Ten Imponderables in the Strategic Partnership Scheme
Why the objective sought to be achieved through the strategic partnership scheme could not be attained by resorting to an existing provision in DPP 2016?
- Amit Cowshish
- June 22, 2017
Why the objective sought to be achieved through the strategic partnership scheme could not be attained by resorting to an existing provision in DPP 2016?
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 SP model, if implemented well, is likely to have a number of benefits for both the private sector and the larger Indian defence industry.
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.
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.
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.
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.
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.
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.
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.



