It is necessary to evolve a long term strategy keeping in mind all the aircraft acquisition programmes, review the factors that contribute to determining the right numbers and begin the process of building a long term partnership with the private industry.
his Issue Brief examines certain provisions relating to intellectual property rights and transfer of technology in India’s defence procurement procedures, together with suggestions on streamlining the same for achieving enhanced procurement efficiencies in capital acquisitions.
The bad news in this year’s defence budget is that it does not recognise that things are not going in the right direction but only the beaten track. And the poor track record in fully utilising the resources allocated for ‘Modernisation’ is the worse news.
One area where the 2015-16 defence budget is likely to hurt the most is in capital acquisition, which has already been under acute pressure in recent years due to the overwhelming share of the ‘committed liabilities’ arising out of contracts already signed
This Brief analyses industry demands and reviews existing regulations in IT and defence procurement markets, culminating with suggestions on a possible way forward for reforms that can avoid adverse implications of industry demands, particularly in view of their potential conflict with important policies fostering indigenisation.
There has been much speculation since 2011 about who is going to manage the proposed fund, how is it to be different from the already existing technology related heads in the defence budget, and how will the amount set aside for the purpose be utilized.
There is an urgent need to conceptualise a policy framework as to what Make-in-India implies so far as defence production is concerned and how it is different from the existing policy framework.
While the government is widely seen as investor-friendly, investment decisions, however, are made on more tangible considerations – ease of doing business, security of investment and intellectual property rights, and returns on investment.
The national aim should be to make India a design, development, manufacture and export hub. India must study the Chinese concepts of “leap frogging” of technology across several generations and “civilianisation” to exploit dual use technology.
The ‘Make in India’ drive of Prime Minister Narendra Modi offers a way of improving the country’s self-reliance in defence production. But for the MII to succeed in the defence manufacturing sector, the government needs to address some legacy issues.
Defence Budget 2015-16: The Bad, the Worse and the Good
The bad news in this year’s defence budget is that it does not recognise that things are not going in the right direction but only the beaten track. And the poor track record in fully utilising the resources allocated for ‘Modernisation’ is the worse news.