Tuesday, February 04, 2014

India Placing Numerous Military Procurements on Hold

With general elections expected before May, corruption scandals over high-profile defense deals, and a deflated rupee, Defense Minister A.K. Antony, who has cultivated an image of integrity, has taken a go-slow approach on vitally needed equipment projects.

The slowdown has taken hold as India is expected to spend approximately $100 billion on military modernization in the next 10 years, to boost its military capability as a hedge against neighboring rivals China and Pakistan (see pages 73-76). Defense officials are grumbling about the pace of upgrades given the gap between the country's security goals and its force strength.

“The minister's obsessive quest for an unblemished procurement process has delayed several programs, mainly the acquisition of fighter aircraft,” says a senior Indian defense official, adding that the country has underinvested in all kinds of military equipment over the last three decades.

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