India multiplies defence allies as indigenisation lags
Thursday, February 4, 2016
Subject
India's defence sector.
Significance
In February 2015, Prime Minister Narendra Modi's administration set the goal of having 70% of India's defence supplies manufactured domestically by 2020 -- reversing the extant 30:70 ratio of domestically procured equipment to imports -- and of encouraging foreign defence manufacturers to induct India into their global supply chain. A year on, progress is limited.
Impacts
- Indian firms will not become major arms trade competitors for at least a decade.
- UK and German firms will probably continue to lag their US, French and Spanish counterparts in India's defence market.
- Russian dominance of the Indian market will fade, due to India's needs and Russia's shortcomings.
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