An efficient, transparent PPP policy dovetailed with an effective FDI framework will not only ensure that state-of-the-art defence equipment is procured but will also be instrumental in enabling transfer of technology.
Given the sensitivity attached to defence-related FDI, each investment should be subject to wider review and impact analysis following which the FDI percentage could be determined varying between zero and 100 per cent.
The defence budget for 2011-12 has not been unduly impacted by the fiscal consolidation process, and reflects the MoD’s ability to spend resources within the stipulated time.
In the absence of reforms in several areas, DPP-2011 may not be able to achieve its stated objectives of expeditious procurement and greater involvement of domestic industry in defence production.
India’s increasing reliance on FMS route is indicative of its desperation to bridge the gaps in its defence preparedness and shows the weakness of the Defence Procurement Procedure.
Public Private Partnership In Procurement Practices
An efficient, transparent PPP policy dovetailed with an effective FDI framework will not only ensure that state-of-the-art defence equipment is procured but will also be instrumental in enabling transfer of technology.