India has 39 state owned factories that produce weapons, ammunition and military equipment. These plants are notorious for their inefficiency, corruption and shoddy products. In an effort to solve some of these problems, India is building yet another state owned ammunition factory in partnership with Israeli Military Industries (IMI). This was to be a more efficient plant, but construction has been halted because the head of IMI has been blacklisted after being charged with paying bribes to Indian procurement official Sudipta Ghosh, while obtaining an earlier Indian arms contract. Historically, it's been difficult, some say impossible, to get a defense related contract with India without paying off someone.
While there are many defense firms in the world who have not done business with India, and thus not tainted, India likes buying Israeli military equipment. The Israeli gear bought so far has worked well, and the troops want more. But first the Israelis will have to deal with the problems they had in the past, when sales could not be completed unless someone was paid off.