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Home World Business

India approves $13.1 billion defence deals

byCustoms Today Report
27/10/2014
in World Business
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NEW DELHI: India has given the go-ahead for defence projects worth billions of dollars to modernise the country’s military. This comes amid a recent stand-off with Chinese troops and cross-border skirmishes with Pakistan.

The Defence Acquisition Council of India has cleared long-standing projects worth US$13.1 billion, with a lion’s share going to the Indian navy. Among the deals approved, the most significant decision is to build six next-generation submarines in India, rather than sourcing them from overseas.

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The army has also decided to procure at least 8,000 anti-tank guided missiles from Israel for special covert operations, and 12 more Dornier surveillance aircraft with enhanced sensors.

Sambit Patra, spokesperson for Bharatiya Janata Party, said: “This government is extremely serious about defence deals in India. We have seen as to how the previous dispensation of Congress was not at all serious about defence. The most important part in this deal is that submarines would be made in India. This is in keeping with what the prime minister had called for – ‘Made in India’.”

India is the largest importer of defence equipment in the world. Critics said the previous Congress-led government was slow in clearing the projects to improve India’s defence capabilities.

But some analysts have expressed their concern over the abilities of the Indian defence manufacturers to develop such technologies.

“Building the latest types of submarines which have air independent propulsion and various other features is a very high bar in terms of technologies and manufacturing practices, said defence analyst Uday Bhaskar. Now, India has not yet demonstrated that ability. So the entire ecosystem for manufacturing a submarine of this order and ensuring that you have delivered in the schedule that has been agreed upon is a big challenge.”

Tags: India defenceIndia defence deal

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