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

    The India-Israel Strategic Partnership

    • Publisher: Pentagon Press
      2022
    India and Israel marked three decades of the establishment of full diplomatic ties in January 2022. In the aftermath of the historic visit of Prime Minister Narendra Modi to Israel in July 2017, India-Israel relations have acquired a new momentum and strategic depth.

    Defence and security cooperation have been the mainstays of the partnership. The study notes that India is taking a series of measures to enhance domestic procurement and defence indigenization. Going forward, strategic partners like Israel will be expected to continue to work more closely with the domestic defence industry to fulfil the critical requirements of India’s armed forces.

    On reginal security issues like the Iranian nuclear contentions, India has adopted positions largely in opposition to the preferred Israeli policy preferences. India has, however, consistently held that it is opposed to the possibility of a nuclear Iran, given the negative repercussions for regional security and stability, as well as due to the Iran-Pakistan proliferation linkages.

    India’s Palestine policy, meanwhile, will continue to be guided by its core principles on the issue, even as the possibility of an independent Palestinian state, living side by side with Israel, looks difficult to materialize in the near to mid-terms. This is even as the schisms within the Palestinian national movement look set to expand in the post-Mahmoud Abbas era.

    The book brings to attention the dynamic path India-Israel relations have traversed in the past three decades, encompassing areas of defence and security and high-technology cooperation. New vistas of engagement are being pursued by both countries, bilaterally as well as with other countries. The first I2U2 Summit meeting held between the leaders of India, Israel, the UAE and the US in July 2022 emphasized the geo-economic focus of the unique mini-lateral group. An India-Israel enhanced strategic partnership is a win-win proposition, bilaterally and across regions.

    • ISBN: 978-93-90095-70-4 ,
    • Price: ₹ 995
    • E-copy available
    2022

    The India-Israel Defence and Security Partnership At 30

    Defence and security cooperation have been the mainstays of the India-Israel strategic engagement. The Monograph places in perspective these aspects of the relationship, three decades into the establishment of full diplomatic ties. The study notes that India is taking a series of measures to enhance domestic procurement and defence indigenization.

    2022

    Best Practices in Financial Management: Accrual Accounting for Defence

    Changes in public financial management across the globe have necessitated India to revisit its traditional methods of managing and depicting its public finances. One of the major changes envisaged is a quest to migrate gradually to accrual accounting from the traditional cash-based accounting.

    2019

    Transfer of Defence Technology: Understanding the Nuances and Making it Work for India

    • Publisher: KW Publishers
      2019
    In recent years, transfer of defence technology to India, as an alternate route to indigenous development, has been frequently brought up with widely varying views from the Indian defence technology fraternity. Some lament its failure to help India achieve self-reliance, while others suggest it can enable India to leapfrog ahead. While it has been paradoxically found to be more expensive than outright purchase of defence systems, there are indications that countries such as Israel, South Korea and China have gained immensely from it. While there has been a flood of ToT proposals from foreign OEMs after the launch of the Make in India initiative, there have been few proposals which have materialised and a miniscule number successfully implemented. Acknowledging the need to unravel these mysteries, this book attempts to throw light on the entire range of connected aspects from a brief historical perspective to an understanding of its fundamentals and nuances, to how ToT should be aligned with national goals and there on to its implementation issues. Initially addressing the conventional mode and its complexities, it expands to touch upon the others, then the unconventional ones, the facilitators such as offsets and the transaction in its widest sense. Thus enveloping the complete spectrum, it brings its insights together to converge on a possibly successful arrangement for India. Written in an explorative, questioning style, this book will intrigue interested readers and propel the Indian defence technology community to dwell on its findings and suggestions for the formulation of a cogent way forward.
    • ISBN: 978-93-89137-17-0,
    • Price: ₹.980/-
    • E-copy available
    2019

    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.

    • ISBN 978-81-8274-905-4,
    • Price: ₹. 995
    • E-copy available
    2016

    India’s Defence Expenditure: A Trend Analysis

    This article examines India’s defence expenditure over the past ten years. In so doing, it provides a public finance perspective to explain the recurring resource crunch being faced by the Ministry of Defence (MoD). The article reasons that a substantial augmentation of resources for the MoD in the past has faced stiff barriers due to lack of tax buoyancy and also the political, economic and other exigencies that have led to greater public spending outside the traditional areas of expenses, including defence.

    September 2021

    Enhancing the Effectiveness of Defence Indigenization: The Case of Bullet-Resistant Jackets

    Post-COVID, the renewed emphasis on indigenisation in India calls for a fresh, in-depth examination of the entire range of issues and policies pertaining to the development of a capable domestic base for the defence industry and technology.

    November 2020

    India–US Defence Cooperation: Assessing Strategic Imperatives

    Over the last decade or so, especially during much of Barack Obama’s presidential tenure, the defence sector has become the focus area of cooperation between India and the US. India’s engagement with the US in the area of defence is riding on a new-found realism that drives both countries’ strategic aspirations.

    January 2018

    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

    The Indian Navy and Maritime Security in the Red Sea

    The Indian Navy has played a vital role in securing maritime trade routes in the Red Sea.

    February 19, 2024

    Defence Budget 2024-25: Trend Analysis

    The budget estimates for the Ministry of Defence (MoD) for 2024-25 are Rs 621,540.85 crore, constituting 13.04 percent of the total Union Budget and 4.7 per cent higher than BE 2023-24.

    February 16, 2024

    Drones for Surveillance to Strikes: Assessing the Impact through the Lens of Russia–Ukraine War

    The Russia–Ukraine War has witnessed a significant surge in the use of drones for surveillance and strikes.

    January 24, 2024

    IDF’s Subterranean Challenge: Profiling Gaza Metro, Hamas’s Centre of Gravity

    The subterranean infrastructure is the pivot of Hamas’s irregular warfare strategy and allows it to undertake both offensive and defensive operations and has been assessed as one of its centres of gravity.

    December 28, 2023

    Tehreek-e-Taliban Pakistan: Unravelling Pakistan’s Enduring Threat

    The 4 November 2023 attack on the Pakistan Air Force base by an affiliate of the TTP highlights the threat posed by the group to the Pakistani state.

    November 16, 2023

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