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

CDS: A Pragmatic Blueprint Required for Implementation

The blueprint for the operationalisation of CDS would require intensive deliberation to make sure that no aspect of its implementation is left unaddressed.

Amit Cowshish
August 30, 2019
IDSA Comments

In Favour of Corporatisation of Ordnance Factory Board

As a corporatised entity, the OFB will be in a far better position to respond to the market dynamics and face the competition effectively.

C2D2: An Agile Defence Acquisition Model

The agile acquisition or C2D2 model currently under adoption by the US for its F-35 aircraft is likely to become a necessity for acquisitions in future, as disruptive defence technologies will continue to affect military systems across the world.

Atul Pant
August 06, 2019
IDSA Comments

Can Fifteenth Finance Commission Resolve Funding Problems of Defence?

Even if the Fifteenth Finance Commission manages to make a specific recommendation about the funds to be allocated for defence and internal security and the government accepts the recommendation, there can be no guarantee that the actual allocation will not fall short of the accepted level.

No Further Increase in Defence Outlay: Need to Move On

It would be nice to see the defence ministry setting up a task force and submitting actionable recommendations which could be considered by the finance minister while deciding the defence outlay next year.

India’s Defence Budget 2019-20

With the latest Union budget keeping the MoD interim allocation unchanged, the MoD has an uphill task in managing its resources and in funding its modernisation programmes.

Defence Agenda for Modi Government 2.0

Implementing the outlined 27 reform measures in four broad areas – Planning, Defence Budget, Acquisition and Make in India – would strengthen defence preparedness and build a credible defence industrial base.

Design and Development of Equipment by DRDO, DPSUs and Ordnance Factories

There is a need to make it clear in the text of Paragraph 72 of DPP 2016 that no vendor other than the Development-cum-Production partner or the nominated Production Agency will be permitted to enter the tendering process at the post prototype development stage.

Fallibility of the Fall Clause

While the purpose of the Fall Clause, a price safety mechanism in rate contracts, is indubitable, some issues concerning its applicability and implications, both for the buyer and the seller, merit a review.

Mission Shakti: What Next?

India needs a comprehensive space security architecture consisting of a dedicated Space Command for operational aspects as well as an exclusive Defence Space Research Agency to focus on scientific and technical aspects.