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.
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.
Although India’s defence planning mechanism has evolved over the years, it is still inadequate with respect to prioritisation of precious resources, optimum force suture and creation of a strong domestic defence industrial base. Given India’s complex security environment and massive expenditure on national defence, the planning mechanism needs to be strengthened by articulation of national security objectives and creation of Chief of Defence Staff (CDS).
India's raised its defence budget for 2010-11 by 3.98 per cent to Rs. 1,47,377 crore. This allocation represents 2.12 per cent of gross domestic product (GDP), which is below the global average of 2.5 per cent. Considering the void in defence preparedness and the rising military expenditure and capability in neighbourhood, India needs to increase its defence spending to around 2.5-3.0 per cent of GDP. However, the increase in allocation has to go with reforms in capital acquisition system, which in present form is unable to spend the allocated resources.
F-35 is not an Ideal Choice for India
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.