Defence Industry

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  • Fog clears over industrial licensing for defence industry but questions remain

    There seems to be no clear advantage of giving an overarching role to the Ministry of Home Affairs as regards formulation of policy or grant of industrial licence for manufacture or export of defence items.

    May 29, 2017

    Need for incorporating a limitation of liability clause in defence contracts

    It would be both graceful and fair to pay a reasonable amount that is seen as equitable compensation for infringement of the fundamental right to life or damages arising from tortious liability of the government.

    May 17, 2017

    Raising Defence Budget to Three Per Cent of GDP

    Speaking at the United Service Institution on May 4, 2017, the Chief of the Army Staff said that India needs to spend much more on military modernisation to ensure that economic growth continues unhindered.

    May 08, 2017

    Defence Expenditure: A Challenge for Defence Economists

    The basic challenge for defence economists is to demonstrate that there are other feasible ways of skinning the cat during budget formulation. But the challenge is also inextricably linked with the need for rationalisation of defence expenditure.

    March 14, 2017

    ALH Dhruv and the Indian Helicopter Industry: Unrealised Potential, Promises and Challenges

    For more than half a century, independent India’s aircraft manufacturing has been dominated by, and entirely limited to, Hindustan Aeronautics Limited (HAL). The helicopter, in particular, was seen almost exclusively as a platform of military utility. Therefore, other than the defence forces, paramilitary and a few state governments, civilian use of helicopters was almost unheard of until recently. Commencing from the 1990s, awareness about the utility of helicopters for civilian use increased rapidly due to its widespread use by political parties during elections.

    January 2017

    India’s Defence Budget 2017-18: An Analysis

    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.

    February 03, 2017

    HAL’s Gamble – Will the “Advanced Hawk” break into the Export market?

    On 5 February 2017, a version of the Hawk Advanced Jet Trainer (AJT) was unveiled. The aptly-named “Advanced Hawk” is a joint-venture between BAE Systems and Hindustan Aeronautics Limited (HAL). It has been developed using internal funds on an equal risk basis and offers significant enhancement of the capabilities of the basic Hawk AJT.

    February 13, 2017

    India’s Defence Budget 2017-18: Should Alarm Bells Ring?

    The share of defence expenditure in 2016-17 has gone below the levels it was in 1955-56. In 2017-18 it will go down to 1.557 per cent of GDP.

    February 10, 2017

    Defence Budget 2017-18: Chugging Along

    Budget is not just all about figures but also a statement of policy. The Defence Budget for 2017-18 contains no hint of any intention of the government to bring about a paradigm shift in the defence policy.

    February 02, 2017

    BEML Disinvestment: What about the other DPSUs and OFs?

    The BEML model of disinvestment needs to be applied to the rest of the Defence Public Sector Undertakings as well as Ordnance Factories.

    January 20, 2017

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