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

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

Atma Nirbhar through Arms Import Ban

The negative list of embargoed defence items is one more step towards creating a strong domestic arms industry and making India self-reliant in defence production.

Atma Nirbhar through Canteen Sales

Banning the sale of imported items through the CSD could supplement the various domestic industry-friendly policy measures being taken by the government for a self-reliant India.

Atma Nirbhar in Defence Technology

While the steps stipulated in draft DAP-2020 to enable smooth acquisition of systems indigenously designed by DRDO and other public sector entities are a right move, they need to be strengthened further to make procedures more robust and conducive for timely completion of projects.

Should MoD Persist with Defence Offsets?

The changes proposed in the offset guidelines require a fresh look, both on conceptual and empirical grounds, as the new regime is likely to yield diminishing returns.

Amit Cowshish
August 07, 2020
IDSA Comments