Ajit has been recently promoted as the Head of the Department of Weapon Sales (DWS) in the Ministry of Defence Production (MDP). His charter of duties includes international sales of weapons produced domestically by MDP.
In two recent wars, MDP weapons have performed admirably, resulting in many countries showing interest in buying them, particularly long-range artillery and missiles. Country A and country B have asked for these weapons. However, production constraints restrict DWS to accept only one purchase order.
Country A is a developing nation with a sound technology base. MDP is planning R&D collaboration with it for the next generation of weapons. It is not part of any security alliance and needs weapons for protection from a troublesome neighbour. It seeks a large acquisition on a long-term loan.
Country B is also a developing nation. Military strength is its priority, with the military budget often ingressing into allocations for human resources and infrastructure development. It is in security alliance with a superpower who has a large military base there and periodically allots it financial grants. It is a member of an economic bloc with which the government is currently negotiating a free trade agreement. It is not a signatory of NPT but possesses smaller nuclear weapons and delivery systems. It supports some guerrilla forces abroad. It has sought a smaller acquisition and is prepared to make some advance payment. It is currently negotiating arms purchases from another nation too.
Ajit discussed this case with his counterparts in the related departments. Therein, the significant economic benefits, employment generation and stronger diplomatic relations arising from this sale were highlighted. It was also emphasized that refusing the deal could result in country B purchasing weapons from some other supplier.
Ajit was aware that in arms sales, due diligence at each stage was pivotal to ensure conformity to national policy and international treaties.
Discuss the options available to Ajit. Which option should he select and why?
Options Before Ajit:
Option 1 — Sell to Country B: Immediate revenue, advance payment, diplomatic pull with a superpower ally.
Option 2 — Sell to Country A: Payment deferred (long-term loan), smaller advance.
Option 3 — Defer both, expand production capacity — ideal but delays revenue and cedes market.
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