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.
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.
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.
Publisher: Pentagon Press
Price: Rs. 1295
This book is a compendium of papers presented and circulated in the International Seminar on Defence acquisition organised by the Institute for Defence Studies and Analyses on July 12-14, 2011. Written by the practitioners, industry leaders and subject experts, the book brings out the best international practices in defence acquisition.
E-book available for free
Some of the provisions in the DOG do not seem to be well thought out, provide greater leeway to the foreign companies, and have a potentially negative potential on eligible manufacturing sector, particularly defence manufacturing.
Chairperson: Shri Vinod Misra
Discussants : Dr Selvamurthy and Shri Amit Cowshish
The ordnance factory organization has grown over the years and now consists of 39 factories with two more being set up.
An expansionary fiscal policy has been the prime mover for the large increase in the budget of the defence ministry, which would otherwise have come under severe budgetary pressure.
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.
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.