and South Korea, respectively, 2 in Turkey and 1 each in Australia, Canada and Singapore.

United States-The Dominator:

  • The report figures that total arms sales of US companies in the ranking amounted to $246 billion, equivalent to 59 per cent of all arms sales by the Top 100. This is an increase of 7.2 per cent compared with 2017.
  • For the first time since 2002, the top five spots in the ranking are held exclusively by arms companies based in the United States: Lockheed Martin, Boeing, Northrop Grumman, Raytheon and General Dynamics.
  • Russia appeared second on the list of arms production while the UK was third in the rankings with 8.6 percent and 8.4 percent of shares respectively.

India Specific Findings:

  • The combined arms sales of the three Indian arms companies listed in the Top 100 were $5.9 billion in 2018—a decrease of 6.9 per cent on 2017.
  • The decline is mainly a result of Indian Ordnance Factory’s significant 27 per cent drop in arms sales.
  • In the Top-100 arms-producing and military services companies rankings, India’s Hindustan Aeronautics was ranked 38th with arms sale of USD 2740 mn in 2018.
  • Among other two Indian companies in Top-100, Indian Ordnance Factories is ranked 56th and Bharat Electronics is at 62nd spot.

Links:

https://www.sipri.org/media/press-release/2019/global-arms-industry-rankings-sales-46-cent-worldwide-and-us-companies-dominate-top-5

https://www.sipri.org/sites/default/files/2019-12/1912_fs_top_100_2018_0.pdf

https://www.thehindubusinessline.com/economy/arms-sales-of-top-indian-defence-firms-drop-by-69-per-cent-sipri-report/article30268399.ece