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Some of the provisions in the DOG do not seem to be well thought out, provide greater leeway to the foreign companies, and have a potentially negative potential on eligible manufacturing sector, particularly defence manufacturing.
FMECA of equipment is an effective scientific tool to identify the assemblies, sub-assemblies and components that are critical for the satisfactory performance of equipment.
With economic growth and the political centre of gravity continuing to shift, BRICS already have a major role in dealing with transnational challenges, with power sharing institutionalised in the international architecture through the G20.
Entrusting the final appraisal of financial attributes to the Ministry of Finance may bring about a more open, dispassionate, integrative, and authoritative decision-making system.
The intention of the JV guidelines notwithstanding, the policy document suffers from certain weaknesses which may impact its objective of enhancing national defence industrial capability.
In the wake of the selection of the Rafale the offset clause currently in force must be used to revamp India’s domestic aerospace industry, making it more technologically current and capable of taking on advanced design and development tasks in future.
The range, speed, armament carrying capacity and the ability to accurately deliver a variety of weapons against different targets make the current IAF fleet of just over 32 squadrons far more formidable than when the IAF had almost 39.5 squadrons.
The Rafale’s upkeep and maintenance would demand a very high level of training and skills both by the pilots and technical personnel. Above all, stupid mistakes must be avoided by bringing about a fundamental change in our outlook to peacetime operations.
Notwithstanding positive developments over the last decade, certain grey areas in industrial licensing and FDI policy need further improvement to facilitate the private sector’s more meaningful participation in the Indian defence industry.
International economic circumstances are propitious for India and Indian defence companies to strike deals that would help reduce dependence on foreign sources for defence needs.
F-35 is not an ideal choice because of the delay in its developmental schedule, a tight production line, prohibitive cost, India’s own efforts to jointly develop and produce a fifth generation fighter with Russia, and little technological or industrial benefits that would accrue.
The Dialogue was featured in prime time on the Chinese State-run TV channel, with the comment of the Chinese Premier Wen Jiabao that it had achieved “positive results”.
An efficient, transparent PPP policy dovetailed with an effective FDI framework will not only ensure that state-of-the-art defence equipment is procured but will also be instrumental in enabling transfer of technology.
Given the sensitivity attached to defence-related FDI, each investment should be subject to wider review and impact analysis following which the FDI percentage could be determined varying between zero and 100 per cent.
The defence budget for 2011-12 has not been unduly impacted by the fiscal consolidation process, and reflects the MoD’s ability to spend resources within the stipulated time.
Ground reality rather than fiscal prudence should guide the Finance Minister while finalising the defence budget for 2011-12.
In the absence of reforms in several areas, DPP-2011 may not be able to achieve its stated objectives of expeditious procurement and greater involvement of domestic industry in defence production.
India’s increasing reliance on FMS route is indicative of its desperation to bridge the gaps in its defence preparedness and shows the weakness of the Defence Procurement Procedure.
If basic equipment shortfalls that the defence sectors face are to be addressed, then Indian defence planners need to use the DEI framework to create solution models.
During application of prescribed procedures, many contradictions and ambiguities crop up, resulting in delays in decision making and, in some cases, to even faulty decisions.
