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Russia Tries To Arrest Losses In Indian Defense Market

Mr.Wick

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NEW DELHI — Russia is drawing up plans to claw its way back to the top of the Indian defense market, which is supplemented by the U.S. and other European suppliers.

Russia was at one time the biggest arms supplier to India and has been a reliable vendor since the Cold War era. But due to several commercial issues including overpricing, Russia rapidly lost the defense pie in the South Asian nation. In 2011, India was the world’s largest recipient of arms, accounting for 10% of global arms imports.

Russian Deputy Prime Minister Dmitry Rogozin, during his visit to New Delhi on July 17, advocated for the joint development of defense equipment with India that could be sold to other countries.

“We wants to move from basic trade to joint development projects with India in defense,” Rogozin says.

During his talk with India authorities in New Delhi, Rogozin expressed keen interest in joint ventures for the production of cargo and passenger aircraft.

“The BrahMos missile system is a shining example of this type of cooperation. Joint development of the Fifth-Generation Fighter and the Multirole Transport Aircraft, as well as the licensed production in India of Su-30 aircraft and T-90 tanks, are other examples of flagship cooperation programs that are currently under way in this area,” an Indian defense ministry official says.

India has also asked Russia to start inducting the 290-km-range BrahMos supersonic cruise missiles into its naval fleet. The two sides formed a joint venture to produce the supersonic cruise missile in 1998, and since then all three wings of the Indian armed forces have ordered BrahMos for their inventory. But the Russian side has yet to do so.

“Several issues . . . continue to affect the India-Russia defense relationship,” the official says. “There have been repeated delays in Russia implementing major weapon orders, including for the aircraft carrier, Admiral Gorshkov. Russia has also tended to raise costs midway through the execution of agreed-upon commitments. Roadblocks have also emerged for the transfer of technology and the uninterrupted supply of defense spares.”

Over the past 12 months, Russian arms manufacturers have faced a string of setbacks in India. Last year, Russia’s MiG-35 fighter lost India’s Medium Multirole Combat Aircraft (MMRCA) competition to Dassault’s Rafale. The $15 billion program is replacing the aging Russian MiG-21 fighter jets currently used by the Indian air force.

Other losers in the competition were the Lockheed Martin F-16IN Super Viper and Boeing F/A-18E/F Super Hornet, the Eurofighter Typhoon and the Saab JAS-39NG Gripen.

Defense Minister A.K. Antony said after the winner was declared that the country’s defense acquisition policy was guided by professional and not political considerations. “India’s defense purchases are not propelled by political considerations and all vendors will get a level playing field,” Antony said.

The Russian Mi-28N Night Hunter also lost a tender for 22 attack helicopters for the Indian military to Boeing’s AH-64D Apache.

Nonetheless, analysts say that given the two countries’ legacy of defense cooperation and ongoing projects, Russia will remain India’s major defense partner for the foreseeable future. However, in view of the increased competition for the Indian defense market, joint development and production of new weapon systems is likely to become a crucial factor in sustaining Indo-Russian cooperation in the coming years.

Russia Tries To Arrest Losses In Indian Defense Market
 

trinity

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Russia is playing games. As it continues to loose focus on the big pic, the US will bully its way into a dominant position.
 

joekrish

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Russia is playing games. As it continues to loose focus on the big pic, the US will bully its way into a dominant position.
I doubt that, as long as the US hesitates to transfer tech the Russians will hold the trump in the case of important deals.
 

trinity

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I doubt that, as long as the US hesitates to transfer tech the Russians will hold the trump in the case of important deals.

Look at the other angle. Russia has been supplying China with better tech with better agreements. Russia may be an ally to INdia but there is definitely a difference in perception. The US hesitation is going to stop soon, as recently Senators have been pushing and urging the Pentagon to engage India closer, specifically targeting military procurement. In the long run, its a win win. The US can learn a lot from India regarding Diplomacy where the US has lately been less than stellar delaing with 2nd and 3rd world nations.
 

xyxmt

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So US will give her technology to India in return they will get lessons in Diplomacy...Win win for both!!

Diplomacy is very easy when it only involves lip service
 

Fazlu

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Its actually a smart move. Russians are looking to make themselves 'indispensable' to India by forming a symbiotic relationship with our industries.

Its win-win especially considering---we can't get major ToT from the US without writing off our sovereignty.

Look at the other angle. Russia has been supplying China with better tech with better agreements.
Never happened you silly maoist man :)
 

Alchemy

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Look at the other angle. Russia has been supplying China with better tech with better agreements
Look what you are saying is history , Russia or any other sensible country in this world will not like to throw a boulder on its own foot ... All countries now realise that its futile to give any technology to China since china reverse engineers it , pirates it and makes cheap replicas of those Hi tech gadgets and sells them as if their own ...

things have changed , Russia trusts India more and thats why is willing to do JVs with Indian defence companies and come up with world class products ... Russian defense companies need money , Indian defense companies need world class technology , a win win situation for both !!
US or Europe is good to diversify , but Russia will remain our eternal partner in terms of defense trade .

Long live Indo-Russian friendship :cheers:
 

Mr.Wick

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Look what you are saying is history , Russia or any other sensible country in this world will not like to throw a boulder on its own foot ... All countries now realise that its futile to give any technology to China since china reverse engineers it , pirates it and makes cheap replicas of those Hi tech gadgets and sells them as if their own ...

things have changed , Russia trusts India more and thats why is willing to do JVs with Indian defence companies and come up with world class products ... Russian defense companies need money , Indian defense companies need world class technology , a win win situation for both !!
US or Europe is good to diversify , but Russia will remain our eternal partner in terms of defense trade .

Long live Indo-Russian friendship :cheers:
Nope, it isn't the reverse engineering.You never really know, the Communists might turn the same tech against the Russians.
 

Tshering22

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It is essential that Kremlin understands our sensitivity to price. We pay in dollars and earn in INRs. Simply hiking defence prices just like that will hurt us as their customers and naturally we will move to countries that don't do this kind of practice when signing a contract.

If Russia has to retain its position in a powerful customer's market, it has to understand our sensitivity. Friends is good, but there has to be professionalism as well.

Never happened you silly maoist man :)
Ignore the troll. :)
 

Sergi

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Good news :D
Delays, cost variations and spare supply are major issues
Russia should have done these things a lot before still not late.
USA is only friend of "her interests" nothing less and nothing more. So relying on USA for defence needs is :D
 

Alchemy

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It is essential that Kremlin understands our sensitivity to price. We pay in dollars and earn in INRs. Simply hiking defence prices just like that will hurt us as their customers and naturally we will move to countries that don't do this kind of practice when signing a contract.

If Russia has to retain its position in a powerful customer's market, it has to understand our sensitivity. Friends is good, but there has to be professionalism as well.
I think we are too harsh on Russians at times, when it comes to bargaining defense deals , however not so much when it comes to defense deals with US and European companies ... We expect too much from them compared to the Boeings and Dassaults probably because our relationship with Russians runs soo deep .

Just see how much Russians have contributed to us over the past 60 yrs and remember their help during 1971
 

tvsram1992

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Unfortunately Russian contribution will further decrease as we move towards self reliance , How ever we cant rule out JVs with Russia .
 

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