While the provisions of the Countering America’s Adversaries through Sanctions Act (CAATSA) are unlikely to be imposed on India anytime soon, it is nonetheless likely to prove a dampener on an otherwise booming defence relationship between India and the United States.
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 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.
This Issue Brief highlights five major issues and concerns that may merit the SCoD’s attention while examining the latest Demands for Grants of the Ministry of Defence.
The United States (US) defence acquisition apparatus, arguably the biggest in the world, has undergone several reforms in the past 100 years. The reforms, which have focused on both structural and procedural aspects of acquisition, have led to establishment of authority and accountability in acquisition; articulation of a detailed regulatory mechanism; a dedicated university to impart training to acquisition workforce; and a clear incentive structure for the domestic industry.
The formal inclusion of the Munitions List within the SCOMET framework explicitly brings the defence industry under the purview of India’s global commitment to non-proliferation.
The new enabling provision in GFR-2017 provides the MoD a chance to amend its own procurement document and include a provision of production reservation and price preference for domestic industry.
While certain changes in the format of the defence Demand for Grants have brought even more complexity to the task of estimating India’s official defence budget, the fact remains that there has only been a meagre increase of 5 per cent which is grossly inadequate to keep the Armed Forces in fighting form.
Creation of Defence Planning Committee: A Step towards Credible Defence Preparedness
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.