• Payment crisis: One of the main causes of uncertainty over India-Russia defense deals is the payment crisis. India and Russia have been facing challenges in aligning their payment mechanisms due to the imposition of sanctions on Russia by the United States. This has led to difficulties in making timely payments for defense equipment and services.
• US sanctions: Another factor contributing to uncertainty is the threat of US sanctions. India is trying to balance its defense ties with both Russia and the US, but any significant defense deal with Russia could potentially attract sanctions from the US. This creates a dilemma for India as it tries to maintain its strategic autonomy while avoiding any repercussions from the US.
• Budget constraints: India's defense budget constraints have also led to uncertainty. The country has limited funds to allocate towards defense purchases, and the delayed or uncertain nature of these deals can create difficulties in planning and budgeting for future acquisitions.
• Technological advancements: India is also exploring options with other countries for defense procurement, particularly in terms of advanced technology and diversifying its supplier base. This diversification can further contribute to the uncertainty over India-Russia defense deals.
• Political dynamics: Political dynamics and changes in leadership can also impact defense deals. With shifts in governments and strategic priorities, there may be a reevaluation of existing deals, leading to delays or cancellations.