The long-term budget allocation clearly shows the defence budget is likely to increase at a much faster pace compared to GDP growth over the next 10 years, reaching 3%-4% of GDP. This is still small compared to 5% of GDP being targeted by NATO countries. However, one should not be pulled into the euphoria of growth and should be very focused on the growth vs valuation question as an investor,” said Dr Vikas Gupta, CEO & Chief Investment Strategist at OmniScience Capital.
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