The Asia Times had an article yesterday concerning defense-related fraud in the previous regime of the government of India. This has led Congress to call for an investigation. India is in the process of spending $15 billion in modernization of its armed forces. Any investigation could slow down the already lengthy process of defense procurement.
"Arms manufacturers from the US, Italy, France, Russia, South Africa and Israel, with active backing from their respective governments, are lining up to ink deals with India for the supply of military equipment ranging from fighter aircraft to submarines, jets, radars and more. However, New Delhi's latest move to ask the Central Bureau of Investigation (CBI) to probe arms deals signed by the previous Bharatiya Janata Party (BJP)-led government during and after the 1999 Kargil border conflict with Pakistan may throw a further wrench into the process of arms purchasing, which is quite protracted in any case."
The defense scandal may affect purchase contracts with the French, Dutch and South Africans.
" One immediate casualty has been the further deferring of the purchase of French Scorpene submarines. The Indian navy was looking to ink the $3.2 billion deal finally, which has been under negotiation since 2002, until politics took over. The problem is made more acute by the fact that a part of India's existing fleet comprising Soviet Foxtrots and Kilo-class submarines are to be decommissioned in the next five years.
The CBI has also been asked to look into all contracts with Denel, a South African firm accused of paying kickbacks to influence a deal to sell anti-materiel rifles to the Indian army. The contract for supply of bunker-buster rifles was clinched with the previous BJP government two years ago and part of the arms shipments have already been made. Denel has denied any foul play and issued a statement saying that the deal went through the proper channels and was above board.
It can be recalled that the allegations of kickbacks from Sweden's Bofors firm to clinch the sale of 410 howitzers to the Indian army in 1986 in a deal worth $1.3 billion ultimately led to Rajiv Gandhi being ousted as prime minister. Though the Bofors guns played a key role in the Kargil conflict, the scandal created major delays in the purchase of modern weapons further on, with Defense Ministry bureaucrats and military officials chary of clearing arms purchases for apprehension of later allegations of bribery.
Prime Minister Manmohan Singh has already gone on record to say that the 'defense scandals' will impact the arms purchase. 'We have to make every effort to ensure that these recent events do not create a disincentive for taking timely decisions regarding armaments [purchases],' he said."
It will be interesting to see what effect, if any, this has on the possibility of a large US defense purchase by India. Since the US offer is new and not associated with past corruption, it may now be a more palatable offer to the Indians and one that can move ahead faster than a French arms purchase.
Prior DEL posts on Indian defense purchases of US military hardware and of US-Indian foreign relations can be found here, here and here.
Maybe it's just me, and maybe I'm just naive, but I've always thought that India was our natural ally. That we have been at odds is more to do with accidents of politics and geography than anything else.
Thus I am glad to read about the sale of Boeing 777 and 787 aircraft you discussed in a previous post.
Also, I'd be glad if they bought more arms from us; for the business, to counter China, and to solidify ties between us.
Back to my earlier point. We're both capitalist democracies, and both of us can trace our heritage to Great Britain. Economic ties increase yearly; the "call center" in India is becoming ubiquitous, everyone talks about them.
The Cold War swept everything in its path. India felt the need to take the "non-aligned" path. Today, with the War on Terror, due to geography Pakistan is more useful to us. Kind of a shame things have worked out this way.
What do you think about my little pet theory (I've got a lot of them, that's why I blog!)?
Posted by: The Redhunter | May 02, 2005 at 06:51 PM