India’s defence forces have to be continually prepared with modernised assets and a well-planned and executed supply-chain network. This calls for a well-evolved logistics infrastructure.
It has been a long time since the first set of instructions on defence procurement was issued in 1992.
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 Indian Army is undergoing the process of transformation. This, if realised, would become one among the critical factors that will assist India achieve the ability to secure its national interests. A few issues are worth flagging, even as the process is underway.
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.
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.
During application of prescribed procedures, many contradictions and ambiguities crop up, resulting in delays in decision making and, in some cases, to even faulty decisions.
With the growth of the public sector in Defence Production a large number of industrial units in the Private Sector has also grown with varied scales of operation in areas like outsourcing of raw materials, components, sub-systems, assemblies and sub-assemblies.