Recent announcements of major arms acquisition programmes by the Indian government must have given a sense of elation to the armed forces, which have been waiting for long for some of this equipment. These announcements also give greater confidence to the nation about the military’s capability to tackle national security challenges. But there are other long term implications of arms procurement largely through import.

• N. Neihsial
• June 03, 2008
• Comment

The practice of converting defence plans into publicly known defence budget is essentially a practice of democratic governments. One reason for public disclosure of defence spending could be that tax payers expect to know directly or through their representative how much is being spent on national defence and on other sectors of economy which affects their security and welfare. Disclosing the defence budget even to the domestic audience was rarely done in the past. In fact, even today, some major powers do not disclose their defence spending to the world.

• N. Neihsial
• May 30, 2008
• Comment

Union Budget 2008-09 has allocated Rs. 105,600 crores for India’s Defence. Crossing the one lakh barrier for the first time, and accounting for nearly 14.1 per cent of total central government expenditure, the Defence Budget looks quite impressive (see Box). But when seen in the context of India’s expanding interests, this allocation remains as moderate as ever. Moreover, an in-depth analysis reveals problems in defence and budgetary management, none of which show signs of abating.

• Laxman Kumar Behera
• March 19, 2008
• Comment

“It’s about time that the bureaucrats in the MOD and the military leadership in the Service Headquarters opted not only to do ‘the right things’ but also to do ‘the things right’ in as far as the procurement process is concerned.”
- Defence & Technology, July/August 2007, p. 13.

• N. Neihsial
• January 25, 2008
• Comment

India opened up its defence industry to the private sector in May 2001, in a move to enhance the country’s ‘defence preparedness’. To give further impetus to this policy, the Ministry of Defence (MoD) came out with new policy measure related to the concepts of private Industry Leaders [or Raksha Udyog Ratnas (RURs)] “Make” procedure, and defence offsets, in its 2006 Defence Procurement Procedure (DPP). With these policy initiatives, the government’s focus seems to have shifted towards the private sector as far as achieving its long-cherished goal of ‘self-reliance’ is concerned.

• Laxman Kumar Behera
• January 08, 2008
• Comment

The Global War on Terror (GWOT), now into its sixth year, has become one of the most expensive wars in American history. GWOT covers three military operations: Operation Enduring Freedom (OEF), which broadly covers Afghanistan but ranges from the Philippines to Djibouti; Operation Noble Eagle (ONE), which is meant to provide better security for US military bases and enhanced homeland security; and Operation Iraqi Freedom (OIF) which began with the build-up of troops for the 2003 invasion of Iraq. The cost of these operations has phenomenally increased over the years.

• Laxman Kumar Behera
• January 01, 2008
• Comment

The latest Comptroller and Auditor General (C&AG) Performance Report on Defence Services (No. 4 of 2007) has once again exposed the problems involved in Indian defence acquisition. The report has been critical virtually of all the processes of the acquisition cycle, from planning to the formulation of Qualitative Requirements (QRs), vendor selection, conduct of trial and evaluations and processes of induction.

• Laxman Kumar Behera
• August 03, 2007
• Comment

The Ministry of Defence (Finance) organised a day-long seminar on March 24, 2007 on Outsourcing Possibilities in Defence. The seminar brought together a variety of perspectives – of the Services, the Ministry of Defence, industry, academia and think tanks. The March 24 event was a follow-up to the first-of-its-kind International Seminar on Defence Finance and Economics held in November 2006. Its importance lies in the fact that not long ago ‘defence’ was considered a ‘strategic’ affair and thereby excluded from public scrutiny and economic analysis.

• Laxman Kumar Behera
• April 11, 2007
• Comment

On February 28, 2007, Finance Minister P. Chidambaram presented the Union Budget for the fiscal Year 2007-08 (April 1, 2007 - March 31, 2008). Out of a total budgeted expenditure of Rs. 6,80,521 crore, Rs. 96,000 crore was earmarked for national Defence, which includes allocations to the three Services - Army, Navy and Air Force - Defence Ordnance Factories, and the Defence Research and Development Organisation. This is besides the allocation of Rs. 16, 695.83 crore for Defence Civil Estimates, including Rs. 14,649 crore for Defence Pensions.

• Laxman Kumar Behera
• March 09, 2007
• Comment

The Sixth Aero India Aerospace and Defence Exhibition held from February 07 to 11, 2007 was by all accounts a 'big' event. The biennial gathering was organized jointly by the Ministry of Defence's (MoD) Department of Defence Production and the Federation of Indian Chambers of Commerce and Industry (FICCI). For the first time, Farnborough International Ltd., the organization that holds the Farnborough International Air Show, was involved. 503 defence companies from 33 countries were represented at the Yelahanka Air Force station in Bangalore, the venue of the show.

• S. Samuel C. Rajiv
• February 22, 2007
• Comment