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During at least the last two years, the Indian military has complained about a lack of funds for resolving existing liabilities. Amit Cowshish, a former financial adviser for acquisitions at the MoD, said the military will likely continue to face the challenge of preventing defaults on contractual payments.<\/p>\n\n\n\n
The senior MoD official told Defense News that due to the shortage of funds, at least a dozen pending defense contracts will experience delays. \u201cThe current $18.52 billion capital allocation is only [a] marginal increase from [the] previous year [capital] allocation of $18.02 billion [and] does not even adequately cover inflation costs.\u201d<\/p>\n\n\n\n
The Indian Air Force is to receive $6.76 billion from the 2020-2021 budget, a drop from the previous year\u2019s $7.01 billion. The money is expected to go toward payments for orders of Rafale fighters from France and an S-400 missile system from Russia.<\/p>\n\n\n\n
The Indian Navy is to receive $4.56 billion, which is expected to help cover the cost of leasing a nuclear submarine and stealth frigates from Russia, as well as pay for warships from Indian companies. A Navy official said it is unlikely the service will be able to sign a contract for 24 MH-60R multirole helicopters for more than $2 billion from the U.S. next year.<\/p>\n\n\n\n
The Indian Army is to receive $5.06 billion to pay cover previous orders of wheeled and ultralight artillery guns, T-90 tanks, and ammunition.<\/p>\n\n\n\n
India\u2019s state-owned defense companies continue to receive 60 percent of defense-related business, with 30 percent going to overseas defense companies and 10 percent to domestic private defense firms.<\/p>\n\n\n\n
Another MoD official said the armed forces plan to focus on industry-funded defense projects under the government\u2019s \u201cMake-II\u201d category, which allows private companies to participate in the prototype development of weapons and platforms with a focus on import substitution, for which no government funding will be provided.<\/p>\n","protected":false},"excerpt":{"rendered":"
Find out what each armed service will receive in the new budget, and where that money will go.<\/p>\n","protected":false},"author":7,"featured_media":43960,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":45,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[45,160,11,36],"tags":[],"coauthors":[3390],"class_list":["post-26823","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-asia-pacific","category-daily-news-roundup","category-global","category-newsletters"],"acf":{"subheadline":"","legacy_arc_id":"VHZIVF3DX5E2FOJL2L24RBJZ4Y","arc_canonical_url":"\/global\/asia-pacific\/2020\/02\/04\/new-weapons-purchases-suffer-under-indias-latest-defense-budget\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented By:"},"yoast_head":"\n