The Bofors scandal was a major weapons-contract political scandal that occurred between India and Sweden during the 1980s and 1990s, initiated by Indian National Congress politicians and implicating the Indian prime minister, Rajiv Gandhi, and several other members of the Indian and Swedish governments, who were accused of receiving kickbacks from Bofors AB, an arms manufacturer principally financed by the Wallenberg family's Skandinaviska Enskilda Banken, for winning a bid to supply to India their 155 mm field howitzer. The scandal relates to illegal kickbacks paid in a US $1.4 billion deal between the Swedish arms manufacturer Bofors with the government of India for the sale of 410 field howitzers, and a supply contract almost twice that amount. It was the biggest arms deal ever in Sweden, and money marked for development projects was diverted to secure this contract at any cost. The investigations revealed flouting of rules and bypassing of institutions.

Rajiv Gandhi was an Indian politician who served as the 6th Prime Minister of India from 1984 to 1989. He took office after the assassination of his mother, then–prime minister Indira Gandhi, to become at the age of 40 the youngest Indian prime minister. He served until his defeat at the 1989 election, and then became Leader of the Opposition, Lok Sabha, resigning in December 1990, six months before his own assassination.