Defence Industry

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  • Increase in FDI Cap Alone Not Enough for Defence Sector

    Raising the FDI limit by itself may not enthuse the foreign investors as per the expectations. To make the defence sector more attractive for foreign investment, a whole lot of other related issues will have to be addressed by the government.

    September 14, 2020

    Impact of Embargo on Defence Imports

    It would be helpful if MoD issues a formal order addressing the concerns expressed by various stakeholders about certain aspects of the negative list, especially its impact on projects that involve foreign OEMs and the purpose of bifurcating the capital budget.

    August 14, 2020

    Atma Nirbhar through Arms Import Ban

    The negative list of embargoed defence items is one more step towards creating a strong domestic arms industry and making India self-reliant in defence production.

    August 13, 2020

    Refining Draft Defence Offset Guidelines 2020

    The draft offset guidelines 2020, with revamped features, is a bold attempt at attracting technology and investment as well as promoting defence exports. However, the MoD may consider further refining some of the features of the revised guidelines.

    June 08, 2020

    Defence Sector Reforms: A Long Haul

    Although the new measures announced to fast-track the defence sector are significant, they do not add up to a comprehensive and overarching reforms package.

    May 20, 2020

    Prabhjit Oberoi asked: How can coordination between DRDO and the Services be increased?

    Abhay Kumar Singh, D.P.K. Pillay and Kishore Kumar Khera reply: A robust indigenous defence industry is unarguably vital for India given its complex security environment and strategic challenges.

    Anil Sood asked: What are the rules regarding multiple bids for the same OEM in defence procurement?

    Amit Cowshish replies: The query is not very clear, but to answer it in broad terms, three specific paragraphs in the Defence Procurement Procedure 2016 have a bearing on the issue of multiple bidding.

    Vivek Singh asked: How is the future of Directorate General of Aeronautical Quality Assurance (DGAQA)? Is there a possibility of it being merged with some other department?

    Kishore Kumar Khera replies:: The Directorate General of Aeronautical Quality Assurance (DGAQA) under Department of Defence Production (DDP), Ministry of Defence (MoD) is the regulatory authority for Quality Assurance (QA) and final acceptance of military aircraft, unmanned aerial vehicles (UAVs), aero engines, airborne systems, avionics, armaments, consumables, allied ground systems and missiles during design & development, production, repair, modification and overhaul at various defence public sector undert

    Make-II: Need to Prevent Duplication of Efforts and Backdoor Entry of Import

    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.

    October 23, 2019

    Additional Allocation for Defence – A Challenging Task for MoF

    The government seems to have little fiscal space for accommodating the demand of the armed forces for additional funds, given its quantum on the one hand and the state of its revenues on the other which are already quite stressed.

    September 26, 2019

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