India's military, comprising the Indian Army, Navy, Air Force, and auxiliary forces such as the Paramilitary Forces, the Coast Guard, and the Strategic Forces Command, is the third largest in the world. The President of India is the supreme commander of the Indian Armed Forces. The official Indian defence budget for 2011 stands at US$36.03 billion (or 1.83% of GDP). According to a 2008 SIPRI report, India's annual military expenditure in terms of purchasing power stood at US$72.7 billion,India has also become the world's largest arms importer, receiving 9% of all international arms transfers during the period from 2006–2010. Defence contractors, such as the Defence Research and Development Organisation (DRDO) and Hindustan Aeronautics Limited (HAL), oversee indigenous development of sophisticated arms and military equipment, including ballistic missiles, fighter aircraft and main battle tanks, in order to reduce India's dependence on foreign imports.
China's nuclear test of 1964 as well as its repeated threats to intervene in support of Pakistan in the 1965 war convinced India to develop nuclear weapons of its own.India conducted its first nuclear weapons test in 1974 and further underground testing in 1998. Despite criticism and military sanctions, India has signed neither theComprehensive Nuclear-Test-Ban Treaty (CTBT) nor the NPT, considering both to be flawed and discriminatory. India maintains a "no first use" nuclear policy and is developing a nuclear triad capability as a part of its "minimum credible deterrence" doctrine. It is also developing a ballistic missile defence shield and, in collaboration with Russia, a fifth generation fighter jet. Other major indigenous military development projects include Vikrant class aircraft carriers and Arihantclass nuclear submarines.