Today, we are facing a serious challenge in trying to cope up with a rising China and in that effort we have very many disadvantages. The Chinese have a developed infrastructure on their side which we have failed to develop on our side. The Chinese have a much higher GDP, have a better developed, modernized military, and perhaps higher level of technology. Under these circumstances we have got to look for factors in our favour in the international situation which we could exploit in order to cope up with the Chinese challenge. Yes, there are.

The present defence procurement and management structures in the Ministry of Defence were set up in 2001 in terms of the recommendations of the Group of Ministers on reforming national security system constituted in the wake of the Kargil conflict. The GOM recommended setting up of an acquisition wing with the task of expediting the acquisition of capital equipment required for the modernisation programmes of the three Services.

Acquisition efficiencies represent the most vital element in India's quest for optimal defence capability build up in the desired time and cost horizons. The focused attention bestowed by MOD and Services Headquarters in recent years on this critical theme is a clear assertion of the country's resolve to acquire full spectrum military strength over the next 15-20 years.

Our defence forces require timely and cost effective acquisition of defence equipment to enable them to meet any challenge to the country's security. Especially all of you who represent the strategic community know very well that we are living in an era of challenges from many quarters. The emerging security scenario is very challenging. Nobody can say what will happen in some of our neighbouring areas. The situation is that critical.