“The Future of the U.S.-India Relationship,” Ambassador R. Nicholas Burns

Although nowhere near as high profile or politically dramatic as the 2008 Indo-U.S. nuclear deal, India’s proposed $10 billion procurement of 126 medium multirole combat aircraft (MRCA) may have a much more profound impact on India’s strategic relations, particularly if a U.S. Platform – either Lockheed’s F-16 E/F or Boeing’s F/A-18 E/F – is selected as the winning bid.

In the Medium-range Multi-Role Combat Aircraft (MMRCA) sweepstakes, the Indian Air Force (IAF) is confronted with many choices, all of them bad. Whatever the IAF’s reasons for wanting a new aircraft, the Indian government means to use the deal to make international political capital, gain leverage in bilateral relations, and cement a strategic partnership.

Parties in India raise money for both elections and inter-election purposes through private donations, the bulk of which are believed to be unaccounted for despite recent incentives for transparency in the Election and Other Related Laws (Amendment) Act of 2003, which introduced tax-deductibility for political donations against receipts. While parties are tax-exempt, they have to file income tax returns. However, these declarations are thought to be understatements.