Defence Economics & Industry: Publications

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  • Budgeting for India’s Defence: An Analysis of Defence Budget 2010-11 and the Likely Impact of the 13th Finance Commission on Future Defence Spending

    If the Finance Ministry’s emphasis on fiscal prudence and inclusive growth has resulted in a smaller increase in the latest defence budget, the Report of the Thirteenth Finance Commission does not paint a very optimistic scenario for India’s future defence spending.

    March 03, 2010

    Mahindra’s Giant Leap into Defence Production: The Need for Further Policy Initiatives to Promote Private Sector

    While Mahindra’s foray into defence production and the acquisition of foreign companies demonstrates the private sector’s initiative, the government needs to introduce further reforms to promote the role of private companies in Indian defence industry.

    December 22, 2009

    Avoiding Time and Cost Overruns in the Construction of Rohtang Tunnel

    The BRO could consider constituting a high level monitoring committee both at headquarters and on site to co-ordinate with the contractor, the consultant and other agencies to sort out issues that may have the potential to cause delay.

    December 14, 2009

    Defence Acquisitions: The Question of Systemic Inefficienices and Effectiveness

    The effectiveness of the procurement process needs to be viewed in context of the operational and structural readiness of the armed forces. If the existing framework proves to be weak and unable to deliver required levels of military preparedness, the framework may have to be re-laid for its effectiveness and deliverability.

    December 03, 2009

    Will Indian Defence Private Sector Deliver with Recent Policy Changes?

    With the growth of the public sector in Defence Production a large number of industrial units in the Private Sector has also grown with varied scales of operation in areas like outsourcing of raw materials, components, sub-systems, assemblies and sub-assemblies.

    November 24, 2009

    Acquisition Reform - Lessons from Bernard Gray

    If India does not modernize in an evenly spread out manner, it will be faced either with the prospect of its armed forces not being prepared, or rushing to make purchases amidst crises, or creating needless hysteria when frenzied modernization occurs.

    November 10, 2009

    Indian Defence Industry Poised to Grow

    Even as the new amendments incentivise domestic companies to enter defence production, the government has made it clear that it wants a competitive environment in defence industry.

    November 10, 2009

    Need for a Resource Generation and Management Cell in Defence

    The orientation of the existing administrative set up in Service Headquarters and in departments under the Ministry of Defence is to plan for the utilization of defence budget allocation. They are not in a position to pay attention to the aspect of defence receipts.

    November 05, 2009

    Economic Downturn: Options for MoD

    The present global economic crisis has slowed down the growth of the Indian economy, affecting among others, the fiscal situation and the revenue mobilisation potential of the central government. Defence being one of the largest recipients of central government expenditure, the present crisis casts a doubt on the adequacy of future resources. This commentary discusses some major options that India’s Ministry of Defence needs to consider in order to withstand the likely resource constraints in the coming years.

    May 26, 2009

    India’s Defence Budget 2009-10: An Assessment

    In its interim budget for 2009-10 the Union Government has allocated Rs. 1,41,703 crores for the country’ Defence Services that include three Armed Forces (i.e., the Army, the Navy and the Air Force), and other Departments, primarily Defence Research and Development Organisation (DRDO) and Defence Ordnance Factories. This is apart from Rs. 24,960 crores which have been earmarked to defray civil expenditures of Ministry of Defence (MoD) and its affiliated organisations, including, the Coast Guard, and for defence pension (Rs. 21,790 crores).

    February 18, 2009

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