Defence Economics & Industry

About Centre

India spends a significant amount of resources on its national defence. Efficiency in utilisation of resources is not only an economic imperative but vital for defence preparedness. In view of this, the Defence Economics and Industry Centre was created in 2006 to promote research on various economic aspects of India’s defence. Since its inception, the Centre has undertaken a number of policy relevant studies besides constantly engaging vital stakeholders (Ministry of Defence, Armed Forces and Industry) on a range of issues. The major focus areas of the Centre are:

  • Defence Acquisition

    • Organisational and procedural improvement
    • Offsets
  • Defence Industry

    • Self-reliance in Defence Production
    • Efficiency of Defence Public Sector Undertakings/Ordnance Factory Board
    • Enhancing Private Sector Participation in Defence Production
  • Defence Research and Development
  • Defence Budget

Members:

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Rajneesh Singh Research Fellow (SS)
Arvind Khare Senior Fellow
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S. Samuel C. Rajiv Research Fellow
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Shayesta Nishat Ahmed Research Analyst
Rahul Wankhede Research Analyst

The India-Israel Strategic Partnership

  • Publisher: Pentagon Press
India and Israel marked three decades of the establishment of full diplomatic ties in January 2022. In the aftermath of the historic visit of Prime Minister Narendra Modi to Israel in July 2017, India-Israel relations have acquired a new momentum and strategic depth.

Defence and security cooperation have been the mainstays of the partnership. The study notes that India is taking a series of measures to enhance domestic procurement and defence indigenization. Going forward, strategic partners like Israel will be expected to continue to work more closely with the domestic defence industry to fulfil the critical requirements of India’s armed forces.

On reginal security issues like the Iranian nuclear contentions, India has adopted positions largely in opposition to the preferred Israeli policy preferences. India has, however, consistently held that it is opposed to the possibility of a nuclear Iran, given the negative repercussions for regional security and stability, as well as due to the Iran-Pakistan proliferation linkages.

India’s Palestine policy, meanwhile, will continue to be guided by its core principles on the issue, even as the possibility of an independent Palestinian state, living side by side with Israel, looks difficult to materialize in the near to mid-terms. This is even as the schisms within the Palestinian national movement look set to expand in the post-Mahmoud Abbas era.

The book brings to attention the dynamic path India-Israel relations have traversed in the past three decades, encompassing areas of defence and security and high-technology cooperation. New vistas of engagement are being pursued by both countries, bilaterally as well as with other countries. The first I2U2 Summit meeting held between the leaders of India, Israel, the UAE and the US in July 2022 emphasized the geo-economic focus of the unique mini-lateral group. An India-Israel enhanced strategic partnership is a win-win proposition, bilaterally and across regions.

  • ISBN: 978-93-90095-70-4 ,
  • Price: ₹ 995
  • E-copy available

Transfer of Defence Technology: Understanding the Nuances and Making it Work for India

  • Publisher: KW Publishers
In recent years, transfer of defence technology to India, as an alternate route to indigenous development, has been frequently brought up with widely varying views from the Indian defence technology fraternity. Some lament its failure to help India achieve self-reliance, while others suggest it can enable India to leapfrog ahead. While it has been paradoxically found to be more expensive than outright purchase of defence systems, there are indications that countries such as Israel, South Korea and China have gained immensely from it. While there has been a flood of ToT proposals from foreign OEMs after the launch of the Make in India initiative, there have been few proposals which have materialised and a miniscule number successfully implemented. Acknowledging the need to unravel these mysteries, this book attempts to throw light on the entire range of connected aspects from a brief historical perspective to an understanding of its fundamentals and nuances, to how ToT should be aligned with national goals and there on to its implementation issues. Initially addressing the conventional mode and its complexities, it expands to touch upon the others, then the unconventional ones, the facilitators such as offsets and the transaction in its widest sense. Thus enveloping the complete spectrum, it brings its insights together to converge on a possibly successful arrangement for India. Written in an explorative, questioning style, this book will intrigue interested readers and propel the Indian defence technology community to dwell on its findings and suggestions for the formulation of a cogent way forward.
  • ISBN: 978-93-89137-17-0,
  • Price: ₹.980/-
  • E-copy available

Indian Defence Industry: An Agenda for Making in India

  • Publisher: Pentagon Press

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.

  • ISBN 978-81-8274-905-4,
  • Price: ₹. 995
  • E-copy available

Indigenisation: Key to Self-Sufficiency and Strategic Capability

  • Publisher: Pentagon Press

The book attempts to study the defence industrialisation process that has been adopted by the militarily developed and developing nations to analyse, orient and adapt their best practices to the Indian defence industry and technological base. The analysis reveals that there is a requirement to re-assess, re-align & re-model the Indian defence industry apparatus in line with the vision of accelerating indigenisation, self-sufficiency and strategic capability, as pertaining to military systems.

  • ISBN 978-81-8274-892-7,
  • Price: ₹. 1295
  • E-copy available

Core Concerns in Indian Defence and the Imperatives for Reforms

  • Publisher: Pentagon Press

India's current defence imperatives transcend the ideeological 'defence vs. butter' debate. Even while there may be no profound existential concerns, the geo-political reality of a deeply troubled neighbourhood, long legacy of border disputes with neighbours in the north and west and a widening spectrum of potential warfare from conventional and strategic to the asymmetric can be ignored at our own peril.

  • ISBN 978-81-8274-818-7,
  • Price: ₹. 1095/-
  • E-copy available

Synergising Quality Assurance for Speedy Defence Procurement and Ensuring Quality

The Directorate General of Quality Assurance (DGQA) is the organisation that is responsible for ensuring the quality of a wide range of military hardware at the time of their procurement. This is a very old organisation and has evolved over a period of time to meet the aspirations of its customers. However, since the introduction of Defence Procurement Procedure it has invited lot of criticism from its users due to the delays caused in procurements and attributable to Quality Assurance (QA), as also the introduction of sub-standard equipment in service.