India’s Defense Market: Obstacles to Modernization

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India budgeted US$17 billion in 2004/05 for military spending, in addition to a carry over of $7 billion from the previous budget. Nevertheless, India Monitor reports that the modernization of India's armed forces is still a way off as it struggles to shake off "bureaucratic bungling, political wrangling and the more than a sniff of scandal that has characterized arms deals in the past." The biggest issue, however, is more basic: decision paralysis. The slowness of decisions and approvals can be a major issue for companies wishing to penetrate the Indian defense market....

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