India and Pakistan have had a heavy reliance on foreign military aid since 1947. This reliance is due to an interplay of political and economic events and influences, as well as regional rivalries. This chapter argues that the provision of foreign military aid to India and Pakistan by the United States (US), Soviet Union/Russia, and China has been a key factor in enabling both to develop a nuclear program and to uplift the financial burden associated with conventional warfare. Further, and more radically, we posit that the mutual threat of nuclear armament has resulted in better economic relations between India and Pakistan and a de-escalation of border tensions and disputes. This can be seen in an analysis of the Kargil War in 1999 and in India’s implementation of the ‘Cold Start’ doctrine in the ‘post Kargil’ period.