Analysts: Russia Will Yield to US at India's Arms Market

27.03.2012 The US will outrange Russia in military exports to India since 2013, said Igor Korotchenko, director of World Arms Trade Analytic Center (WATAC).

"Russia secured top position at Indian arms market since 2008 through 2011 with about $7.16 bln which is 51.6% of India's overall military import. As of mid-March 2012, WATAC estimates India's backlog of import orders for 2012-2015 as $40.58 bln. Over 14.6 bln (36%) of that sum fall on Russia", said Korotchenko the day before opening of Defexpo India-2012 exhibition, reports RIA Novosti.

Therefore, according to WATAC, in the next 4 years Russia will double arms export to India, but portion of Russian weapons in India's military import will decrease by one third. "Competition of world's leading arms exporters in Indian market is expected to aggravate. Beginning from 2013, the US will become the leader at Indian arms market", forecasted Korotchenko.

In the current year, Russia will cover about 80% of India's military import ($7.34 bln), estimates WATAC. The center's director specified that volume of deliveries was calculated considering dates of actual transfers.

"In this year, such impressive result will be achieved by several large programs. Considerable part of these deliveries will be carried out with delays, this explains such high result in 2012", said the expert.

He reminded that the largest contract would be aircraft carrier INS Vikramaditya to be delivered to Indian Navy in Dec 2012. Cost of the ship's modernization was changed several times and finally reached $2.34 bln.

As for Korotchenko, the second largest delivery will be two Project 11356 frigates for about $1 bln.

"Third large transfer was leasing of Project 971I nuclear-powered submarine Nerpa to Indian Navy in January. Reportedly, cost of that contract was $920 mln", added the interviewee.

According to WATAC, it is also planned to deliver about 40 helicopters Mi-17V5, 9 ship-based fighters MiG-29K/KUB, 33 fighters Su-30MKI under contracts tied in 2000 (licensed assembling) and 2007 to India in the current year. Also, in 2012 it is expected to continue modernization of MiG-29 fighters, Tu-142 ASW airplanes, Mi-17 helicopters and simulators, delivery of Ka-31 radar picket helicopters, aircraft and rocket engines (AL-55, TRDD-50MT). Besides, repair of Project 877EKM diesel electric submarines, licensed production of T-90S main battle tanks, delivery of Club-S antiship missile launchers and other projects will be continued in 2012.