India’s ₹858-Crore Defence Deal Shows How It Is Balancing Russia, the U.S., and Self-Reliance

India ₹858-Crore Defence Deals: What, When, and Why

Last week India secretly signed two defence contracts totalling ₹858 crore. Modern military standards consider them small, but the history behind them is worth noting. The former is the purchase of Tunguska air defence systems in Russia at the price of ₹445 crore. 

These machines are fitted with missiles and rapid firing guns and best suited in shooting down cheap drones which were indeed an issue last year in the regional conflict.

The second transaction ₹413 crore with Boeing India is maintenance of the P-8I surveillance planes of the Navy, and most importantly all the work remains within India.

Two Partners, One Strategy

There is nothing contradictory about purchasing Russian arms and at the same time having American planes serviced. It is a conscious decision not to get hooked to any relationship since it helps to take the best of both without necessarily being bound by it. 

Russia has been the oldest defence provider to India. Its quickest growing partner is the U.S. India would like to maintain both relationships and not be at the mercy of either.

The Bigger Picture

India is at the centre of the largest procurement cycle in its history with the government granting about 25 billion in military purchases within this very fiscal year alone. 

The manufacture within the country goals are escalating, the dependence on the imports is gradually declining and MRO jobs are gradually remaining at home.

Witness an increasing number of such deals in the future: foreign technology, Indian maintenance, selective local production. The course is apparent though the way may be complex.