Indian Defense shopping spree is over

It was a good party while it lasted. For years India has been spending left and right on all kinds of military equipment.

That era appears to be over.

The Indian government last week stalled completion of several major military equipment deals until at least the end of the current financial year on March 31. “We have no money,” said defense minister A. K. Antony at the Defexpo show in New Dehli on Thursday.

Antony said 92 percent of the defense budget had already been used up this year. With around $1.2 billion diverted from the defense capital expenditure budget back to the central government coffers, nothing is left for the advance payments that will need to be made when the contracts are signed–and to make matters worse the Indian rupee has taken a beating in the past year, making imports expensive.

Some major deals in the final stages of being signed include 126 Medium Multi Role Combat Aircraft (MMRCA), the Airbus A330 Multi Role Tanker Transport Aircraft and a repeat order for six Lockheed Martin C130J transports. “The MMRCA will not be cancelled…it’s [only] a money issue,” insisted Antony.