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

2015: A Year of Work-in-Progress for Defence

The issues confronting the defence establishment at the beginning of the year broadly related to defence policy, human resource management and operational preparedness.

Amit Cowshish
December 29, 2015
IDSA Comments

Make in India and the Expanding Scope for India-Japan Defence Cooperation

India’s defence modernisation presents enormous opportunities for the Japanese defence industry, which until recently concentrated exclusively on the domestic market in order to demonstrate Japan’s commitment to peace.

Titli Basu
December 29, 2015
IDSA Comments

Nature, Quantum & Components of Defence Expenditure and Defence Pensions

IDSA was tasked by the 7th Central Pay Commission in July 2014 to conduct a study on the “Nature, Quantum & Components of Defence Expenditure and Defence Pensions”. The study was carried out in accordance with the terms of reference provided by the Commission.

MP-IDSA
November 30, 2015
Special Feature

Restoration of Inherent Financial Powers of Defence Services

The MoD Order mentions that the IFAs are expected to give due attention to macro- management issues, highlighting the need for them to be involved in the planning and plan-review process. These are laudable objectives, but a well-knit mechanism for their implementation does not seem to exist at present.

Gautam Sen
November 12, 2015
IDSA Comments

Bugbears in MoD Guidelines on Handling of Complaints

The MoD guidelines on handling of complaints do not seem to be free from potentially crippling afflictions. Conceptual ambiguity can easily defeat the purpose of the guidelines.

Amit Cowshish
October 26, 2015
IDSA Comments

Indo-US Defence Cooperation: Harvesting Defence Technologies

There are no laid down procedures for procurement of technology per se. Existing procedures relate to procurement of equipment, weapons systems, platforms and other tangible capabilities.

Amit Cowshish
October 13, 2015
IDSA Comments

‘Make in India’ in Defence Sector: An Overview of the Dhirendra Singh Committee Report

While making a host of recommendations, the Dhirendra Singh Committee has been cautious in assessing their impact on the domestic industry.

Laxman Kumar Behera
September 16, 2015
Issue Brief

Exchange Rate Variation in Defence Contracts

The 19th August amendment to the Defence Procurement Procedure of 2013 extends the provision of exchange rate variation to Indian vendors under all the procurement categories of capital acquisition.

Amit Cowshish
August 31, 2015
IDSA Comments

Defence Offset Guidelines – A Long Overdue Tweak

The 5th August amendment to the offset guidelines exemplifies how difficult it is to let go of unnecessary controls.

Amit Cowshish
August 27, 2015
IDSA Comments

On the Threshold of a New Procurement Regime

Recommendations that defence procurement be handled by the military brass, ministers stay out of defence deals, and an external procurement agency be set up to handle procurement and focus on indigenization are indeed extraordinary.