The United States (US) defence acquisition apparatus, arguably the biggest in the world, has undergone several reforms in the past 100 years. The reforms, which have focused on both structural and procedural aspects of acquisition, have led to establishment of authority and accountability in acquisition; articulation of a detailed regulatory mechanism; a dedicated university to impart training to acquisition workforce; and a clear incentive structure for the domestic industry.
The formal inclusion of the Munitions List within the SCOMET framework explicitly brings the defence industry under the purview of India’s global commitment to non-proliferation.
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.
While certain changes in the format of the defence Demand for Grants have brought even more complexity to the task of estimating India’s official defence budget, the fact remains that there has only been a meagre increase of 5 per cent which is grossly inadequate to keep the Armed Forces in fighting form.
The biggest lesson that India can borrow is France’s integrated and centralised procurement structure, which has the dual responsibility of arms acquisition and defence industrial development.
It is rare that a foreign company makes a huge investment to produce major platforms in a third country with a view to make that country an export hub.
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.
Changes in the SCOMET List: What it means for the Indian Defence Industry
The formal inclusion of the Munitions List within the SCOMET framework explicitly brings the defence industry under the purview of India’s global commitment to non-proliferation.