Defence Economics & Industry

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

An Assessment of the Strategic Partnership Model in Defence Industry

The SP model, if implemented well, is likely to have a number of benefits for both the private sector and the larger Indian defence industry.

Fog clears over industrial licensing for defence industry but questions remain

There seems to be no clear advantage of giving an overarching role to the Ministry of Home Affairs as regards formulation of policy or grant of industrial licence for manufacture or export of defence items.

Amit Cowshish
May 29, 2017
Comment

Strategic Partnership Model – formulation of the scheme a big challenge

The objective of promoting Indian industry can be achieved in a simpler manner if after selecting the platform to be inducted MoD leaves it to the foreign OEM to tie up with the Indian company of its choice.

Amit Cowshish
May 22, 2017
Comment

Preference for Local Industry in Defence Contracts: What India Can Do

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.

Need for incorporating a limitation of liability clause in defence contracts

It would be both graceful and fair to pay a reasonable amount that is seen as equitable compensation for infringement of the fundamental right to life or damages arising from tortious liability of the government.

Amit Cowshish
May 17, 2017
Comment

Furthering India-Japan Defence Cooperation: Arun Jaitley indicates a new approach

While there is no doubt that India could do with help from Japanese defence firms, the modality of acquiring technologies from foreign companies in general requires to be clearly articulated.

Amit Cowshish
May 15, 2017
Comment

Raising Defence Budget to Three Per Cent of GDP

Speaking at the United Service Institution on May 4, 2017, the Chief of the Army Staff said that India needs to spend much more on military modernisation to ensure that economic growth continues unhindered.

Amit Cowshish
May 08, 2017
Comment

FDI in Defence: Need for Liberalisation and Simplification

The government should set up a task force to engage with potential investors and investees and evolve a simplified FDI policy, which has different slabs for different kinds of activities and is free from terms and conditions that are difficult to understand and implement.

Amit Cowshish
May 04, 2017
Comment

Examining the Case for Complete Transfer of Technology

The relationship between the cost versus coverage of technology transferred, which likely follows the law of diminishing returns, would make technology acquisition beyond, say 80 per cent, increasingly cost prohibitive, with no matching and assured gains

Kevin A. Desouza
March 21, 2017
Comment

Dual Charge – An Opportunity to Fix Financial Management in Defence

It is important to restore the functional self-sufficiency of the finance division of a ministry which handles 17-18 per cent of the total central government expenditure so that it could discharge its responsibilities without real or perceived pressures.