Our vision for India in the next two decades would be flawed if it did not envisage a sizeable, vibrant and sophisticated defence industry for us that is globally competitive and has the capacity to research and develop new state of the art cutting edge technologies.
Before concluding, some of the suggestions made are listed below:
- Protection to the PSUs and the OFB from domestic players must be progressively withdrawn.
- A major overhaul of the functioning control, organisation and functioning of the OFB and the defence PSUs has been long overdue. Can we not figure out a way to move forward on this issue?
- Pressures to dilute the ‘offset clause’ of the DPP must be resisted. What we should be focussing on is the mechanisms for monitoring post contract implementation.
- Encourage the absorption of service officers in the defence industry. The rules of interaction with industry representatives must change. The MOD and the services headquarters should be more accessible to domestic industry. Currently doors for foreigners open up much more easily.
- Put in special efforts to promote and assist the growth of the private sector in the areas of aviation, communications, electronics and sensors (optics). There should be a comprehensive action plan for the acquisition of key technologies. The Government and the industry should work in concert on this issue.
- Re-examine our procurement policies and strategies for major purchases. Given the nature of the global market we can perhaps extract much more from our big deals.
- The growth of our defence industry can only be sustained if its business model takes into account the imperative of exports for sustenance.
- The laudable role played by the CII merits recognition. Both the Government and the industry should continue to encourage the CII to step up its activities to accelerate reforms and change.
Our vision for India in the next two decades would be flawed if it did not envisage a sizeable, vibrant and sophisticated defence industry for us that is globally competitive and has the capacity to research and develop new state of the art cutting edge technologies. Our industry has acquired a new found confidence. All it needs is direction and support form the Government. The launch of the Nano within four years of it being conceived has been inspiring. We hope the global awe it has attracted is repeated time and again. We want Nano clones now coming out of India’s defence industry stable
With increasing outsourcing opportunities, the Indian aerospace and defence industry is emerging as a key participant in the Asia Pacific aerospace and defence market. Apart from India’s perceived viability as an outsourcing hub for aerospace and defence products, the overwhelming involvement of the Government in areas of supply and demand cements its advantage in the industry. The Government’s pro-active soliciting of international co-operation has seen production moving to India, generating more opportunities for the country. Export competitiveness has been given priority, hence, there has been an increased thrust towards reduced import dependency.
Also read: India-US Relations: Future Trajectory
The Indian economy is one the fastest growing in the world, reflecting the successful reform process initiated in 1991. The Indian Government has gradually opened its key sectors to foreign participation and foreign investment in the Indian aerospace and defence industry which currently has a 26 percent cap. Meanwhile, since two-thirds of the Indian population depends on agricultural income, reforms in this area are widely considered necessary to aid economic growth. Development of the agriculture sector, trade, as well as capital liberalisation, and improvement in investments, are some vital areas being focused upon by the current Government.
The Frost & Sullivan Country Industry Forecast service for the Indian aerospace and defence industry uses a macroeconomic perspective to provide a focused analysis of the industry. This service covers an array of issues pertaining to the industry including political stances, trade policies, industry regulations, as well as their overall impact. Besides enabling decision makers to assess the impact of non-market forces, this analysis also helps in identifying new opportunities in the industry. In addition, it provides a strong base for preparing business contingency plans.
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