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

India’s Defence Budget 2011-12

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.

Defence Budget 2011-12 should go beyond Fiscal Austerity

Ground reality rather than fiscal prudence should guide the Finance Minister while finalising the defence budget for 2011-12.

A Critical Review of Defence Procurement Procedure 2011

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.

Laxman Kumar Behera
January 25, 2011
Issue Brief

An American Solution to India’s Defence Acquisition Problem?

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.

Defining a New Conceptual Framework: Defence Economic Infrastructure

If basic equipment shortfalls that the defence sectors face are to be addressed, then Indian defence planners need to use the DEI framework to create solution models.

Varun Bhaskar
September 20, 2010
IDSA Comments

Dynamics of Rules and Regulations in Defence

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.

Food for Thought: Optimising Defence Spending

While India’s latest defence budget has no doubt catered for a sizeable capital component, it may be prudent to reduce costs by switching to more affordable programmes.

Advantages of including Munitions Items in the SCOMET List

Unless the SCOMET list includes munitions items, and is harmonised with the Wassanaar Agreement list, India will be unable to get the full benefits of international commerce in defence goods.

Defence Budgetary Allocation 2010-11: Adequacy vs. Usage

Adequacy or inadequacy of defence allocation largely lies in the manner it is spent keeping in view the defence requirements for meeting operational and strategic goals and to have the needed defence preparedness to deal with threats.

Narinder Gupta
March 18, 2010
IDSA Comments

Budgeting for India’s Defence: An Analysis of Defence Budget 2010-11 and the Likely Impact of the 13th Finance Commission on Future Defence Spending

If the Finance Ministry’s emphasis on fiscal prudence and inclusive growth has resulted in a smaller increase in the latest defence budget, the Report of the Thirteenth Finance Commission does not paint a very optimistic scenario for India’s future defence spending.