1

Analysis of Worldwide Military Expenditure

Group-07Alabhya PranayAprameya BholAvinash SahuSourav PattanaikSudhansu Sekhar BihariVishvadeep Pundir

2

World• Total global Aerospace & Defense sector

revenues are estimated to grow 3.0 percent in 2016 as per Deloitte Report

USA• 12 defense companies out of the top 20

are from USA with the leader being Lockheed Martin

CHINA

• China became the third largest exporter of major arms in 2010-2014

• Defense budget of China for 2015 was $143 billion

INDIA• India’s allotted defense budget for 2016 is

$40 billion rise of 7percent from last year

FACTS

3

Region-wise Analysis

Year-wise Analysis

Country-Wise Analysis

Government Spending & India’s Forecast

BRICS and G8 Analysis

ANALYSIS

4

REGION-WISE ANALYSIS

2000 2001 2002 2003 2004 20050

100

200

300

400

500

600

700

800

Americas

Europe

Asia and Oceania

Middle East

Africa

1988 1989 1990 1991 1992 19930

100

200

300

400

500

600

700

800

Europe

Americas

Asia and Oceania

Middle East

Africa

5

REGION-WISE ANALYSIS CONTD…

2012 2013 2014 20150

100

200

300

400

500

600

700

800

900

Americas

Europe

Asia and Oceania

Middle East

Africa

2006 2007 2008 2009 2010 20110

100

200

300

400

500

600

700

800

900

AmericasEuropeAsia and OceaniaMiddle EastAfrica

Region wise Analysis.xlsx

6

FINDINGS OF ABOVE ANALYSIS …

We observe the following things from the above analysis:

• Up to 1990 Europe had the maximum expenditure in military sector.

• Post 1990 America has been the maximum spending country in military

sector.

• Africa has always been the lowest in military expenditure.

7

YEAR-WISE ANALYSIS

Design a model to find the number of countries who have spent on military expenditure in a particular year and as per the specified range using countif and pie charts.

Region wise Analysis.xlsx

8

FINDINGS OF ABOVE ANALYSIS …

We observe the following things from the above analysis:

• In the year 1994, maximum countries (110 out of 173) had their military

expenditure within 3000 million dollars & no countries had spent above

50000 million dollars.

• But in the present scenario i.e. 2015, there are 5 countries spending in the

range 50000 to 100000 million dollars and total of 14 countries within the

range of 15000 to 100000 million dollars.

9

COUNTRY-WISE ANALYSIS

Design a model to compare the military expenditure data of two countries in a particular year and highlight the significant value using conditional formatting. SIPRI-Milex-data-1988-2015 Avinash.xlsx

10

FINDINGS OF ABOVE ANALYSIS …

We observe the following things from the above analysis:

• In case an unstructured historical data is provided, it is difficult for a person

to go through it and perform comparison. This can be avoided by designing

a menu driven format to access the data from main sheet.

11

GOVERNMENT SPENDINGDesign a model to compare the military expenditure as a percentage of government spending of BRICS and G-8 countries and their respective averages using lookup and conditional formatting. SIPRI-Milex-data-1988-2015_Alabhya.xlsx

12

1 2 3 4 5 60.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

BRICS - Military Spending as % of Govt Spending

Brazil USSR/Russia IndiaChina, P.R. Series5 BRICS Average

BRICS COUNTRIES

13

1 2 3 4 5 60.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00% G8 - Military Spending as % of Govt Spending

Canada France Germany Italy Japan USSR/RussiaUSA UK G8 Average

G8 COUNTRIES

14

FINDINGS OF ABOVE ANALYSIS …

We observe the following things from the above analysis:

• Among the BRICS countries, the military expenditure as a percentage of

government spending of USSR and India is above the BRICS average and

China, Brazil and South Africa lie below the average.

• Among the G8 countries, the military expenditure as a percentage of

government spending of USA and USSR is above the G8 average and the

rest of the 6 countries lie below the G8 average.

15

INDIA’S FORECAST

Data given: Population growth rate and Military expenditure

data Develop a model to forecast the military expenditure of INDIA from 2006-2015 and compare the same with actual data graphicallyUsing sensitivity analysis calculate the per capita military expenditure of INDIA in 2016 BRICS_Sourav Pattanaik.xlsx

16

FINDINGS OF ABOVE ANALYSIS …

We observe the following things from the above analysis:

• Except for Brazil and South Africa among the BRICS countries, a vast

difference was observed between the forecast and actual data available for

all other countries. This was because of the assumption that all soci-

economic and political and other factors were assumed constant. However,

this difference can be eliminated by assigning weights to certain factors

and considering them in the analysis.

• The sensitivity analysis along with forecast can be used to perform

prediction of future data from historical data available.

17

G-8 & BRICS COUNTRIES

Data given: Military expenditure data

Using descriptive statistics we have analyzed the military expenditure data of BRICS and G8Using Regression model we have analyzed the per capita military expenditure and population of G8 countries between 2005-2009 SIPRI-Milex-data-1988-2015_Vishvadeep Pundir.xlsx

18

BRICS COUNTRIES

40000 50000 60000 70000 80000 90000 1000000

10000

20000

30000

40000

50000

60000

f(x) = 0.348049622789029 x + 22215.4879565145R² = 0.728653927846395

INDIA :GDP vs MILITARY EXPENDITURE LINEAR REGRESSION

GDP

Mili

tary

Exp

endi

ture

19

FINDINGS OF ABOVE ANALYSIS …

We observe the following things from the above analysis:

• We have performed a descriptive analysis of the military expenditure data

of BRICS countries from which various calculations like mean expenditure,

standard deviation, maximum and minimum expenditure, etc. can be

found out.

• The regression analysis was performed and later on a linear regression

model was established between India’s GDP and Military Expenditure. This

can be implemented further to study all such possible relation between

various other parameters with respect to the military expenditure.

20

CONCLUSION

Applications:• Compare regions in the world on basis of

military expenditure and bring out the major players in military services.

• To see a trend in military expenditure year-wise.• To compare military expenditure data of any

two countries without going through the unstructured historical data.

21

CONCLUSION

Applications:• Compare the role of government in military

expenditure of different countries.• Forecast and compare the military expenditure

with historical data and predict data for a particular country.

• Analyze the relation between GDP and Military expenditure through regression analysis.

22

SIPRI

• SIPRI-Stockholm International Peace Research Institute• www.sipri.org

Database

• SIPRI Military Expenditure Database for Countries from 1988-2015

WorldBank

• GDP data of countries(1988-2015)• Population data of countries(1988-2015)

Deloitte• Manufacturing-2016-global-aerospace and defense-sector-

outlook

DATA SOURCES

23

Thank You