About half of India’s offset obligations across a set of 57 contracts worth $13.52 billion have resulted in either penalties or the threat of them, hampering the ability of foreign defense companies to do business in the country.
Russia has been the largest arms supplier to India since the early 1970s. Today, 60% of India’s military hardware inventory is from Russia or the former Soviet Union and the bulk of India’s license-based defense manufacturing comes from Russia.
India announced its new defense budget Tuesday that will see $13.84 billion go toward promoting self-reliance among local businesses and reducing the country’s import dependency under its $22.26 billion fund for acquisitions of new weapons and military platforms.
The Indian Navy is unlikely to meet its goal of having a 175-ship fleet in the next five years due to a lack of funds and the government’s preference to award contracts to state-owned shipyards over private businesses, service officials have told Defense News.
The nighttime user trial of the Agni-V ICBM was conducted by India’s Strategic Forces Command, which is responsible for managing nuclear and strategic weapons from the APJ Abdul Kalam Island in Odisha.
A $2.5 billion contract is to be signed with Airbus next month, under which the original equipment manufacturer will directly supply 16 military aircraft, and the remaining 40 will be manufactured in India.