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

Defence Budget 2020-21

The slowdown in economic growth not only seems to have cast its shadow on the allocation of the defence budget for 2020-21 but has also compounded the challenges for the country’s first CDS.

Vinay Kaushal
February 12, 2020
IDSA Comments

India’s Defence Budget 2020-21

Considering that the defence capital expenditure already accounts for a very high share in the central government’s overall capital spend, any substantial hike in the former’s share looks less likely. This is more so given the government’s priority to spend on infrastructure and other non-defence capital assets to revive the economic growth.

Laxman Kumar Behera
February 04, 2020
Issue Brief

Protocol for Contract Administration and Post-Contract Management

There is a need to evolve a protocol for contract administration and post-contract management of all capital and revenue contracts awarded by various departments of the defence ministry and the armed forces.

Amit Cowshish
November 25, 2019
IDSA Comments

Defining the Charter of Chief of Defence Staff

Having decided to create the post of CDS, the next logical step for the government is to define its charter of duties and responsibilities. The government needs to examine not just the CDS’s role as a single-point military advisor, but also his role in other matters that are equally important in driving critical defence reforms.

Make-II: Need to Prevent Duplication of Efforts and Backdoor Entry of Import

The government’s decision to allow the private sector to undertake the development of complex defence equipment is a step in the right direction. It will help forge a larger innovation system to meet the diverse requirements of national security. However, caution may be required to avoid duplication of efforts and prevent indirect import.

Additional Allocation for Defence – A Challenging Task for MoF

The government seems to have little fiscal space for accommodating the demand of the armed forces for additional funds, given its quantum on the one hand and the state of its revenues on the other which are already quite stressed.

Amit Cowshish
September 26, 2019
IDSA Comments

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.