Analysis of Worldwide Military Expenditure

1. 1

2. 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
3
ANALYSIS

4. REGION-WISE ANALYSIS
4
0
100
200
300
400
500
600
700
800
2000 2001 2002 2003 2004 2005
Americas
Europe
Asia and
Oceania
Middle East
Africa
0
100
200
300
400
500
600
700
800
1988 1989 1990 1991 1992 1993
Europe
Americas
Asia and
Oceania
Middle East
Africa

5. 5
REGION-WISE ANALYSIS CONTD…
0
100
200
300
400
500
600
700
800
900
2012 2013 2014 2015
Americas
Europe
Asia and
Oceania
Middle East
Africa
0
100
200
300
400
500
600
700
800
900
2006 2007 2008 2009 2010 2011
Americas
Europe
Asia and Oceania
Middle East
Africa
Region wise Analysis.xlsx

6. 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. 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. 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. 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. 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. 11
GOVERNMENT SPENDING
Design 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

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0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
1 2 3 4 5 6
BRICS - Military Spending as % of Govt Spending
Brazil USSR/Russia India China, P.R. BRICS Average
BRICS COUNTRIES

13. 13
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
1 2 3 4 5 6
G8 - Military Spending as % of Govt Spending
Canada France Germany
Italy Japan USSR/Russia
USA UK G8 Average
G8 COUNTRIES

14. 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. 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 graphically
Using sensitivity analysis calculate the per capita
military expenditure of INDIA in 2016
BRICS_Sourav Pattanaik.xlsx

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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. 17
G-8 & BRICS COUNTRIES
Data given:
Military expenditure data
Using descriptive statistics we have analyzed the
military expenditure data of BRICS and G8
Using 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. 18
BRICS COUNTRIES
y = 0.348x + 22215
R² = 0.7287
0
10000
20000
30000
40000
50000
60000
0 10000 20000 30000 40000 50000 60000 70000 80000 90000 100000
MilitaryExpenditure
GDP
INDIA :GDP vs MILITARY EXPENDITURE LINEAR REGRESSION

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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.

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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.

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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.

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SIPRI
• SIPRI-Stockholm International Peace Research Institute
• www.sipri.org
Database
• SIPRI Military Expenditure Database for Countries from
1988-2015
World
Bank
• GDP data of countries(1988-2015)
• Population data of countries(1988-2015)
Deloitte
• Manufacturing-2016-global-aerospace and defense-sector-
outlook
DATA SOURCES

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