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:

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

No posts of Books and Monograph.

No posts of Jounral.

Economic Downturn: Options for MoD

The present global economic crisis has slowed down the growth of the Indian economy, affecting among others, the fiscal situation and the revenue mobilisation potential of the central government. Defence being one of the largest recipients of central government expenditure, the present crisis casts a doubt on the adequacy of future resources. This commentary discusses some major options that India’s Ministry of Defence needs to consider in order to withstand the likely resource constraints in the coming years.

India’s Defence Budget 2009-10: An Assessment

In its interim budget for 2009-10 the Union Government has allocated Rs. 1,41,703 crores for the country’ Defence Services that include three Armed Forces (i.e., the Army, the Navy and the Air Force), and other Departments, primarily Defence Research and Development Organisation (DRDO) and Defence Ordnance Factories. This is apart from Rs. 24,960 crores which have been earmarked to defray civil expenditures of Ministry of Defence (MoD) and its affiliated organisations, including, the Coast Guard, and for defence pension (Rs. 21,790 crores).

Budget Utilisation and Accountability

Every year as India approaches the Budget session of Parliament, there are debates in various forums about the adequacy of Budget allocation to meet the modernization plan of the Services considering the threat perceptions/scenario. Due to the economic slowdown world-wide which is likely to affect the revenue collection of the national exchequer this year, the Government may face difficulty in meeting the increased demand from the Defence Forces. Further, we should not forget that electoral compulsions are also likely to play an important role in the coming budget.

The Gorshkov Deal: Beyond Economic Considerations

It has been reported that Russia has demanded US $3.5 billion from India for the aircraft carrier, Gorshkov, which is currently undergoing repairs. This is the second time that Russia has sought a price increase from the original contracted amount of $1.5 billion. Given the hike in its price and the further delay in the date of delivery, the deal has naturally attracted comment, with some people even questioning the very wisdom of having gone for the ship.