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.

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.

Running Low on Ammunition

If we have no qualms about importing from other countries why cannot we buy ammunition from our own private sector companies? While restrictions could apply to production of small arms and ammunition, for large calibre arms and ammunition there is a case for permitting the private sector companies to chip in.

Unshackling the Armed Forces: Need for Greater Delegation of Financial Powers

The recommendations of a committee set up in 2009 to review the delegated powers were accepted by the Defence Minister in December 2010 but soon thereafter these were held in abeyance because of the perceived fear that there was a large scale misuse of the delegated powers and that implementation of committee’s recommendations would result in excessive delegation of powers.

RFI for the Basic Trainer Aircraft: New Ray of Hope for the Indian industry

It is difficult to understand why the MoD should bind itself by asking for request for information (RFI) that cannot be compared across all the proposals. What would constitute ‘capability’ and ‘requisite infrastructure’ to license produce the aircraft is a matter of subjective interpretation and therefore, it would become difficult for MoD to assess whether the information provided by a bidder establishes that he/she has the requisite capability/infrastructure.

Offsets Facilitation Cell: Optimizing its Potential

On Feb 14, 2014, MoD issued an office memorandum about operationalization of a Offsets Facilitation Cell. This is the perhaps the first positive step in a long time and the MoD needs to be complimented for it. However, absence of an operating procedure, clarity about the exact nature of mandate and guidelines for those who will man the cell could turn out to be a bane for this wonderful initiative.