Indian companies come under US sanctions, will India’s defense ecosystem also be affected?

New Delhi : America has banned more than 400 companies from around the world selling goods to Russia. These also include 19 Indian companies. But most Indian companies do not make any special defense equipment, so it will not have any significant impact on India. Only one of these companies works with DRDO and the Army. America suspects that these companies are selling such equipment to Russia, which can be used by both civilians and the army. Many Indian companies are simply buying electronic equipment from Western countries and selling it to Russia, because Western countries have imposed many restrictions on Russia.

According to the report of our associate Economic Times, in some companies even the registered directors and shareholders are Russian citizens. For example, Denvas Services mainly supplies digital kiosks for different services. Russian citizens have stake in this company.

According to Indian law, it is legal for foreign nationals to be directors in Indian companies and there is no restriction on working with Russian entities. This company is accused of giving microelectronics equipment made in America to Russia for use in its modern weapons.

Out of these 19 companies, RRG Engineering is the only company which works to some extent with the Indian defense sector. It has worked with DRDO and supplied essential items to some military units. This company is accused of sending more than 100 consignments of microelectronics to the US-banned Russian company Artex Limited Company.

According to records, RRG had earlier also provided staff to build data centers and IT networks in some of the DRDO laboratories. It has also supplied a limited number of nuclear, biological and chemical attack detection equipment to various military units. The company claims that it has also worked in building satcom stations. Industry experts say that such equipment is easily available in India and can be easily purchased if needed.