THE PRIVATIZATION OF INDIA'S DEFENSE SECTOR
Extraordinary and Plenipotentiary Diplomatist|November 2020
LIMITATIONS AND PROSPECTS
ADAM A. AZIM

Privatization within the Indian defense sector largely began with the onset of the 21st century, when India ushered in liberalization and economic reforms throughout the Indian economy as a whole. These efforts aimed at liberalization and reforms were intended to prompt a shift away from a state-led command economy that had been instituted during the Cold War. Also, this shift away from a command economy would entail handing over the reins of a number of state-owned enterprises to the private sector in order to boost efficiency and quality.

But for the most part, India’s defense sector still remains heavily reliant on support from both the Indian government as well as technologically advanced nations such as Russia and more recently the United States. India’s reliance on Russia for defense capabilities began in 1965 after India’s war with Pakistan. Because of the Cold War context, the United States in 1965 imposed an embargo on weapons sales to India as a concession to its Pakistani ally, and as a result, India turned to the former Soviet Union and thus Russia for defense support.

However, in the 21st century and despite foreign support, the Indian government remains the most important patron of Indian defense by providing for approximately 80 percent of development costs. Nevertheless, there has been an increase of approximately 26 percent in ‘Foreign Direct Investment’ (FDI) in India’s defense sector. Tata and Airbus are believed to be the two private companies who have procured the weightiest contracts for private defense development in India.

Continue reading your story on the app

Continue reading your story in the magazine

MORE STORIES FROM EXTRAORDINARY AND PLENIPOTENTIARY DIPLOMATISTView All

THE UNITED KINGDOM'S FOREIGN POLICY POST-BREXIT AND BEYOND

On 23 June 2016, citizens of the United Kingdom (UK) or Great Britain exercised their democratic rights to vote in a national referendum, also known as “The Brexit Referendum.”

5 mins read
Extraordinary and Plenipotentiary Diplomatist
February 2021

“THE STATE GOVERNMENT CONSTANTLY SEEKS TECH-ENABLED SOLUTIONS TO SECURE AND PROMOTE AGRARIAN OPERATIONS”

KAIGONAHALLI CHIKKEGOWDA NARAYANA GOWDA, MINISTER OF PLANNING, PROGRAM MONITORING AND STATISTICS, GOVERNMENT OF KARNATAKA

4 mins read
Extraordinary and Plenipotentiary Diplomatist
February 2021

THE UNITED STATES AND INDIA: A NEW ERA OF STRATEGIC COOPERATION AND FRIENDSHIP

The United States and India are thriving and resilient democracies.

4 mins read
Extraordinary and Plenipotentiary Diplomatist
February 2021

INDIA'S VACCINE DIPLOMACY- ETHICAL REASSURANCE

As the pandemic rampaged through the world since the end of 2019 and the entire scientific community struggled to find out a viable cure, accusations were traded regarding the origins of the virus.

5 mins read
Extraordinary and Plenipotentiary Diplomatist
February 2021

PRESIDENT BIDEN DELIVERS A PREDICTABLE FOREIGN POLICY VISION

On February 4, 2020 President Joe Biden delivered his first major foreign policy address since taking office at the U.S. Department of State Headquarters, on ‘restoring America’s place in the world’.

5 mins read
Extraordinary and Plenipotentiary Diplomatist
February 2021

INDIA'S EMERGENCE AS A LEADING GLOBAL POWER AND ITS ROLE IN INDO-PACIFIC REGION

In the contemporary age, the term ‘Indo-Pacific’ has been seen as a new construct.

5 mins read
Extraordinary and Plenipotentiary Diplomatist
February 2021

HEALTH DIPLOMACY: BUILDING RESILIENT INSTITUTIONS TO COMBAT HEALTHCARE CRISIS

In this pandemic ridden world, to cope with circumstances eff ectively or speedily, what we lacked the most is global health diplomacy. Almost every country, including India, did not feel a need for health diplomacy as equally relevant and indispensable as defence diplomacy. In the wake of this, this article highlights the urgent need for the world to focus more on health diplomacy with calibrated eff orts to sustain economies.

5 mins read
Extraordinary and Plenipotentiary Diplomatist
February 2021

Indiavietnam Military Diplomacy In Recent Times

India and Vietnam are steadfastly dedicated to nurturing a warranted friendship in the realm of bilateral Asian military aff airs.

5 mins read
Extraordinary and Plenipotentiary Diplomatist
February 2021

Beyond India's Vaccine Diplomacy For Global Good

The outbreak of COVID-19 had and continues to cause a significant degree of hardship across the world.

6 mins read
Extraordinary and Plenipotentiary Diplomatist
February 2021

India-Iran Military Cooperation: Analysing Iranian Defence Minister's Visit To India

The Indian foreign policy has undergone significant changes in approach and directions under Prime Minister Modi from non-alignment to multi-alignment with strategic autonomy.

5 mins read
Extraordinary and Plenipotentiary Diplomatist
February 2021
RELATED STORIES

An Exclusive Interview With Nandakumar Narasimhan

The Little Red Train

10+ mins read
Lens Magazine
March 2021

A Room for Dad

Before Mom passed, I made a promise to her

8 mins read
Guideposts
April 2021

THE DANGAL IN THE JUNGLE, PART 1

YOU KNOW YOU’RE SOMEBODY WHEN YOU’VE APPEARED ON AN INDIAN DANGAL POSTER — IN OTHER WORDS, IN A WRESTLING ADVERTISEMENT.

6 mins read
Black Belt
April/May 2021

WOUNDS AND THE WOMB

JULIE PETERS explores how to heal a relationship with the sacred womb, a place of death, life, and possibilities.

8 mins read
Spirituality & Health
Mar/Apr 2021

BE SQUIRRELY

Giant squirrels, giant lessons? Animal chaplain SARAH BOWEN explores what squirrels can show us about mindfulness.

4 mins read
Spirituality & Health
Mar/Apr 2021

From Russia With Love

Seen throughout Alaska, the matryoshka nesting dolls are as poignantly meaningful as they are increasingly adorable.

6 mins read
Porthole Cruise Magazine
March/April 2021

E8 Caste and the Indian Tech Ivies

IIT grads are highly sought after in Silicon Valley. Are they bringing deep-rooted prejudices with them?

10+ mins read
Bloomberg Businessweek
March 15, 2021

the Valley of the Dead

On the Trail of a Russian Movie Star

10+ mins read
Russian Life
March/April 2021

Russian Chronicles

Russian Chronicles

10+ mins read
Russian Life
March/April 2021

China, Russia Agree To Build Lunar Research Station

China and Russia said they will build a lunar research station, possibly on the moon’s surface, marking the start of a new era in space cooperation between the two countries.

2 mins read
AppleMagazine
March 12, 2021