Defence Economics is an emotive subject. Its protagonists are merchants of death; it leads to war and great human misery, it uses global resources which could otherwise be utilized for more humanitarian purposes. The world today gas taken a new turn as the threat it terrorism, globalization, increasing competition among the various countries of the world. In this changing scenario there are various pros and cons which are required to keep in mind specially the economic matter is concerned. In view of all the changes the countries of the world have been very particular about the defence budget to meet the threat of terrorism and Nuclear war and sustaining their path of economic development. Hence the economics of defence strategy in crucial in a proper cost benefit analysis of the defence spending. "We need to know that we are spending before we can evaluate 'value for money'. The book finds its comprehensive treatment about the varied aspects of defence economics in broader perspective.