Indian Military Welcomes Private Sector

To help upgrade the country's aging military hardware, the Defense Ministry announced Thursday that Indian authorities would allow private companies to develop high technology military systems.

Such work had previously been the sole domain of the government, and the government's decision comes as India plans to spend more than US$30 billion on military equipment, much of it high-end, in the next six years.

At the top of India's shopping list are 126 fighter jets, which the government estimates will cost US$9 billion.

The jets, like many other needed items, will come from abroad, and the new policy appeared to be part of an effort to boost the capabilities of domestic arms manufacturers. Announcing the new policy, Defense Minister Pranab Mukherjee said it opens the doors for Indian industry "to participate in defense research, development and production," according to a ministry statement.

Until now, the government has allowed the private companies to manufacture only limited military items, nearly all relatively low-tech or nonoffensive, such as rocket launchers or engines for navy ships and heavy vehicles.