Defence Industry

Outsourcing of Defence Production
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Issue Book Excerpt: From the Crow\\\'s Nest | Date : 20 Jun , 2012

Not only will this private-public teaming up create a most powerful synergy in warship building, but the resultant diversification will also be a force-multiplier for national security by creating centres of excellence.

Ever since we launched the first Indian-built warship, INS Nilgiri, in the late 1960s, the shipbuilding industry has been the flag bearer of our drive for indigenisation. Today the Navy’s force planning process is heavily dependant on the capacity and productivity of our public sector shipyards, and unless they can deliver a certain number of ships/submarines a year, our force levels are going to slip. The good news is that the order books of the shipyards are now filling up rapidly, but the bad news is that with their best efforts, they lack the infrastructure, the capacity and the productivity to deliver ships at the rate that the Navy needs.

So it is clear that the time has come to invite the private sector to contribute to warship building in whatever manner possible: public-private partnerships, joint ventures, outsourcing or subcontracting. Not only will this private-public teaming up create a most powerful synergy in warship building, but the resultant diversification will also be a force-multiplier for national security by creating centres of excellence.

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The views expressed are of the author and do not necessarily represent the opinions or policies of the Indian Defence Review.

About the Author

Admiral Arun Prakash (Retd.)

Former Chief of the Naval Staff of the Indian Navy, Chairman Chiefs of Staff Committee and author of From the Crow’s Nest.

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