World is buying arms again after 5 years, SIPRI says first rise in sales since 2010

The global arms industry is rising again. According to the Stockholm International Peace Research Institute (SIPRI), the sales of arms registered increase in 2016 for the first time since 2010.

The world's largest arms-producing and military services companies - called the SIPRI Top 100 - registered sales of arms and military services at USD 374.8 billion in 2016. This is almost 2 per cent (1.9) higher compared to 2015 data.

The arms sale figure for 2016 is shows an increase of about 38 per cent since 2002. This is also the first year of growth in arms sales reported by SIPRI Top 100 after five consecutive years of decline.

US LEADS THE RACE

The American companies are the main beneficiary of spike in arms sale across the world. With a combined total of USD 217.2 billion, arms sales of US companies grew by 4.0 per cent in 2016. The Lockheed Martin, the world's largest arms producer, registered a sharp increase in sales by 10.7 per cent in 2016.

The sharp growth in arms sales reported by the American companies is attributed to US military operations overseas and acquisitions of large weapon systems by other countries have driven this rise. The USA's share in over arms sale last year stood at around 58 per cent (57.9).

MIXED TRENDS IN EUROPE

Relatively rich western European companies reported stable arms sales while Russia showed declining growth.

Britain's decision to withdraw from the European Union seems to have had no impact on arms sale in the region. The British companies reported 2 per cent increase in sales of arms while more variations were seen in other major exporters of weapons including France, Italy and Germany.

Germany registered an increase of 6.6 per cent in sale of weapons primarily on the account of sales of armoured vehicle producer Krauss-Maffei Wegmann and land systems producer Rheinmetall.

Russian firms rose by 3.8 per cent with USD 26.6 billion arms sale in 2016. Russia accounts for over seven per cent of total arms sale on the planet, according to the SIPRI analysis.

SOUTH KOREA EMERGES, JAPAN FALLS IN ASIA

The SIPRI has placed South Korea among the emerging producers, which also covers Indian and Brazilian companies. But, the SIPRI says that South Korea has dominated the emerging producers block with 20.6 per cent increase in sales of arms last year.

On the other hand, Japan reported negative increase of -6.4 per cent. Japan is clubbed with Australia, Israel, Poland, Singapore and Ukraine under other established producers' category by the SIPRI.

Decline in Japan's arms sale volume is chiefly attributed to sharp falls in sales of Mitsubishi Heavy, Kawasaki Heavy Industries and Mitsubishi Electric Corporation. Interestingly, there is no specific mention of China in the SIPRI report. China has a sizeable market in Asia and Africa.