In the Union Budget 2023–24, the estimated allocations for the Ministry of Defence (MoD) are Rs 5,93,537.64 crores, an increase of 13 per cent over BE 2022–23 (Rs 5,25,166.15 crores).
Amit Cowshish replies: As the first step, the Ministry of Defence (MoD) needs to formulate a composite policy that focuses on the indigenisation of high priority technology areas, shedding the notion that it must necessarily result in savings. The commercial viability of the identified projects and institutional arrangement for financing them, apart from a mechanism to accommodate the cost of failed efforts, must form the bedrock of the policy.
Amit Cowshish replies: Broadly speaking, there are four reasons for the low level of indigenisation in defence products. The primary reason is the absence of a pragmatic overarching policy which, apart from defining the term ‘indigenisation’ which is presently interpreted in different ways, also recognises that indigenisation cannot always result in savings, especially in areas like development of special alloys and critical technologies which do not offer economy of scales.
The Defence Planning Committee needs to activate its ‘Plan and Capability Development’ Sub-committee and task them to review the 13th Defence Plan in a time bound manner.
This Brief offers an overview of India’s long established as well as more recent external defence and security priorities, and delineates the three options available to the Defence Planning Committee under the extant economic and geopolitical circumstances.
The Cell will remain hamstrung if its powers are not clearly defined, especially in regard to securing budgetary support which is to be provided by the Director General of Quality Assurance.
With the powerful DPC in place and the NSA assuming the role of de facto CDS for all practical purposes other than in operational matters, the defence planning process is expected to become more rational and provide a boost to defence preparedness.
The government decided to do away with the five year planning process in 2014. Therefore, there is no 13th plan. Despite this, MoD has gone ahead and formulated the 13th five year plan and submitted it to MoF for information only. Thus, the dilemma of defence planning and budget continues.
Defence Procurement: Negative Lists with Positive Implications
The defence indigenisation lists are expected to promote domestic arms manufacturing and reduce the burden of arms imports.