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 Indian government imposed a fine on French company Dassault Aviation last month over delays in offset obligations that were part of a 2016 deal for 36 Rafale fighters, Defense News has learned.
An MoD official said the suspension was lifted on the grounds of operational urgency and because of a lack of available alternatives for procuring 127mm naval guns and heavy-weight torpedoes.
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.
India's private sector finds itself relegated to the role of subcontractor to the public sector — a mind set that could hinder the country's economic goals.