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

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    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

    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.

    • ISBN 978-81-8274-892-7,
    • Price: ₹. 1295
    • 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

    Applicability of CVC Guidelines to Defence Procurement

    Given that the Department of Expenditure will henceforth be the nodal department for issuing procurement related instructions in future, the Ministry of Defence must institute a system to promptly incorporate them in the MoD procurement manuals.

    August 29, 2022

    Issues in Co-Development and Co-Production of Defence Equipment

    The success of the co-development-cum-production push in Defence Acquisition Procedure 2020 would depend on the commercial viability of the co-developed product, apart from overcoming a host of conceptual and procedural challenges.

    August 17, 2022

    Budgetary Reforms: The Forgotten Agenda

    Micro and macro-level budgetary reforms are required to ensure optimum utilisation of the allocated resources for executing financially viable plans.

    August 02, 2022

    US and EU Sanctions on Russian Defence Industry

    US and EU sanctions against key Russian arms producing firms, design bureaus and export organisations have had significant implications for Russian arms importing nations.

    July 25, 2022

    Ukraine’s Nuclear Disarmament Decision and Security Assurances

    Ukraine’s security predicament in the face of the Russian military onslaught brings into focus the vacuity of big power security assurances in the absence of legally binding security guarantees and treaty commitments.

    June 10, 2022

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