I've heard rumblings in the defense community that the India was going to start self-manufacturing defense equipment, and buy up what they couldn't produce on their own from the West. I guess injecting your military with legions of cheap Russian goods is a tough habit to break:

Despite Russia's propensity to squeeze more money out of India in ongoing arms contracts, it continues to maintain its stranglehold over the huge market here. India inked yet another massive contract with Russia on Friday, worth a whopping Rs 4,900 crore, to import another 347 T-90S main-battle tanks.

These 347 tanks will be in addition to the 310 T-90S tanks already imported by India, at a cost of over Rs 3,625 crore, under a February 2001 contract. Moreover, the Heavy Vehicles Factory at Avadi has already commenced the planned production of another 1,000 T-90S tanks under transfer of technology from Russia. Defence ministry sources said that while 124 tanks under the new agreement will be imported in "fully-formed condition", the rest 223 will come in "semi-knocked down condition" to be reassembled at Avadi. After payment of the first installment, Russia will supply the first 124 tanks in 29 months, with the rest to follow 11 months later.

While I understand India's proclivity towards Russian hardware, which dates back to their quasi-socialist post-colonial government, I'm a bit surprised that New Delhi isn't taking advantage of its new strategic partnership with the United States. American defense firms are generally more reliable than their Russian counterparts, and in most cases our gear is superior. Ticking off Ivan might be pushing them in the right direction, though.

India's newfound bonhomie with the United States has not gone well with its old friend Russia. Moscow is conveying its displeasure by hiking the price of already delayed defence deals with India. It has not only increased the annual escalation cost of weapon system from 2.55 percent to 5 percent, it is also demanding an additional $1.2 billion to deliver the aircraft carrier Admiral Gorshkov.

India is flying in Red Flag this year, which apparently is the primary catalyst for the Moscow-New Delhi spat. So NATO gets to train its pilots to engage all the latest Russian fighters (largely flown by our enemies), and Moscow reacts by driving India's defense industry right into our waiting hands. Hook, line, sinker, Ivan.