However, economic recovery starting in the early 2000s also led to the rejuvenation of weapons manufacturing due to domestic and export market demand. At the same time, defense privatization and consolidation were already limiting innovation and decreasing productivity. When Warsaw Pact countries applied to and then joined NATO, this led to another major loss in Russia’s customer base. Russia’s incapacity and shifting geopolitical realities soon led India to begin diversifying its imports and focusing on indigenous weapons development. India will also begin increasing its domestic production of such parts, and in the long run will move ahead with its stated intention of developing a stronger indigenous defense industry.Īfter the collapse of the Soviet Union in 1991, Russia had trouble fulfilling export orders for defense equipment. In response to these challenges, we expect India to begin diversifying its weapons purchases, specifically seeking out countries that manufacture spares and upgrades for Russian-origin weapons.
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