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| Dassault Rafale (MMRCA) Fighter |
By VIVEK RAGHUVANSHI and AARON MEHTA
BANGALORE, India — International defense giants and domestic companies that want to do business with India face an overloaded bureaucracy, complex defense procedures and a government with protectionist policies designed to favor state-owned entities.
But they’re still willing to do business.
Executives for both the Indian and foreign defense industries attending last week’s Aero India conference in Bangalore acknowledged slight government reforms in the defense sector, but insist that the problems of the past decade persist.
They say timelines for awarding contracts are unknown, offset guidelines are muddled and extremely complicated trial periods often lead to projects that are canceled without explanation.
Still, industry will put up with the problems because India plans to spend around $100 billion to procure roughly 400 fighters and 200 helicopters in the next 10 years. But whether the Indian government will adhere to the strict timelines and provide clarity for its defense contracts remains a major challenge for everyone who wants a piece of the pie.
Read the full story at DefenseNews