The intention of the JV guidelines notwithstanding, the policy document suffers from certain weaknesses which may impact its objective of enhancing national defence industrial capability.

In the wake of the selection of the Rafale the offset clause currently in force must be used to revamp India’s domestic aerospace industry, making it more technologically current and capable of taking on advanced design and development tasks in future.

The range, speed, armament carrying capacity and the ability to accurately deliver a variety of weapons against different targets make the current IAF fleet of just over 32 squadrons far more formidable than when the IAF had almost 39.5 squadrons.

The Rafale’s upkeep and maintenance would demand a very high level of training and skills both by the pilots and technical personnel. Above all, stupid mistakes must be avoided by bringing about a fundamental change in our outlook to peacetime operations.

Notwithstanding positive developments over the last decade, certain grey areas in industrial licensing and FDI policy need further improvement to facilitate the private sector’s more meaningful participation in the Indian defence industry.

International economic circumstances are propitious for India and Indian defence companies to strike deals that would help reduce dependence on foreign sources for defence needs.

F-35 is not an ideal choice because of the delay in its developmental schedule, a tight production line, prohibitive cost, India’s own efforts to jointly develop and produce a fifth generation fighter with Russia, and little technological or industrial benefits that would accrue.

The Dialogue was featured in prime time on the Chinese State-run TV channel, with the comment of the Chinese Premier Wen Jiabao that it had achieved “positive results”.