Until about 2011, Indian defense manufacturing was almost a fiefdom of government companies such as Hindustan Aeronautics Ltd. (HAL) and Bharat Electronics Ltd. These organizations have long been criticized for slow development programs and inefficient production. Now the country will see if private enterprise can do better. By raising the limit on foreign ownership of Indian defense companies, the government has opened the way for global giants to inject know-how and funds into local operations. And the defense ministry is under pressure to spend more of its acquisition budget in India, as part of a government-wide campaign called Make in India. There is ample room for growth, because India is the world's largest arms importer, and has been spending only 30% of its equipment budget domestically.
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