India has emerged as the third largest purchaser of US arms with contracts worth $4.5 billion last year alone as US weapons sales rose to $34.8 billion in fiscal 2011, according to a Pentagon report.

The Defence Security Cooperation Agency, the Pentagon agency that oversees foreign arms sales, said sales in the fiscal that ended Sep 30 topped $30 billion for the fourth consecutive year after reaching $31.6 billion in fiscal 2010.