India spends a significant amount of resources on its national defence. Efficiency in utilisation of resources is not only an economic imperative but vital for defence preparedness. In view of this the Defence Economic and Industry Centre was created in 2006 to promote research on various economic aspects of India's defence. Since its inception, the Centre has undertaken a number of policy relevant studies besides constantly engaging vital stakeholders (Ministry of Defence, Armed forces and Industry) on a range of issues. In this brief period, the Centre has organised over 10 events, including a major international seminar on Defence Acquisition in July 2011. Presently the Centre is preparing a Detailed Project Report (DPR) for the Ministry of Defence for setting up a Defence Acquisition Institute in India.
Major Focus Areas of the Centre includes:
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May 7, 2013
Most developed economies are already feeling threatened by increasing equity investments sponsored by foreign government-owned and/ or foreign government-controlled entities in the defence and high-tech industries. A coordinated government response for supervision of foreign investments will emerge on the horizon sooner than later.
May 6, 2013
On April 20th, the Defence Acquisition Council (DAC) of the Ministry of Defence announced 15 major amendments to the defence procurement and production policies, with the hope to incentivise indigenous defence manufacturing while promoting transparency and efficiency in the procurement process.
May 6, 2013
Defence acquisitions are always much debated and scrutinised. The criticism ranges from a lack of direction in procurements to needles procedural complexities and from corruption in defence deals to bureaucratic apathy. The Defence Acquisition Council, chaired by the Defence Minister, has taken some bold and much needed decisions on April 20, 2013 in an attempt to address some of these issues.
April 25, 2013
Like many other developing counties, Brazil also believes in self-reliance in arms manufacturing and has articulated comprehensive national defence policy with a strong support of its armed forces. There could possibly be some lessons for India.
March 20, 2013
Parameters, dimensions and operational requirements specified by the user must be evaluated exclusively by the user trial team, while DGQA must concentrate only on the testing of quality encompassing the product design, the material used and the manufacturing process in addition to the environmental testing of the product under simulated conditions.
March 13, 2013
By now making software development ineligible for discharge of offsets we might be depriving ourselves of what was considered necessary only a couple of months ago. This could also prove to be a setback for the Indian software industry.
March 8, 2013
In its most candid form, the fundamental message is that the growth in the allocation for defence, as indeed for other sectors, may not always be consistent with the past trend or as per the long-term growth rates indicated by the Ministry of Finance.
March 4, 2013
A GDP growth of less than seven per cent combined with the fiscal consolidation path that the Finance Minister has articulated in his budget speech means a lot of pressure on the defence ministry whose plan for current and future expenditure up to 2017 is based on past GDP growth rate of 8 to 9 per cent.
The Defence Budget 2013-14: Reasonable in the Existing Circumstances but Need for Re-orientation and Reform
March 4, 2013
There is a need for an overhaul of the defence planning and budgeting systems to make them outcome oriented, which will lead to the development and maintenance of requisite capability through the defence forces as an entity over a specified long-term horizon.