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  • Indian Defence Industry: An Agenda for Making in India

    Indian Defence Industry: An Agenda for Making in India
    Author
    2016
    Publisher: Pentagon Press
    ISBN 978-81-8274-905-4
    Price: ₹. 995Purchase Download E-copy

    About the Book

    This book thoroughly probes the Indian Defence industry and the policies pertaining to it. Based on hard core evidence, it identifies the key shortcomings of this vital sector and provides a detailed roadmap for the Modi government’s ambitious ‘Make in India’ programme to succeed in defence production sector. Though written with a clear focus on influencing policy making, the book is presented in an accessible format to be easily understood by the wider strategic community.

    About the Author

    Dr Laxman Kumar Behera is Research Fellow at the Institute for Defence Studies and Analyses (IDSA), New Delhi. As a member of the IDSA’s Centre of Defence Economics and Industry, he specialises on issues related to arms procurement, offsets, defence industry, military spending, defence cooperation and arms export control. He was closely associated with two high-level Committees set up by the Ministry of Defence on Defence Acquisition and Defence Expenditure. He was a Consultant to the Task Force on Self-Reliance and Defence Modernisation, constituted by the National Security Council Secretariat (NSCS). In 2013, Dr Behera held the prestigious ICCR Chair, India Studies, at FundacaoGetulio Vargas (FGV), Rio de Janeiro, Brazil.

    CONTENTS

      Preface
      Acknowledgements
      List of Abbreviations
      List of Tables
      List of Figures

    1. Indian Defence Industry: The Journey to Make in India
      Defence Industrialisation Phases
      Can the Indian Defence Industry Make in India?

    2. Ordnance Factories
      Origin and Growth
      Management
      Employees, Production, Sales and Accounting
      R&D and Technology Absorption
      Execution of Orders
      Pricing of OFB Products
      Quality of Products
      Exports
      Capacity Utilisation and Impact of Modernisation
      Poor Inventory Management
      Outsourcing and Vendor Development
      Corporatisation
      Challenges from the Private Sector
      Conclusion

    3. Defence Public Sector Undertakings
      An Overview
      From Nomination to Competition
      Defence Procurement: Share of DPSUs
      Indirect Import
      Vendor Development and Outsourcing
      R&D and Technology Assimilation
      Value Addition
      Labour Productivity
      Analysis of Profit Margin
      Exports
      Disinvestment and Listing on Stock Exchanges
      Conclusion

    4. The Private Sector
      Why Private Sector in Defence Production
      Defence Production: The Role and Scope of the Private Sector
      Private Sector’s Contribution to Capital Acquisition
      What has Hindered Private Sector’s Participation
      Can the Make in India Initiative Save the Private Sector?
      Conclusion

    5. Defence Research and Development Organisation (DRDO)
      DRDO: Origin and Growth
      DRDO’s Performance: An Overview
      DRDO’s Performance: A Critique
      Defence R&D: The Problem Areas
      Conclusion

    6. Offsets
      Evolution of Defence Offset Policy
      Part I
      Impact Analysis

      Part II
      Lessons from International Practices
      Conclusion1

    7. Review of Policy Recommendations
      Group of Ministers
      Kelkar Committee
      Sisodia Committee
      Rama Rao Committee
      V.K. Misra Committee
      Dhirendra Singh Committee

    8. An Agenda for Make in India
      Set up a Make in India Council within MoD
      Articulate an R&D and Manufacturing Plan
      Appoint an Additional Secretary within the DDP for thePrivate Sector
      Reform the OFs and DPSUs
      Revitalise DRDO
      Provide Conducive Financial and Procurement Framework tothe Private Sector
      Streamline Defence Offset Policy
      Curb Indirect Import
      Involve the Industry in the Formulation of QualitativeRequirements (QRs)

    ANNEXURES

    Annexure A - DPP-2016: An Overview173

    Annexure B - Strategic Partnership: An Overview of the Aatre Task ForceReport183

    Annexure C - Foreign Investment Proposals Approved in Defence Sector (As on July 2015)187

    Annexure D - Details and Status of Major Ongoing Projects(Cost above Rs. 100 crore) of DRDO

    Index

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