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

Members:

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Rajneesh Singh Research Fellow (SS)
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S. Samuel C. Rajiv Research Fellow
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Shayesta Nishat Ahmed Research Analyst

No posts of Books and Monograph.

No posts of Jounral.

Takeaways for Defence in the Union Budget 2014-15

There are speculations whether the present budget is sufficient to meet expenditure on big ticket items but one has to bear in mind that it is only the advance payment – generally 15% of the contract value – that becomes payable on signing of a new contract. Even if new contracts are signed for say INR 50,000 crore, MoD will require just about INR 7,500 crore for those schemes.

Comments

FDI in Defence – Revisiting the Conundrum

The proposal to relax the present cap on FDI in defence has expectedly drawn sharp reactions. Those who oppose argue that higher FDI is not required and, more importantly, it will not be in national interest, not the least because it will stymie the process of indigenization. This calls for a dispassionate analysis.

Reforming Defence Contracting Procedures

It may perhaps be useful to examine some features of India’s Defence Procurement Procedure (DPP) for streamlining of the capital acquisition process for defence procurement. After all, the DPP may well be the only procurement regulation in the world that discriminates against its own domestic bidders

Moving on with the Defence & Security of India

Ministry of Defence which accounts for 13-14 per cent of the central government expenditure, if one also takes into account the expenditure on defence pensions, could come under some pressure to prepare an action plan as the outcome of what it does is often intangible, undisclosable, or simply unmeasurable. The author puts forward some suggestions.