Indian Military

The Indian Air Force (IAF) commander Air Chief Marshal Pradeep Vasant Naik had announced in February at Aero India 2011 in Bangalore that the shortlist for the 126 Medium Multi Role Combat Aircraft (MMRCA) tender would be announced in the next few weeks. Then a few weeks back, he upped the pressure on the Ministry of Defense again, while addressing the Indian Women’s Press Corps. Indo-Asian News Service reported him as saying, “The cost negotiation for MMRCA will begin by the end of this month. I expect the contract to be signed before I retire from service in July this year.”

This pressure is likely intended to get the ministry to move on the outstanding issues related to the MMRCA tender process. Work remains to be done for it to be taken to its logical conclusion (The response this pressure elicits may well be a separate soap opera altogether). But the ministry is also under pressure to meet the April-end deadline for the expiry of the commercial offers submitted by the six vendors.

President Barack Obama has placed the cape of a world power on India and held out the promise of global leadership, complete with matching veto. But after the excited euphoria of television news channels over the US President’s carefully managed actions and typically crafted speeches is strained, and actual deal-brokering measured, India is left with the challenge of crafting compromises to meet this promise.

While the visit saw orders like SpiceJet’s purchase of Boeing 737 aircraft and General Electric Aviation’s F-414 engines to power the Light Combat Aircraft (LCA), these were actually decided much before his arrival. And the Indian Air Force (IAF) order for ten strategic lift C-17 aircraft, though understood to be a foregone conclusion, is not quite ready to be placed yet.

Even the removal of Indian defense and space organizations from the US list of entities, subject to Department of Commerce export controls, is as much a business decision that will certainly benefit US companies, as it might be strategic.