Indian industry, which is the intended beneficiary of this preference policy, needs to play a proactive role in facilitating the smooth implementation of the order.
Why the objective sought to be achieved through the strategic partnership scheme could not be attained by resorting to an existing provision in DPP 2016?
While developing critical defence technologies has undeniable benefits, their acquisition through Transfers of Technology brings numerous complexities and eventually may deliver limited benefits.
The formal inclusion of the Munitions List within the SCOMET framework explicitly brings the defence industry under the purview of India’s global commitment to non-proliferation.
There seems to be no clear advantage of giving an overarching role to the Ministry of Home Affairs as regards formulation of policy or grant of industrial licence for manufacture or export of defence items.
The objective of promoting Indian industry can be achieved in a simpler manner if after selecting the platform to be inducted MoD leaves it to the foreign OEM to tie up with the Indian company of its choice.
The new enabling provision in GFR-2017 provides the MoD a chance to amend its own procurement document and include a provision of production reservation and price preference for domestic industry.
It would be both graceful and fair to pay a reasonable amount that is seen as equitable compensation for infringement of the fundamental right to life or damages arising from tortious liability of the government.
While there is no doubt that India could do with help from Japanese defence firms, the modality of acquiring technologies from foreign companies in general requires to be clearly articulated.
DIPP Accords Preference to Local Suppliers in Public Procurement
Indian industry, which is the intended beneficiary of this preference policy, needs to play a proactive role in facilitating the smooth implementation of the order.