New Indian Regime Will Sign Long-Delayed Deals

Discussion in 'Strategic Forces' started by AVERAGE INDIAN, May 30, 2014.



    Sep 22, 2012
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    Detroit MI
    A lack of decision-making on large Indian defense procurement deals in the past two years is expected to end with the swearing-in of the new government headed by Prime Minister Narendra Modi. Changes in procurement and offset policies are also expected.

    Major projects that are in the final stage of processing and require a signature for conclusion include the 126-aircraft medium multi-role combat aircraft (MMRCA) won by Dassault Aviation’s Rafale; the Airbus A330 multi-role tanker transport (MRTT); and naval multi-role helicopters. While these are likely to be signed this financial year, a crash crunch could hold other decisions until next year. To fast-track some projects, the Ministry of Defence has proposed an approximately 25-percent hike in its 2014-15 budget from the $36 billion allocated last year. More than half of that is allocated to salaries and maintenance.

    A Ministry of Commerce official told AIN that the Foreign Direct Investment (FDI) limit will be raised from 26 percent to 49 percent. “This should bring in investment for manufacturing defense products as we plan to increase the export base,” he added.

    “Given Modi’s success in Gujarat where he was chief minister for 12 years, it is clear that the focus will now be on manufacturing and export,” the commerce official continued. In a recent interview on a popular television channel, Modi said, “We should involve Indian corporations in private-public partnerships for defense manufacturing.”

    At a summit held in his state last year, Modi said, “I think that those investors, industrialists who are active in defense manufacturing, should be roped in. We should also turn ourselves toward small and medium enterprises, which can supply small defense parts.”

    India’s new finance minister, Arun Jaitley, who has also been given the defense portfolio, said a full-time defense minister would be named “in a couple of weeks…it’s an important ministry and needs urgent decisions,” he added. Jaitley said that he would spend a “reasonable amount of time” at the MoD.

    New Indian Regime Will Sign Long-Delayed Deals | Aviation International News
    abhi_the _gr8_maratha likes this.
  3. sob

    sob Moderator Moderator

    May 4, 2009
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    New Delhi
    Great now some action on this front. We need this FDI in India for our forces.
  4. Hari Sud

    Hari Sud Senior Member Senior Member

    Mar 31, 2012
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    First Modi has to find the money to sign all the deals. There is none.

    Most of the tax money together with corruption is lost in welfare doles, in useless secular aids like Haj visits, subsidies in almost everything, supporting money loosing enterprises like all public sector undertakings etc. In last two years two deals like subsidized food grain and jobs for everybody in the rural areas are a major drain. These are Sonia Gandhis pet projects and each cost $20 billion a year.

    These useless subsidies which never benefited the poor but often siphoned off by officials or smart arm twisters for their own purpose has become a drag on the economy.

    These cannot be removed by a single stroke of a pen. But removed progressively as economy moves in the right direction and more tax dollar is collected. Then only all those defence deals in the pipeline are to be signed.

    India has been importing close to $10 billion worth of arms every year for the five or six years. The problem here is that if tanks were purchased the ammunition was not or major capital purchases was made then the spare parts never arrived as these were not part of the deal or one component arrived but it's second component supplier was under business ban in India. Like this there were many deals which could not be fully implemented. This was a complete fault of the previous Defence Minister A K Anthony. He was too honest but never in full control of its Babus.

    To sign all these deals over next three years, in addition to $10 billion present capital budget for the armed forces for imports an additional $10 billion is needed. That kind of money has to be found.

    For this the Indian Economy has to accelerate to about 9% every year. The welfare state has to be dismantled. Mr. Modi has all the right ideas. Let us see how soon he can implement them.
    Last edited: May 31, 2014
  5. Kaalapani

    Kaalapani Tihar Jail Banned

    Apr 15, 2014
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    Please rename Regime with govt .Sick of this word regime.
    sesha_maruthi27 likes this.

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