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Ever since the Bofors
scandal that involved a former Prime
Minister from the Congress Party, Defense deals in
India have been plagued by accusations of scandals,
corruption, nepotism, and insider benefits. After the
Bofors deal consumed the Congress Government,
subsequent inept Governments led by inept leaders such
as V.P. Singh and Chandrasekhar bankrupted the
country. The economic reforms initiated in 1991 by the
present Prime Minister turned India into an economic
miracle.
However, no such effort was made into creating a strong process
procurement process that would further the interest of
the country and keep defense procurement outside the
ambit of political bickering or personal financial
gain. The major losers of this impasse were the Air
force and Navy. The Air force could not upgrade its
ageing fleet, get jet trainer train new pilots, and
plan for a new age conflict. The Navy, frequently
treated as a stepchild just a step above the Coast
Guard, could not replace its aircraft carrier INS
Vikrant, build a blue water navy, or upgrade its
submarine fleet. The Army was only marginally
successful in skirting such large-scale disaster
primarily because of its constant engagement with
terrorism. During the Kargil War, India had to swallow
its pride to obtain shells to fire from its Bofors
Artillery guns.
The present scandal comes at a very bad time for India.
Several long pending orders such as a 126 fighter
aircraft deal is pending, small but crucial orders
needed for the special forces from Israel are delayed,
and China has just hiked its defense budget by close
to 15%. It might have been better for the NDA to have
raised a transparency and reform issue and insist that
India hold back a portion of the contract back pending
investigation. Asking for the deal to be scrapped at
this late stage means it sets the clock back where the
Navy has to raise a new tender, invite quotes,
evaluate quotes, etc. In any case, most commissions
and investigations in India always end up absolving
those who have been accused.
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