The proliferation of small arms and ammunition is a major issue that threatens the security of India. Aspects related to illicit manufacture of local country made guns, smuggling, pilferage from government stocks and a weak monitoring or surveillance mechanisms further complicate the issue.
Even though the Indian government has begun to encourage participation of private sector in defence systems production, it is not technologically competitive in the global market. The Chinese are giving importance to two factors: first, the civilian high technology market should increase sophisticated dual-use products that are readily available to the military. Developments of new C4ISR capabilities in the military have been a consequent result of improvements in the telecommunications sector.
