Whither the Indo-US Defence Partnership
India appears to be failing to consider the geopolitical and foreign policy fallouts from signing the so-called foundational military pacts with the United States.
- P. Stobdan
- June 25, 2018
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:
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India appears to be failing to consider the geopolitical and foreign policy fallouts from signing the so-called foundational military pacts with the United States.
Mutual and shared interests between India and the US must form the basis of an enduring solution to the quandary presented by the provisions of the Countering America’s Adversaries through Sanctions Act.
While the provisions of the Countering America’s Adversaries through Sanctions Act (CAATSA) are unlikely to be imposed on India anytime soon, it is nonetheless likely to prove a dampener on an otherwise booming defence relationship between India and the United States.
The Cell will remain hamstrung if its powers are not clearly defined, especially in regard to securing budgetary support which is to be provided by the Director General of Quality Assurance.
With the powerful DPC in place and the NSA assuming the role of de facto CDS for all practical purposes other than in operational matters, the defence planning process is expected to become more rational and provide a boost to defence preparedness.
Objectives and resources have to be in sync with each other and if adequate resources cannot be provided objectives have to be suitably recalibrated and alternative ways found to achieve them.
The challenge lies in demonstrating to potential importers that India, currently the world’s largest arms importer, has the capacity to manufacture and export the equipment required by their armed forces.
The Draft Defence Production Policy 2018, which aims to promote the Make in India initiative in the defence sector and create a world-class arms manufacturing base, faces a number of challenges, which, if left unaddressed, may limit its usefulness.
The promises contained in the recently released draft are so intertwined that a comprehensive action plan would be required to implement all of them almost simultaneously for achieving the policy objective.
The new system of classifying enterprises based on annual turnover will be more reliable, transparent and objective as the qualifying criteria will be verifiable with reference to the data available in the Goods and Services Tax network.