Defence Economics & Industry: Publications

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  • India’s Interim Defence Budget 2014-15: An Appraisal

    The 10 per cent growth in the interim defence budget although looks impressive from outside, it has a poor outlook on the modernisation front. Much of the hike in the interim budget is consumed by the increase in salary, leaving very little to meet the defence modernisation requirements.

    February 23, 2014

    What is choking the Indian defence budget?

    Projecting a demand which cannot be met is as pointless as allocating budget that is barely sufficient to sustain the armed forces and other departments of the MoD. The persistent neglect of this aspect of defence management is taking its toll not only on the stock of ammunition held by the armed forces, notably the Army, but also on serviceability levels of the equipment.

    February 14, 2014

    Run up to the Defence Budget 2014-15: Challenges to Modernisation

    It is commonly viewed that in an election year, the incumbent government is tempted to present a populist budget. In that scenario, the MoD would have reasons to be unhappy, particularly so when the modernisation requirement of the armed forces has reached a stage which is now contingent upon substantial additional resources to remain on course.

    February 04, 2014

    Indian Companies - Need for a Clear Definition

    The Defence Procurement Procedure 2013, as also its earlier versions, does not define an Indian company. Some would argue that the answer is very simple: any entity registered in India under the Companies Act, 2013 or any other relevant statute and operating with a valid license, where such a license is required, qualifies as an Indian company, enterprise, institution or establishment.

    January 22, 2014

    Defence Innovations in India: The Fault Lines

    The Occasional Paper examines India's defence innovation performance, especially of the Defence Research and Development Organisation (DRDO) and the defence industry. The paper argues that the innovation performance of these two players is constrained by lack of a higher organisational structure which could provide direction and required thrust to the indigenous R&D.

    Cancellation of the VVIP Helicopter Contract: Beginning of a Long haul?

    While there was perhaps no option for the MoD but to do what it has done, it would be naive to expect the seller to acquiesce in forfeiture of the bank guarantees, recovery of the sums allegedly paid in violation of the PCIP (assuming that it will be possible to recover this amount) and to simply take the three helicopters back without demur.

    January 06, 2014

    Avro Replacement Programme: Alive and Kicking

    This programme was a sincere effort by the MoD to walk the talk on participation of the private industry in defence manufacturing. The success or failure of this programme will have a long lasting effect on MoD’s efforts to strengthen the defence industrial base in the country.

    December 03, 2013

    Avro replacement Programme on the Cusp of Hope and Despair

    The avro replacement is not a design and development programme which will involve extensive use of the airfields for test flights. It is an aircraft that is already flying and will be built as per the OEM’s specifications that will go into manufacture of the aircraft in India.

    October 31, 2013

    US-India Defence Technologies for Transfer: Cultural Change

    India-US defence ties are shifting away from a ‘buyer-seller’ path to one of co- development and co-production. In Washington this is viewed as a change from a ‘culture of presumptive no to one of presumptive yes’.

    October 15, 2013

    Cut in Non-plan Expenditure and Impact on Defence Budget

    The services will have no option but to reduce the allocation under the heads where the impact is not immediately visible: maintenance of infrastructure, purchase of spares for maintenance of equipment, procurement of ammunition, etc.

    October 03, 2013

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