Reforming defence pension is no more an option but a compulsion considering its exponential growth in the past, which is likely to continue in the future if no reform is undertaken.
Considering that the defence capital expenditure already accounts for a very high share in the central government’s overall capital spend, any substantial hike in the former’s share looks less likely. This is more so given the government’s priority to spend on infrastructure and other non-defence capital assets to revive the economic growth.
Having decided to create the post of CDS, the next logical step for the government is to define its charter of duties and responsibilities. The government needs to examine not just the CDS’s role as a single-point military advisor, but also his role in other matters that are equally important in driving critical defence reforms.
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.
Research Fellow, IDSA, Dr Laxman Behera’s article on the proposed corporatization of the Ordnance Factory Board (OFB), titled ‘Rebuilding ordnance factories’ has been published in Business Standard on August 30, 2019.
In a bold move, the government has floated a proposal to corporatise the Kolkata-headquartered Ordnance Factory Board (OFB), under which there are 41 factories with combined manpower strength of over 82,000, writes Dr Behera.
With the latest Union budget keeping the MoD interim allocation unchanged, the MoD has an uphill task in managing its resources and in funding its modernisation programmes.
Research Fellow, IDSA, Dr Laxman Behera’s article on defence allocation in the new budget, titled, ‘Economic Situation to Weigh Heavily on Resource Allocation Decisions’ has been published by NDTV Profit on June 18, 2019.
The difficult situations that the economy is presently going through will weigh heavily on Finance Minister Nirmala Sitharaman’s resource allocation decisions, writes Dr Behera.
Implementing the outlined 27 reform measures in four broad areas – Planning, Defence Budget, Acquisition and Make in India – would strengthen defence preparedness and build a credible defence industrial base.
India needs a comprehensive space security architecture consisting of a dedicated Space Command for operational aspects as well as an exclusive Defence Space Research Agency to focus on scientific and technical aspects.
Defining the Charter of Chief of Defence Staff
Having decided to create the post of CDS, the next logical step for the government is to define its charter of duties and responsibilities. The government needs to examine not just the CDS’s role as a single-point military advisor, but also his role in other matters that are equally important in driving critical defence reforms.