In 2013 the government scrapped a 8 million contract with AgustaWestland helicopters following allegations it was won through kickbacks.To erect safeguards against graft India ramped up its Army of bureaucrats dealing with weapons sales, with contracts becoming trapped in a paper maze.Deals are also complicated because India is determined to achieve its goal of being less dependent on foreign trade for its military equipment.Allegations of corruption have scuppered Indian defence deals as far back as 1987, when then Prime Minister Rajiv Gandhi’s government collapsed over charges of kickbacks paid to Indian officials by the Swedish group Bofors to clinch a .The country ranks 130 out of 189 on the World Bank’s Ease of Doing Business index — the worst of all G20 countries — and regulations vary capriciously across its 29 states, where even the same law can be interpreted in bafflingly different ways.“In recent years, the authorities have tried to clamp down on graft.”Eric Trappier, CEO of Dassault Aviation, has gained experience of India’s bargaining tactics in recent years.For example, one mooted deal was to have seen Dassault assemble 108 out of 126 fighter jets on Indian soil.But a series of corruption scandals have made India a challenging environment, with huge delays and a tough negotiation process.“The Indians insist on such deals, but without always having the means or the expertise to carry them out.India has signed a series of key defence deals under Prime Minister Narendra Modi as part of a 0 billion upgrade of its Soviet-era military hardware, making it an attractive proposition for arms exporters.9 billion euros (.The increasing assertiveness of its giant neighbour China as well as its simmering rivalry with Pakistan have increased its need to upgrade its military.But all these precautions do not prevent old demons resurfacing.

The less-than-supersonic sale of French Rafale fighter jets to India has highlighted the obstacles facing foreign arms firms seeking to do business with the world’s biggest weapons importer. They are known for it,” said Isabelle Saint-Mezard, a specialist in South Asian strategic issues at the University of Paris.shunyao.But Dassault will be contractually bound to reinvest nearly half of the value of the deal in India, an obligation known as the offset clause. As a result, officials in charge of issuing contracts fear exposing themselves to suspicion of corruption and are reluctant to engage,” said St.But the final windfall was much less than had been hoped for by the French.“The Indians always conduct very tough negotiations.Fears of further corruption meant that “the modernisation of the armed forces stalled,” said Gulshan Luthra of the Institute for Defence Studies and Analyses in New Delhi.“India is a school of patience,” he said.Faced with an urgent need to modernise its military, the Modi government finally opted for the direct sale of 36 ready-to-fly Rafale jets, which will be manufactured in France.After nearly a decade of discussions and setbacks India signed a deal on September 23 to acquire 36 Rafale fighter jets for 7.For a contract to succeed, “it usually takes strong political will at the highest level of the state,” she added.3-billion artillery deal. “We are talking high-tech and the Indian industry does not have the sophistication to absorb such offsets.com/product/silicone-kitchen-tools/silicone-foldable-colander/">Silicone foldable colander manufacturers as it seeks to bolster its military against an increasingly assertive China.That signals many potential contracts for foreign arms suppliers — despite the obstacles.But the French refused to assume responsibility for all the planes that were to be built in India.8 billion) .

As a result, suppliers are reluctant to embark on this China Silicone foldable bowl factory sort of agreement,” said St.The smallest comment on an arms deal required from a government department can delay a case for several months. Mezard.“They have all the major weapons suppliers knocking at their door, so they are well positioned to do so.”India has signed several big-ticket deals since Hindu nationalist Modi took power in 2014. end-of Location: India, Delhi, New Delhi.“The offset rules are very complicated and opaque,” said Rahul Bedi, a Jane’s Defence Weekly analyst.