Geography Reference
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the 1999 conflict with Pakistan in Kargil), has logically led it back to the
Russians.
Although bereft of political compulsions vis-à-vis Russia, and despite India's
long standing objective of diversifying its defense suppliers (70 per cent of
India's military arsenal is Russian), the Indian leadership perceives defense deals
with Russia as holding the advantages of price competitiveness, cutting-edge
technology and the potential for technology transfers, as well as the Indian
forces' familiarity with Russian equipment.
Russia's commercial imperatives in the defense sector are understandable,
having inherited a huge military-industrial complex comprising 1,600 defense
enterprises with nearly two million personnel. Political leaders had initially
thought reforms in the economy and military-industrial complex could be done
quickly and well, and to that end, elaborate programs were adopted for
restructuring the armed forces,conversions of defense institutions, and
revitalization of military R&D. But the transition has been far from easy, with
the emergence of a confused system exhibiting some of the worst features of
both planned and market economies including a weak state, insecure property
rights, barter and rampant crime and corruption. 24
The reality of this situation is recognized in the highest political circles, with
Ilya Klebanov, Russia's Deputy Prime Minister, declaring that arms sales 'are
the life buoy for our defense industries now that the defense budget is so small
and military state orders are so few'. Klebanov has promised that 'big contracts,
joint work and joint production of arms are waiting for us [India and Russia] in
the future'. 25 Large Russian firms such as MiG MAPO have been given the right
to engage in arms transactions directly. From India's point of view, this type of
openness is extremely attractive given its persisting commitment to improve
indigenous capability toward achieving greater strategic autonomy.
The importance of India for the Russians may be gauged by the fact that the
Indians buy more hardware from the Russian defense industry than do Russia's
own military forces. During Putin's visit, the bilateral defense relationship was
taken much further than before. The most ambitious defense deal relates to
India's purchase of more than 300 T-90S main battle tanks (MBT) with anti-tank
guided missiles. The Indian Army has expressed reservations about the
indigenously built Arjun MBT; besides the delay in its delivery has led to
frustrations in the Army. Included is the option to transfer technology and set up
a manufacturing unit in India. Another contract allows India to assemble Sukhoi
Su-30 fighter aircraft under license from Russia. The Indian Air Force chief, Air
Marshal A.Y. Tipnis, has described the Su-30 as the 'best aircraft available in its
class'. 26 Russia has also agreed to lease four Tu-22 Backfire bombers (maritime
reconnaissance and strike aircraft).
The Indian Navy stands to gain significantly as well. Russia indicated its
willingness to sell the aircraft carrier Admiral Gorshkov, including refitting her
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