Last year, defence spending rose 5.5% to almost $64 billion, data last week showed. Prime Minister Narendra Modi deserves credit for a $250 billion military modernisation plan. But without efficiency and focused investments, defence companies face compressed margins. Meanwhile, changes at the top of the defence ministry have led to some policies that helped private companies being rethought. Unless India can address these shortcomings with policies aimed specifically at attracting private-sector investors, its dreams of a defence overhaul face a disappointing reality.

Source: Hindustan Times May 08, 2018 06:45 UTC