SIPRI Report 2020: Know all about SIPRI and India's position as the 2nd largest arms importer

As per the latest report of SIPRI, the sales of arms and military services by the sector’s largest 25 companies has been released. Stockholm International Peace Research Institute, the largest companies have a geographically diverse international presence
Created On: Dec 10, 2020 13:05 IST
Modified On: Dec 10, 2020 16:00 IST
SIPRI Report 2020
SIPRI Report 2020

About SIPRI

SIPRI stands for Stockholm International Peace Research Institute. It is situated in the capital of Sweden, Stockholm. It provides the data analysis and recommendations regarding armed conflict, military expenditure and arms trade. It also makes suggestions for disarmament and arms control. 

SIPRI Report 2020: Analysis

  1. As per the latest report of SIPRI, the sales of arms and military services by the sector’s largest 25 companies totalled the US $361 billion in 2019 which is almost 8.5 per cent more than in 2018. 
  2. According to new data released today by the Stockholm International Peace Research Institute (SIPRI), the largest companies have a geographically diverse international presence. 
  3. The report also suggests US companies still dominate the market while the Middle East represented in top 25 for the first time.
  4. Lockheed Martin, Boeing, Northrop Grumman, Raytheon and General Dynamics together registered for $166 billion in annual arms sales. All in all, 12 US companies have appeared in the top 25 for 2019, accounting for 61 per cent of the arms sales of the 25 topmost companies.
  5. EDGE, based in the United Arab Emirates (UAE), ranked at number 22 and accounted for 1.3 per cent of total arms sales of the top 25. 
  6. The top 25 list also includes four Chinese organizations. Aviation Industry Corporation of China (AVIC; ranked 6th), China Electronics Technology Group Corporation (CETC; ranked 8th) and China North Industries Group Corporation (NORINCO; ranked 9th) are among the top 10 list. 
  7. Russian sales on the other hand have dropped as per the SIPRI report 2020. The revenues of the two Russian companies namely, Almaz-Antey and United Shipbuilding have decreased between 2018 and 2019, by $634 million. 
  8. After the USA, China accounted for the second-largest share of 2019 arms sales. 
  9. The largest percentage increase in annual arms sales was reported by the French company Dassault Aviation Group which was the supplier of Rafaele to India. 
  10. The report says that mapping has shown that Global South is becoming integrated into the global arms industry. India has become the second-largest importer of arms. There are many reasons why arms companies might want to establish themselves overseas, including better access to growing markets, collaborative weapon programmes, or policies in the host countries tying arms purchases to technology transfers.

What is SIPRI Arms Industry Database?

SIPRI Arms Industry Database was created in the year 1989. Earlier, it excluded data for companies in countries in Eastern Europe and the Soviet Union. The latest version includes data from 2015 which also contains data for companies in China and Russia.

What are the Arms Sales?

As per SIPRI's definition, the ‘Arms sales’ are defined as sales of military goods and services to military customers domestically and abroad. Unless otherwise specified, all changes are expressed in real terms.

SIPRI: Historical Background

It was in the year 1964, when the Swedish Prime Minister, Tage Erlander had put forward the idea of establishing a peace research institute that would commemorate Sweden's 150 years of unbroken peace. A Swedish Royal Commission headed by Alva Myrdal proposed in its 1966 report that such an institute must be established. The Stockholm International Peace Research Institute (SIPRI), was established then to contribute to 'the understanding of the preconditions for a stable peace and for peaceful solutions of international conflicts'. The Commission also recommended that research be concentrated on armaments, their limitation and reduction, and arms control. 

Arms Amendment Bill 2019: Everything you need to know

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