The ‘Make in India’ drive of Prime Minister Narendra Modi offers a way of improving the country’s self-reliance in defence production. But for the MII to succeed in the defence manufacturing sector, the government needs to address some legacy issues.
The Indian defence industry needs procedural clarity and simplification to be ingrained in the “Make” procedures, as the rules are presently silent on a number of important operational aspects.
Widespread problems have made the operating environment ‘dysfunctional and inefficient’. Some of this is on account of inscrutable issues like ‘integration of the services with the MoD’ or ‘civil-military relations’ but, in large part, the immediate problem lies with MoD’s inability to resolve more mundane issues.
Widespread problems have made the operating environment ‘dysfunctional and inefficient’. Some of this is on account of inscrutable issues like ‘integration of the services with the MoD’ or ‘civil-military relations’ but, in large part, the immediate problem lies with MoD’s inability to resolve more mundane issues.
There is no single agency in MoD to deal with these issues holistically. Generally, matters related to administrative powers are processed separately for each service by the administrative wings concerned with little concern for commonality.
The effort to set right the operating environment has to start with creating a mechanism to review the existing devolution of power comprehensively based on clearly defined principles and not in an ad hoc manner.
For the mantra to become an all-pervasive reality in defence acquisitions in India will be to multiply manifold the onset, frequency, range and depthof its industry engagements.
Replacement of the Avro is an approved requirement. Scrapping the on-going process could delay acquisition of the transport aircraft by at least a year or two as it would inevitably involve revisiting the qualitative requirements (QRs) before restarting the tendering process.
If reports about the diversion of INR 13,000 crore from the capital segment of the defence budget to the revenue heads are true, it is an indication of the growing strain on the revenue budget.
It is difficult to visualise how the Russian offer to make LUH in India could be actualised unless the government invokes ‘strategic considerations’ for making it in India or signs an inter-governmental agreement for that purpose.
Reinventing India’s “Make” Procedures for Defence Acquisitions
The Indian defence industry needs procedural clarity and simplification to be ingrained in the “Make” procedures, as the rules are presently silent on a number of important operational aspects.