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The face of the Indian defence sector is changing rapidly with a strong focus on indigenisation. The man leading that change is Manohar Parrikar, India’s defence minister. Parrikar has worked hard over the last one-and-a-half years to bring a complete turnaround in the defence establishment. 
 
In a latest interview, Parrikar spoke about his future plans and the key security issues facing the country. 
 
Q. The new Defence Procurement Policy (DPP) is being referred to as a game changing policy for the sector. How do you see it altering the Indian defence growth story? 
 
A. In the new DPP, we have tried to shift the focus on Make-in-India, small and medium scale industries. We are also stressing on time-bound procedures. 
 
The defence sector has a strange set of procurement procedures, which do not normally exist for other procurements. One obvious reason is that products need to be tested as unless successful testing is conducted, the costly equipment can’t be procured. So testing is a major criteria and this was, so far, not allowed to Indian private companies and was resulting into major delays. So the new DPP opens up testing facilities. Various defence PSUs are also offering facilities to the private sector. The new DPP will address these concerns of the industry in detail. 
 
Q. The <keyword id="6354869" type="UNKNOWN" weightage="20" keywordseo="make-in-India">Make in India</keyword> initiative is gaining steam. The new category of ‘Indigenously Designed, Developed and Manufactured’ (IDDM) equipment reverses the local mix from 70:30 to 30:70. Do you have any timelines for its implementation? 
 
A. It won’t happen overnight. In the new DPP for IDDM, it will be only now that things will be processed. Orders may be placed after one year and actual production will start after a year. So, it is in 2017 that we will start seeing the real impact. Of course, some push that we had given earlier would result in some shifting of the balance during the current year. 
 
Q. We see a sudden rush from big corporates who want to invest big time in the defence sector. Already some 50 MoUs have been signed and over 350 licenses given. Is there any kind of a mechanism that you are going to put in place to monitor that everything that is being talked about actually takes-off? 
 
A. Unlike other sectors, the buyer is only one except for exports, which we have opened up. In fact, the recorded NoCs for export granted by us in spite of the fact that we have reduced the number of items under restricted export in defence, has almost tripled as compared to last year and grown by five times the earlier years. We are now touching around Rs 2000 crore this year. I expect growth of another 50%-100% because of offsets. 
 
In the next year, we should cross Rs 1 billion in exports, which itself will be an achievement. Except the export part of it, the rest is produced and purchased by the Indian defence forces. These are part of preparations. These are not actual fructification. The fructification will happen in the current year for some in the private sector whom we are already placing orders with. In fact, Tata’s have developed 6x6 (truck for Indian army), Larsen &amp; Toubro is in the final stage of getting the order for self-propelled guns. 
 
Q. Will the entry of private companies affect the role of defence PSUs and DRDO? 
A. PSUs are also part of Make-in-India. We are asking them to broaden their vendor base and get products outsourced so that the private industry also develops in course. 
 
Q. Indian defence companies say their products are comparatively much cheaper to, say those supplied by US companies, like for example the ultra-light weight howitzers developed by the Kalyani Group is around 50% cheaper than that manufactured in the US. Aren’t we spending a lot for importing equipments like these? 
 
A. I am not aware of the costs but I will definitely find out. We are serious on indigenously developed products and I will talk to them. 
 
Q. Are you happy with the budget allocation? How would you in the present constraints of fund allocation priorities your plans on modernization? 
A. I don’t see a big fund constraint. Let me put it this way, in a month if a family eats say 20 kg of rice they may consume around 500 grams a day --- so budgets have to be seen in that angle. What do I require today? One is my committed liabilities. I am talking about capital acquisition so if I have placed orders with the vendors then as they supply I have to go and pay. For example, Apache Helicopter for which I placed the order in October. It will be supplied in 2018. Initially, I paid some 15%. The total including the weapon package was about Rs 21,000-22,000 crore. I paid only Rs 3000 crore. How much do I require as per the calibrated payment terms --- maybe I will require another Rs 1500 crore this year and Rs 1500 crore next year and maybe some Rs 5000 crore or Rs 8000 crore the year after. So what I do today has its impact in next 5-10 years and what was done in 2012-13 is going to reflect now. 
 
Q. What about China and Pakistan’s participation in the Defexpo? 
A. I don’t see a big issue in inviting or not inviting. Traditionally, they have not been invited but I think from China we had some people to visit if I am not mistaken. There is no calibrated decision specifically taken in this regard. 
 
Q. The double finance scrutiny first by MoD and then by finance ministry is making defence procurement cumbersome. Why should there be a double scrutiny at all? 
A. Ask that question to the finance ministry. If you ask me it is a triple level --- MoD, then our own finance department and then the MoF. I think it’s a case for a higher delegated power. It will be taken up but I don’t see it as a big problem. I have no problem in finance expenditure going through it. 
 
Q. Your comments on the government’s plans to cut foreign vendor contracts by 30% in the next two years? 
A. We don’t intend to cut. We intend to purchase locally so automatically the procurement from outside will reduce. 
 
Q. In Rafale jet deal pricing is a big issue? Even the law ministry has recently raised some objections? 
A. Price is equally important. While I want the aircraft, I will definitely be interested in the right price. The objections are being attended to. 
 
Q. Your government is completing two years in office? How do you think it has performed? 
A. I am happy because this government is doing more than reasonably well. The foundation is already there and lot of things have been done by this government which had been in limbo for last 10-12 years so I feel that in another one year we would be very clearly reaping the benefits of the seeds that have been sown by this government and things that have been done by this government.

Parrikar: Real impact of Make in India in defence sector will be seen in 2017

The <keyword id="76451" type="COMPANY" weightage="60" keywordseo="Adani">Adani</keyword> Group is planning to invest in <keyword id="32723" type="COMPANY" weightage="60" keywordseo="Defence">defence</keyword> and aerospace production, thanks to Modi’s '<keyword id="6354869" type="UNKNOWN" weightage="80" keywordseo="make-in-India">Make in India</keyword>' campaign. 
 
According to media reports, the company is in talks with international defence companies for a strategic partnership to set up a defence manufacturing hub in India. It has been pitching its main asset — the country's largest private port with it’s sea and land links and the SEZ at Mundra in Gujarat. 
 
Sweden’s Saab is among the few companies being approached for these partnerships. The Swedish giant is already eyeing to set up production facilities in India. It wants major projects like the Rs 60,000-crore P-75I submarine contract and has proposed to manufacture the light Gripen fighter jet in India. 
 
Sources say Adani may also consider defence firms like Italy's Finmeccanica and US based Textron. The later owns BAE, which is being reviewed for a $700 million contract to supply howitzer guns to India. 
 
The Adani Group is the first among large Indian conglomerates to want to invest in defence and aerospace. Just last month the group has applied to the department of industrial policy &amp; promotion for a licence to manufacture helicopters under a new name — Adani Defence Systems &amp; Technologies Ltd. The sector has immense potential given that the country is one of the world's largest spenders in this area. 
 
(Image credit:Adani)

Watch out! Adani may raid the defence sector

As India is looking towards a long term, strategic partnership between <a href="http://www.businessinsider.in/searchresult.cms?query=defence&amp;sortorder=effectivedate">defence</a> ministry and the private sector, the initiative has been divided into five sub-groups.

	The Ministry of Defence led by <a href="http://www.businessinsider.in/searchresult.cms?query=manohar+parrikar&amp;sortorder=effectivedate">Defence Minister Manohar Parrikar</a> has cleared composition of the five sub-groups constituted for focused discussions on the strategic partnership model for selected platforms in the defence sector.

	READ ALSO: <a href="http://www.businessinsider.in/Here-is-the-complete-information-of-23-projects-that-defence-ministry-is-taking-up-under-Make-in-India-initiative/articleshow/52092916.cms">Here is the complete information of 23 projects that defence ministry is taking up under Make in India initiative</a>

	The first sub-group for Armoured Fighting Vehicles will be chaired by Col (Retd) H S Shankar, Chairman, FICCI Defence sub-committee on Indian Defence SME and will have representatives from the Defence Research and Development Organisation (DRDO) and two star rank officers from the Armoured Division of the Army Headquarters.

	The second sub-group, which will have discussions on platforms such as Aircrafts and Helicopters (fighter, transport, etc), will be headed by Sukaran Singh, who is Co-Chairman of CII National Committee on Defence. This group will also have participation from <a href="http://www.businessinsider.in/searchresult.cms?query=drdo&amp;sortorder=effectivedate">DRDO</a> and two star rank officers from Air Head Quarters.

	Sub-group-III that will focus on platforms including Submarines and their major systems will be chaired by Jayant Damodar Patil, Chairman FICCI Defence Committee and will comprise representatives from DRDO and two star rank officers from the Naval Head Quarters. Rear Admiral Pritam Lal (Retd), who was member of the Dhirendra Singh committee of experts, will also be a member of this Sub-group-III on submarines.

	Ammunition including smart ammunition will be the focus area for Sub-group-IV and will be headed by Neeraj Gupta, MD, MKU Pvt Ltd and nominee of industry association, ASSOCHAM. As in other sub-groups, this sub-group will have DRDO representatives and two star rank officers from the Army HQs. This sub-group will be facilitated by Wing Commander Vani Mishra, PO (Systems).

	Sub-group V will look into macro process management of issues related to eco-system, technical competence, financial evaluation, weightage to existing infrastructure, commitment of partner for life cycle support and other regulatory matters.

	This sub-group will be chaired by Rajinder Bhatia, Co-chairman, CII national Defence Sub-committee on Land Systems and will also comprise of DRDO representatives.

	As per sources, chairpersons of each of these five sub-groups have been asked to expeditiously complete the discussions on their relevant topics and be ready with their respective presentations latest by June 3, 2016.

	Parrikar had held a consultative meeting with the industry associations on April 25 on the issue of strategic partners for defence sector from private sector.

	(Anupama Airy is the Founder and Editor of EnergyInfraPost.com and DefenceAviationPost.com. She can be reached at <a href="mailto:anupama.airy@gmail.com" target="_blank">anupama.airy@gmail.com</a>​, Twitter handle: @anupamaairy)

	<o:p> </o:p>

India’s defence manufacturing deals will take place under these 5 categories

If the talks go through, <keyword id="2852683" type="UNKNOWN" weightage="20" keywordseo="russian-helicopters">Russian Helicopters</keyword> may make around 140 choppers in India. 
 In a major breakthrough to <keyword id="2257489" type="UNKNOWN" weightage="20" keywordseo="PM-Narendra-Modi">PM Narendra Modi</keyword>’s ‘<keyword id="6354869" type="UNKNOWN" weightage="20" keywordseo="make-in-India">Make in India</keyword>’ initiative, Russian Helicopters is in talks with Indian counterparts for a contract for 200 choppers, out of which over 140 will be made in India. 
 
"We are now discussing terms and conditions for the contract and copter configuration," said Igor Chechikov, deputy CEO of Russian Helicopters (RH). 
 
The remaining 60 will be supplied from RH's existing manufacturing facilities in Russia. 
 
The work on 140 choppers will be planned out with Hindustan Aeronautics Ltd (HAL) and other partners. 
 
The helicopters will be made in India under a pact signed by Modi during his visit to Moscow in December. 
 
The choppers will be supplied in collaboration with Rosoboronexport, a state export agency. 
 
The ongoing discussions include the scope of setting up a helicopter plant in India which will be in partnership with a number of Indian entities including HAL. 
 
"We expect to produce more helicopters from India, given the country's demand for a wide range of defence and security related equipment," Chechikov said, pointing to the potential of growing the joint venture business as well as technology and knowhow between the two countries. 
 
India has a fleet of over 450 Russian helicopters operating all of which were supplied over the last three decades in various phases. 
 
He also stressed on supporting the Russian hardware by establishing an after sales maintenance hub in India in the coming years. 
 
"India is a very strategic market with a huge demand for helicopters," he said at the Singapore Airshow 2016. 
 
Russian helicopters are widely used by the Indian air force, navy and border security force. 
 
RH is showcasing a wide range of its technology-savvy helicopters and aircraft at the air show for the South East Asian markets.

Russian Helicopters may make choppers in India soon!

Boeing and <keyword id="2836827" type="COMPANY" weightage="100" keywordseo="Tata-Advanced-Systems-Limited">Tata Advanced Systems Limited</keyword> (TASL) on Wednesday signed a framework agreement to take part in aerospace and defence manufacturing and potential integrated systems development opportunities, including unmanned aerial vehicles, taking <keyword id="6354477" type="PERSON" weightage="100" keywordseo="Narendra-Modi">Narendra Modi</keyword>’s ‘<keyword id="6354869" type="UNKNOWN" weightage="100" keywordseo="make-in-India">Make in India</keyword>’ campaign one step ahead. 

	The agreement was signed by Shelley Lavender, president of Boeing Military Aircraft and Sukaran Singh, managing director and chief executive officer of TASL. TASL already has a contract to manufacture aerostructures for Boeing's CH-47 Chinook and AH-6i helicopters.
 

	"This agreement with TASL is significant because it demonstrates Boeing's commitment to expanding its aerospace manufacturing footprint in India," Lavender said.
 "As we step into our 100th year in business, a new aerospace partnership with India is the perfect milestone to accelerate the momentum we have generated for making in India," said Pratyush Kumar, president for <keyword id="189173" type="COMPANY" weightage="100" keywordseo="Boeing-India">Boeing India</keyword>. "It is noteworthy that TASL will produce Chinook helicopter parts in India even before the procurement contract is signed with the Indian government." 

	The companies intend to access markets jointly for products and platforms developed together by Boeing and TASL, a company press release said.
 

	"This framework agreement is the result of the world-class competencies of TASL as well as the vendor eco-system it has helped establish in India. It gives us an opportunity to explore the massive potential in India for aerospace manufacturing and make the investments required to grow the industry," said S. Ramadorai, Chairman of TASL. "Boeing's platforms require complex manufacturing processes within a competitive cost structure and we are confident that the partnership will be able to deliver high quality aerostructures out of India."
 Other Tata group companies - <keyword id="2951672" type="UNKNOWN" weightage="100" keywordseo="Tata-Advanced-Materials-Limited">Tata Advanced Materials Limited</keyword> (TAML) and TAL Manufacturing Solutions (TAL) - are also supplying important components to Boeing. TAML has delivered power and mission equipment cabinets and auxiliary power unit door fairings for the P-8I long range maritime surveillance and anti submarine warfare aircraft. 
	 
	(Image credits: Indiatimes)

Boeing-TASL deal gives a huge boost to Modi’s Make in India

<ul><li>Deal volumes jumped by 21% to 191 while the values declined by 37% to USD 9.4 billion in <keyword id="20061151" type="General" weightage="20" keywordseo="April" source="keywords">April</keyword> compared to March 2024</li><li>Adani Group's three major domestic consolidations of around USD 2 billion in value marked 38% of the total deal values in April 2024.</li><li>Experts predict sustained momentum and growth in deal activities, supported by strong fundamentals and a conducive investment climate.</li></ul> In the dynamic landscape of Indian business transactions, the manufacturing sector has emerged as a beacon of value, while consumer retail reigns supreme in volume. April 2024 marked significant shifts in deal-making compared to the month before with a notable absence of billion-dollar deals. Overall deal volumes jumped by 21% to 191 while the values declined by 37% to USD 9.4 billion in April compared to March 2024, as per the latest <keyword id="20034170" type="General" weightage="20" keywordseo="Grant-Thornton-Bharat" source="keywords" meta.keywordsubtype="org" meta.entityname="Grant Thornton Bharat" meta.hostid="83" meta.entityid="Grant Thornton Bharat">Grant Thornton Bharat</keyword> Dealtracker report. The past month has witnessed a flurry of activity, with notable shifts and surges across various industries, offering a compelling glimpse into the evolving economic terrain. "Deal volumes increased in April 2024 marking the highest monthly volumes since May 2022. There were no billion-dollar deal but witnessed 12 high value (&gt; USD 100 million) deals amounting to USD 3.8 billion," said Shanthi Vijetha, Partner at Grant Thornton. <cmsannotation type="cmsannotation" annotationid="Adani Group leads M&amp;A activity" comment="subhead" text="Adani Group leads M&amp;A activity">Adani Group leads M&amp;A activity</cmsannotation> At the forefront of deal values stands the manufacturing sector, boasting an impressive tally of nine transactions amounting to a staggering USD 1,919 million. This surge is underpinned by two monumental deals, notably the Adani Group's strategic stake increase in Ambuja Cement and ACC, which was the most significant M&amp;A activity of the month. Adani Group secured a significant 7.5% stake in Ambuja Cements, injecting a substantial USD 1.8 billion into enhancing the manufacturing capacity of cement makers, signaling a bold step towards industry expansion and innovation. Overall, the group's three major domestic consolidations of around USD 2 billion in value marked 38% of the total deal values in April 2024. Despite this, the <keyword id="21645622" type="General" weightage="20" keywordseo="merger-and-acquisitions" source="keywords">merger and acquisitions</keyword> transactions saw the highest decline in value, dropping by 75 percent to USD 2.5 billion from USD 10.2 billion in March. This was mainly because of the absence of large-scale mergers like those seen in March. However, M&amp;A deal-making remained robust in April with significant domestic consolidations. "This month's activity, characterized by deal volumes spanning across breadth of sectors and by large deals by select players, illustrates a market that is both diverse and robust," observed Shanthi. <cmsannotation type="cmsannotation" annotationid="Private Equity landscape remains vibrant" comment="subhead" text="Private Equity landscape remains vibrant"><keyword id="19895041" type="General" weightage="20" keywordseo="private-equity" source="keywords">Private Equity</keyword> landscape remains vibrant</cmsannotation> The private equity transactions also experienced a slight decrease in value, reaching USD 2.666 billion, according to the report by Grant Thornton Bharat. However, with a total of 130 deals, the overall market landscape remains vibrant. The numbers indicate a clear shift towards enhanced number of investments while the size of the deals remains smaller compared to previous months. "The stable value of investments, despite the higher number of transactions, indicates a strategic adjustment towards spreading investments across various sectors, aiming to capitalize on emerging opportunities while mitigating large-scale risks," says the report. "The deal outlook for 2024 continues to remain positive as India stands at the cusp of a new era of growth and investment supported by a growing consumer market, a flourishing tech start-up ecosystem, and supportive government policies," concludes Shanthi Vijetha. Factors that could influence domestic markets in the near future include the outcome of Lok Sabha elections, global and domestic trends in interest rates driven by inflation, and supply chain dynamics. However, experts predict sustained momentum and growth in deal activities, supported by strong fundamentals and a conducive investment climate.

Volumes up, values down: April 2024 marks notable shifts in India's deal-making landscape

The <keyword id="6355100" type="ORGANIZATION" weightage="80" keywordseo="Indian-Navy">Indian Navy</keyword> is in the process of selecting private and public vendors from the country to procure new utility helicopters at the estimated cost of over Rs 20,000 crore, reported the Economic Times. The Navy has sent a proposal to the <keyword id="6369097" type="ORGANIZATION" weightage="80" keywordseo="Ministry-of-Defence">Ministry of Defence</keyword> which specifies that it needs 110 naval utility helicopters, out of which 94 are to be made in India in partnership with a foreign partner. 

	Moreover, the valuation of the contract makes it the largest 'Make in India' chopper deal till date, exceeding the Army light utility chopper deal that was given to Russia's Kamov in May and will cost over Rs 5,000 crore. 
 

	According to sources, the Navy has also proposed to purchase torpedoes and depth charges for choppers and that weapon trials would be held in India and abroad.
 As it was reported, 11 Indian companies, including <keyword id="45224" type="CITY" weightage="80" keywordseo="Mahindra">Mahindra</keyword>, Tata, L&amp;T and <keyword id="10926" type="CITY" weightage="60" keywordseo="Reliance">Reliance</keyword>, have shown interest to the proposal that was issued by the Navy earlier this year. All offered helicopters to be ‘Made in India’ in collaboration with a foreign firm. Mahindra and <keyword id="6356166" type="COMPANY" weightage="80" keywordseo="Airbus">Airbus</keyword> have even announced discussions on the formation of a joint venture (JV). The companies aim to form a JV firm in the coming months for ‘Make in India’ chopper contracts in what is speculated to be an exclusive contract for Airbus. While 11 Indian entities have expressed interest, there are only a handful of foreign companies with a helicopter that meets Indian requirements. These include Airbus, Bell and banned Italian entity <keyword id="252971" type="COMPANY" weightage="100" keywordseo="AgustaWestland">AgustaWestland</keyword>. 

	To make the selection more competitive, the Navy has decided that more than one Indian company can offer the same helicopter. This would mean that a foreign company could tie up with two more Indian entities. As the cutting factor is pricing, an intense competition is expected in the private sector to tie up JVs and MoUs. 
	 
	(Image: Indiatimes)

Push to 'Make in India'! Navy to screen private and public vendors for Rs 20K-crore deal

First Apple brick-and-mortar store launching soon in India: What makes it a big deal?

<div class="KonaFilter image-container display-table"><div><div class="image on-image">U.S. Navy photo by Mass Communication Specialist 1st Class Bryan NiegelA P-8A Poseidon assigned to the Golden Swordsmen of Patrol Squadron 47.</div></div></div><ul class="summary-list"><li>The US and India practiced hunting submarines in a joint exercise in the Indian Ocean last week.</li><li>They were the first anti-submarine warfare exercises since the signing of the Communications, Compatibility and Security Agreement (COMCASA) last fall.</li><li>The agreement allows for real-time intelligence sharing between the US and India, making it easier for the two countries to keep tabs on Chinese undersea activities in the area.</li><li><a href="https://www.businessinsider.com/?hprecirc-bullet" target="_blank" rel="noopener">Visit Business Insider's homepage for more stories</a>.</li></ul>The US and India practiced hunting submarines in the Indian Ocean last week, a first for the two nations since the signing of a major agreement making it easier to keep track of Chinese undersea assets.US and Indian P-8 multi-mission maritime patrol and reconnaissance aircraft, together with the US Navy Arleigh Burke-class guided-missile destroyer USS Spruance, participated in anti-submarine warfare training exercises, focusing on information sharing and coordination, the US Navy <a href="https://www.navy.mil/submit/display.asp?story_id=109271">said</a> in a statement."Our goal is to further standardize our procedures, so we can work more efficiently in future real-world operations," said US Navy Lt. James Lowe, a pilot with Patrol Squadron 8.<div class="KonaFilter image-container display-table"><div><div class="image on-image"><a href="https://www.indiannavy.nic.in/content/navy%E2%80%99s-long-range-maritime-patrol-aircraft-boeing-p-8i-dedicated-nation">Indian navy</a>One of India's P-8I long-range maritime patrol aircraft, dedicated on November 13, 2015.</div></div></div>The exercises, which took place near the island of Diego Garcia, were the first ASW drills since India and the US signed the Communications, Compatibility and Security Agreement (COMCASA) in September, The Diplomat <a href="https://thediplomat.com/2019/04/india-us-conduct-anti-submarine-warfare-drill-in-indian-ocean/">reported</a> last week. The agreement allows for real-time operational intelligence sharing, especially in the maritime domain, where China is stepping up its surface and undersea activities.Read More: <a href="https://www.businessinsider.com/us-india-comcasa-deal-improves-ability-to-communicate-and-track-subs-2018-9">The US just cut a deal with a major ally that will put China's submarines in their crosshairs</a>"If a US warship or aircraft detects a Chinese submarine in the Indian Ocean, for instance, it can tell us through COMCASA-protected equipment in real-time, and vice-versa," an unnamed source <a href="https://timesofindia.indiatimes.com/india/comcasa-will-pave-way-for-armed-drones-real-time-sharing-of-operational-intelligence/articleshow/65710226.cms">told</a> the Times of India when the agreement was signed.<div class="KonaFilter image-container display-table"><div><div class="image on-image">REUTERS/Guang Niu/PoolA Chinese submarine during an international fleet review in Qingdao, Shandong province, April 23, 2009.</div></div></div>It was first disclosed two years ago by Harry Harris, then the US Navy admiral in charge of US Indo-Pacific Command, that the US was working with India to better monitor Chinese activities in the Indian Ocean."There is sharing of information regarding Chinese maritime movement in the Indian Ocean," Harris explained in early 2017, adding that the US works "closely with India and with improving India's capability to do that kind of surveillance."Read more: <a href="https://www.businessinsider.com/us-dumps-cold-water-on-indias-claims-it-shot-down-a-pakistani-f-16-2019-4" data-analytics-position="9">The US is dumping cold water on India's claim it shot down a Pakistani F-16</a>"Chinese submarines are clearly an issue and we know they are operating through the region," <a href="https://thediplomat.com/2017/01/us-india-sharing-information-on-chinese-submarines-heres-why-that-matters/">said</a> Harris, who is now the US ambassador to South Korea.The US and India established their first secure communications link between the two navies as part of the COMCASA agreement in early April.<div class="KonaFilter image-container display-table"><div><div class="image on-image"><a href="https://www.indiannavy.nic.in/content/scorpene-class-submarine-kalvari-set-afloat-naval-dockyard-mumbai">Indian navy</a>India's first-in-class Kalvari submarine during floating at Naval Dockyard in Mumbai in October 2015.</div></div></div>The Department of <keyword id="6354810" type="UNKNOWN" weightage="100" keywordseo="defense">Defense</keyword> <a href="https://media.defense.gov/2018/Aug/16/2001955282/-1/-1/1/2018-CHINA-MILITARY-POWER-REPORT.PDF">noted</a> several times in its 2018 report on China's growing military might that the People's Liberation Army Navy (PLAN) continues to deploy submarines to the Indian Ocean and is "demonstrating its increasing familiarity with operating in that region.""These submarine patrols demonstrate the PLAN's emerging capability both to interdict key sea lines of communication (SLOC) and to increase China's power projection into the Indian Ocean," the Pentagon argued.Read more: <a href="https://www.businessinsider.com/us-marines-seize-small-island-to-train-for-a-possible-china-fight-2019-3" data-analytics-position="17">US Marines are practicing seizing small islands as a possible China fight looms in the Pacific</a>The Indian navy stood up its first squadron of P-8I Neptunes, a variant of the P-8A Poseidons used by the US Navy, in 2015. It currently operates a fleet of eight, but it has placed an order for four more of these planes, which are widely recognized as <a href="https://www.businessinsider.com/us-navy-p8a-poseidon-sub-hunting-aircraft-features-sales-2018-5" target="_blank" rel="noopener">the best anti-submarine warfare aircraft</a> in the world.Earlier this month, the US <a href="https://economictimes.indiatimes.com/news/defence/us-approves-sale-of-24-mh-60-romeo-seahawk-helicopters-to-india-for-usd-2-4-bn/articleshow/68698990.cms">approved</a> the sale of two dozen submarine-hunting, multi-role MH-60R Seahawk maritime helicopters to India for $2.6 billion. <div class="margin-top"> <h3>NOW WATCH: <a href="https://www.businessinsider.com/life-us-navy-submarine-military-training-armed-forces-2016-9">Everything you've ever wanted to know about life on a US Navy submarine</a></h3> <div> </div> </div>

The US and India practiced hunting subs for the first time since signing a deal making it easier to keep track of China

<ul><li>Following years of negotiations, India is expected to sign an agreement to purchase the <keyword id="3094666" type="PERSON" weightage="20" keywordseo="S-400">S-400</keyword> defence missile system from <keyword id="6358826" type="LOCATION" weightage="20" keywordseo="Russia">Russia</keyword>. </li><li>It has been speculated that the $5.4 billion deal may be blocked by the US, which places sanctions on countries engaged in defence cooperation and deal-making with Russia. </li><li>India has defended the deal to the US by saying that by boosting its defence capability, it can become a stronger US ally in the region. </li></ul>The President of Russia, Vladimir <keyword id="6355086" type="UNKNOWN" weightage="20" keywordseo="Putin">Putin</keyword>, is set to visit New Delhi this week for a two-day round of bilateral talks with his Indian counterpart Narendra <keyword id="6354642" type="PERSON" weightage="20" keywordseo="Modi">Modi</keyword>. While a number of issues are expected to be discussed at the India-Russia Summit, the main priority will be the signing of a defense deal. Following years of negotiations, India is expected to agree to purchase the S-400 defence missile system from Russia. It has been speculated that the $5.4 billion deal may be blocked by India’s ally, the US, which places sanctions on countries engaged in defence cooperation and deal-making with Russia. However, Russia seems confident that the deal will go through, while even India government officials have told media outlets that the signing of the deal is “more likely than not”. This is contingent on India getting a waiver from the US administration for the deal, which was a subject of their recent 2+2 dialogue. While a law was recently passed in the US Congress that allowed waivers to some countries, the waiver for India requires a personal certification from President Trump. The deal comprises five S-400 systems, which is capable of shooting down targets at a distance of 400 kms. The first unit is slated for delivery by 2020. <keyword id="6359526" type="UNKNOWN" weightage="20" keywordseo="military">Military</keyword> cooperation Earlier this week, Putin’s spokesperson, Dmitry Peskov, told TASS, Russia’s new agency, that the theme of the upcoming India-Russia summit would be military and technical cooperation and that a number of agreements were expected to be signed. When quizzed on the details of the S-400 deal and its progress, he said he was unable to share details. The two sides have been discussing the S-400 deal since 2015. India has defended the deal to the US by saying that by boosting its defence capability, it can become a stronger US ally in the region. In fact, India’s Cabinet Committee for Security even approved the deal last week despite the fact that it hadn’t received the US’s greenlight. In addition to the S-400 deal, India and Russia are also expected to discuss a number of other agreements, including one for the purchase of two Krivak stealth ships and another for the domestic production of AK-103 assault rifles. There are also some infrastructure investment pacts slated for discussion. A strong defence relationship with Russia is important to the Indian government. It requires Russian cooperation for the continued servicing and upgrading of its Russian-origin military equipment.

The focus of the India-Russia summit this week will be on one key missile deal

<ul><li>In May 2018, the <keyword id="6354458" type="UNKNOWN" weightage="20" keywordseo="US">US</keyword> government express concerns over India’s decision to buy the S-400 defense missile system from <keyword id="6358826" type="LOCATION" weightage="20" keywordseo="Russia">Russia</keyword>. </li><li>As a result of the $5.5 billion deal, India could have been the subject of <keyword id="6403436" type="UNKNOWN" weightage="20" keywordseo="sanctions">sanctions</keyword> under the US’s Countering America’s Adversaries Through Sanctions Act. </li><li>However, the US is set to exempt India from sanctions as it continues to reduce its military ties with Russia. </li></ul>Following the recommendations of Jim Mattis, the US <keyword id="32723" type="COMPANY" weightage="20" keywordseo="Defence">Defence</keyword> Secretary, the US Congress has allowed the government to grant exemptions to certain Asian countries for their defence deals with Russia. Mattis’s reasoning was that countries need more time to “transition” out of their military dependence on Russia. Rather than full-fledged sanctions, the US should develop its relationship with these countries. The Indian government will likely welcome the news of the waiver since its about to sign a large deal with Russia in a few months. A violation of CAATSA? In May 2018, Mac Thornberry, the head of a US congressional committee on armed services expressed his concerns over India’s military relationship with Russia. The Indian government had concluded a deal <a href="https://economictimes.indiatimes.com/news/defence/purchase-of-russian-s-400-to-curb-military-coop-us/articleshow/64363168.cms">to buy the S-400 defense missile system</a> from Russia. The deal exceeded the minimum threshold prescribed under the US’s Countering America’s Adversaries Through Sanctions Act (CAATSA), which meant that the US could have placed sanctions on India as a result for its purchase of Russian military equipment. It could also have endangered future military deals and technology sharing between the US and India. The CAATSA was passed in August 2017 to impose sanctions on Russia for its alleged manipulations of the US Presidential elections in 2016. Despite the risk of raising the ire of its ally, in June, India’s defense minister, Nirmala Sitharaman, said it was moving ahead with the $5.5 billion deal, which is scheduled to be finalised in October 2018. She explained that India and Russia had a long-standing military relationship. Additionally, the CAATSA, which is targeted at Russian entities, only came into effect in January 2018. The S-400 deal was agreed to, in principle, in 2016. A conditional waiver The waiver to India is conditional on India continuing to reduce its military cooperation with Russia. As per the recommendations of Secretary Mattis, the US will be happy to step in and fill the supply gap once India cuts ties with Russia but India needs to meet it halfway. In fact, the waiver is a recognition of India’s growing relationship with the US, especially for the purchase of military equipment. The issue will likely come up in India’s 2+2 talks with the US in September 2018. India has a tough choice to make. While its military deal making with Russia stretches back to the mid-20th century, it will not want to defy the US. But ending military ties with Russia also doesn’t seem to be viable. As the US’s relations with Russia ebb to their lowest point in decades, allies of both countries like India will continually find themselves stuck in the middle. As its global influence wanes, the US might have to dial back on the stricter provisions of CAATSA, lest it alienate some of its allies.

You Searched For "deal making in india" and got 11 results

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The US and India practiced hunting subs for the first time since signing a deal making it easier to keep track of China

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