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 Economic 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. In this brief period, the Centre has organised over 10 events, including a major international seminar on Defence Acquisition in July 2011. Presently the Centre is preparing a Detailed Project Report (DPR) for the Ministry of Defence for setting up a Defence Acquisition Institute in India.
Major Focus Areas of the Centre includes:
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February 23, 2014
The 10 per cent growth in the interim defence budget although looks impressive from outside, it has a poor outlook on the modernisation front. Much of the hike in the interim budget is consumed by the increase in salary, leaving very little to meet the defence modernisation requirements.
February 14, 2014
Projecting a demand which cannot be met is as pointless as allocating budget that is barely sufficient to sustain the armed forces and other departments of the MoD. The persistent neglect of this aspect of defence management is taking its toll not only on the stock of ammunition held by the armed forces, notably the Army, but also on serviceability levels of the equipment.
February 4, 2014
It is commonly viewed that in an election year, the incumbent government is tempted to present a populist budget. In that scenario, the MoD would have reasons to be unhappy, particularly so when the modernisation requirement of the armed forces has reached a stage which is now contingent upon substantial additional resources to remain on course.
January 22, 2014
The Defence Procurement Procedure 2013, as also its earlier versions, does not define an Indian company. Some would argue that the answer is very simple: any entity registered in India under the Companies Act, 2013 or any other relevant statute and operating with a valid license, where such a license is required, qualifies as an Indian company, enterprise, institution or establishment.
The Occasional Paper examines India's defence innovation performance, especially of the Defence Research and Development Organisation (DRDO) and the defence industry. The paper argues that the innovation performance of these two players is constrained by lack of a higher organisational structure which could provide direction and required thrust to the indigenous R&D.
January 6, 2014
While there was perhaps no option for the MoD but to do what it has done, it would be naive to expect the seller to acquiesce in forfeiture of the bank guarantees, recovery of the sums allegedly paid in violation of the PCIP (assuming that it will be possible to recover this amount) and to simply take the three helicopters back without demur.
December 3, 2013
This programme was a sincere effort by the MoD to walk the talk on participation of the private industry in defence manufacturing. The success or failure of this programme will have a long lasting effect on MoD’s efforts to strengthen the defence industrial base in the country.
October 31, 2013
The avro replacement is not a design and development programme which will involve extensive use of the airfields for test flights. It is an aircraft that is already flying and will be built as per the OEM’s specifications that will go into manufacture of the aircraft in India.
October 15, 2013
India-US defence ties are shifting away from a ‘buyer-seller’ path to one of co- development and co-production. In Washington this is viewed as a change from a ‘culture of presumptive no to one of presumptive yes’.
October 3, 2013
The services will have no option but to reduce the allocation under the heads where the impact is not immediately visible: maintenance of infrastructure, purchase of spares for maintenance of equipment, procurement of ammunition, etc.