The India-China defence deal has been a no-win situation for a lot of companies.
The country is keen on the agreement, but is keen to ensure that there is no loss in terms of jobs and revenues.
This is what one defence contractor has told NDTV.
NDTV has learnt that India has expressed interest in selling its aerospace sector to China, but it is looking for a more “no-loss” deal.
This has not stopped some of the biggest companies from saying no to the deal, according to NDTV sources.
“We have already discussed it with the government, and they have said they are happy for us to take on this deal,” said one defence official.
This comes after the US, France and Germany all expressed their opposition to the $US2.5 trillion deal last year.
The US, China and Russia are the biggest buyers of Indian defence technology.
China’s defence industry has grown to become the third largest in the world.
Its investments in India have surged from $US1.3 trillion in 2016 to $US4.2 trillion in 2017.
“This is the second-largest defence industry in the country, after the USA,” a defence ministry official told NDtv.
The defence ministry said that while the government has the right to determine the terms of the deal between India and China, it cannot “negotiate a deal that does not guarantee job security.”
But this is not a big issue for defence companies.
According to a 2016 report from the United States Institute of Peace, India’s defence sector accounts for more than a third of global defence sales, making it the biggest supplier of defence equipment to the US.
India also has a close relationship with US President Donald Trump, who has been outspoken against the deal.
A senior government official said that the decision to end the deal was a matter for the defence ministry.
“I don’t know the exact details of the decision, but this decision was taken by the Defence Ministry on its own,” he said.