The United States is the largest seller of arms in the world, while its ally Saudi Arabia leads the pack of buyers, according to an International Institute of Strategic Studies report.

India, said the report, spent US $900 million on weapons.

"The US holds a 40.3 per cent market share in arms sales, raking in $10.241 billion from sales in 2002," the report -- The Military Balance 2003-2004 -- said.

Saudi Arabia spent an estimated $5.2 billion in 2002 buying weapons, despite having reduced arms purchases from the 1995-1998 period, the report said.

India and the United Arab Emirates each spent $900 million on weapons.

Britain, the world's second-largest arms seller, sold $4.7 billion worth of weapons in 2002 and has a 18.5 per cent market share. It is followed by Russia ($3.1 billion and 12.2 per cent market share) and France ($1.8 billion and 7.1 per cent market share).

China comes fifth down the list selling $800 million worth of arms in 2002 (3.1 per cent market share), followed by Ukraine at $600 million, Germany at $500 million (two per cent market share) and Italy at $400 million (1.6 per cent market share).

Israel, the world's ninth largest arms seller, brought in $300 million from sales in 2002, followed by Brazil at $200 million.

Agencies