Defence Economics & Industry
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  • About Centre

    India spends a significant amount of resources on its national defence. Efficiency in utilisation of resources is not only an economic imperative but vital for defence preparedness. In view of this, the Defence Economics and Industry Centre was created in 2006 to promote research on various economic aspects of India's defence. Since its inception, the Centre has undertaken a number of policy relevant studies besides constantly engaging vital stakeholders (Ministry of Defence, Armed Forces and Industry) on a range of issues. The major focus areas of the Centre are:

    • Defence Acquisition
      • Organisational and procedural improvement
      • Offsets
    • Defence Industry
      • Self-reliance in Defence Production
      • Efficiency of Defence Public Sector Undertakings/Ordnance Factory Board
      • Enhancing Private Sector Participation in Defence Production
    • Defence Research and Development
    • Defence Budget

    Members

    Indian Defence Industry: An Agenda for Making in India

    Indian Defence Industry: An Agenda for Making in India
    • Publisher: Pentagon Press

    This book thoroughly probes the Indian Defence industry and the policies pertaining to it. Based on hard core evidence, it identifies the key shortcomings of this vital sector and provides a detailed roadmap for the Modi government’s ambitious ‘Make in India’ programme to succeed in defence production sector. Though written with a clear focus on influencing policy making, the book is presented in an accessible format to be easily understood by the wider strategic community.

    2016

    Indigenisation: Key to Self-Sufficiency and Strategic Capability

    Indigenisation: Key to Self-Sufficiency and Strategic Capability
    • Publisher: Pentagon Press

    The book attempts to study the defence industrialisation process that has been adopted by the militarily developed and developing nations to analyse, orient and adapt their best practices to the Indian defence industry and technological base. The analysis reveals that there is a requirement to re-assess, re-align & re-model the Indian defence industry apparatus in line with the vision of accelerating indigenisation, self-sufficiency and strategic capability, as pertaining to military systems.

    2016

    Defence Offsets: International Best Practices and Lessons for India

    Defence Offsets: International Best Practices and Lessons for India

    The Monograph provides a comprehensive roadmap for reforming India’s defence offset policy which despite having gone through several rounds of revisions in past decade or so, still lacks effectiveness. The roadmap is based on extensive study of offset practices followed by six countries: Canada, Israel, Malaysia, South Korea, Turkey and the UAE.

    2015

    Core Concerns in Indian Defence and the Imperatives for Reforms

    Core Concerns in Indian Defence and the Imperatives for Reforms

    Publisher: Pentagon Press
    ISBN: 978-81-8274-818-7
    Price: Rs. 1095
    India's current defence imperatives transcend the ideeological 'defence vs. butter' debate. Even while there may be no profound existential concerns, the geo-political reality of a deeply troubled neighbourhood, long legacy of border disputes with neighbours in the north and west and a widening spectrum of potential warfare from conventional and strategic to the asymmetric can be ignored at our own peril.
    E-Copy available

    2014

    United States Reforms to Its Higher Defence Organisation: Lessons for India

    United States Reforms to Its Higher Defence Organisation: Lessons for India

    Democracies of the world have many similarities, notwithstanding the differences in the system of governance and the governmental structure. The decision making by the Higher Defence Organisation (HDO) and the government of the United States and India face similar challenges regardless of the threat perception and the role, size and the employment of the military.

    2014

    Defence Offsets: A System-Level View

    How effective are offsets as a means to boost a domestic defence industry? This article takes a novel approach to answering this question; examining global data on levels of defence sales over three decades as a measure of successful defence industrialisation (i.e., using the market as an indicator of success). The quantitative data points to a mixed picture as despite the ubiquity of defence offsets, they are no guarantees of success in defence industrialisation.

    July 2013

    A Perspective on Defence Planning in India

    The available literature on defence planning in India does not make for very encouraging reading. A few things stand out. Firstly, there is an acute dearth, if not almost complete absence, of authentic official accounts and analysis of what has gone on in the name of defence planning over the last six decades. Secondly, narratives based either on personal recollection or on opinions and views of those who have directly or indirectly been associated with defence planning at different points of time have filled this void. Others have chipped in too.

    July 2012

    India's Defence Offset Policy

    Although India has established a formal mechanism for implementation of the defence offset policy, the structure and procedures lack the thrust to fulfil the objective of energizing the Indian defence industry. Besides, the policy is not supported by the existing Foreign Direct Investment (FDI) and licensing policies. While evidence suggests that domestic industry can absorb offsets, what India needs is an effective body to handle offsets, liberal FDI and licensing policies, and a better banking provision.

    March 2009

    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

    Strategic Partnership Model – formulation of the scheme a big challenge

    The objective of promoting Indian industry can be achieved in a simpler manner if after selecting the platform to be inducted MoD leaves it to the foreign OEM to tie up with the Indian company of its choice.

    May 22, 2017

    Preference for Local Industry in Defence Contracts: What India Can Do

    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.

    May 22, 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

    Furthering India-Japan Defence Cooperation: Arun Jaitley indicates a new approach

    While there is no doubt that India could do with help from Japanese defence firms, the modality of acquiring technologies from foreign companies in general requires to be clearly articulated.

    May 15, 2017

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