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

Viable Alternatives Required to Replace Existing Procurement Procedures

If existing procurement procedures are a hindrance in acquiring state-of-the-art defence materiel expeditiously, a case needs to be made out, based on demonstrable drawbacks of the existing system for a detailed blueprint of what system should replace it.

Amit Cowshish
August 10, 2021
IDSA Comments

Self-Reliance in Defence Sector

The Ministry of Defence has taken significant steps in recent times to boost domestic defence manufacturing and increase the role of the private sector to reduce dependence on imports and achieve self-reliance.

Richa Tokas
August 04, 2021
IDSA Comments

Who is Responsible for Defence of India?

Defence of India is a multi-dimensional responsibility involving coordination with not only organisations within MoD, but also several external departments and agencies. Irrespective of whether the subject of defence of India is assigned to DoD or DMA, it is the defence minister who is responsible for the subjects allocated to the ministry.

Indigenisation – In Need of Policy Framework

There is a need to formulate a composite policy that focuses on indigenisation in high priority technology areas, shedding the notion that it must necessarily result in savings. A more modest and focussed mission-mode approach to indigenisation can produce better results.

Promoting Defence Exports

India’s defence eco-system is indeed becoming more dynamic as it strives to achieve the tough defence exports targets.

Decoding Defence Acquisition Procedure 2020

The Defence Acquisition Procedure (DAP 2020), which supersedes the Defence Procurement Procedure 2016 (DPP 2016), is a sincere effort by the Ministry of Defence to improve the capital procurement procedure.

Amit Cowshish
November 20, 2020
Issue Brief

Other Capital Procurement Procedure: A Chip off the Old Block

The OCPP is a mix of revenue and capital procurement procedures, based on the Defence Procurement Manual 2006. It could have been an opportunity to lay down a more self-contained procedure.

Amit Cowshish
October 23, 2020
IDSA Comments

The Imperatives of Ordnance Factory Corporatisation

Poor workmanship, deteriorating quality issues, and lack of professionalism have plagued the workings of the Ordnance Factories. There is an imperative need for modernising the workings of the OFs through corporatisation.

Akhelesh Bhargava
September 30, 2020
IDSA Comments

Increase in FDI Cap Alone Not Enough for Defence Sector

Raising the FDI limit by itself may not enthuse the foreign investors as per the expectations. To make the defence sector more attractive for foreign investment, a whole lot of other related issues will have to be addressed by the government.

Amit Cowshish
September 14, 2020
IDSA Comments

Impact of Embargo on Defence Imports

It would be helpful if MoD issues a formal order addressing the concerns expressed by various stakeholders about certain aspects of the negative list, especially its impact on projects that involve foreign OEMs and the purpose of bifurcating the capital budget.

Amit Cowshish
August 14, 2020
IDSA Comments