The government’s decision to allow the private sector to undertake the development of complex defence equipment is a step in the right direction. It will help forge a larger innovation system to meet the diverse requirements of national security. However, caution may be required to avoid duplication of efforts and prevent indirect import.

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 challenge lies in demonstrating to potential importers that India, currently the world’s largest arms importer, has the capacity to manufacture and export the equipment required by their armed forces.

The Draft Defence Production Policy 2018, which aims to promote the Make in India initiative in the defence sector and create a world-class arms manufacturing base, faces a number of challenges, which, if left unaddressed, may limit its usefulness.

The promises contained in the recently released draft are so intertwined that a comprehensive action plan would be required to implement all of them almost simultaneously for achieving the policy objective.

The benchmark price could be different from the initial cost estimate because, in many cases, the negotiation stage is reached several years after in-principle approval.

Sector-specific micro parameters that have a bearing on the ease of doing business need to be identified and quantified.