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Gearing up for the Defence Exports: Challenges, Opportunities and Pitfalls

India has made rapid strides in defence technology in recent past and reached a stage of self-reliance. The objective was to have thrust in indigenous production and exploring possibilities of exports to other developing nations that may look forward to supplies from India.

In spite of the potential the country had in defence production, in the form of resource capability, know-how and technical expertise, but due to lack of clear policy had prevented its full exploitation. One can assume that our defence industrial policy broadly consists of the following-

Offset Absorption Roadmap for the Indian Air Force

Offsets in some form or the other have been practiced in many countries over a long period of time. Even in India, licensed production contracts and technology transfer contracts with the erstwhile USSR were a type of offsets. However, Defence Procurement Procedure-2006 (DPP-2006) had streamlined the process to a great extent. DPP-2008 has refined the policy further.

Offset Investment Inflow Priorities for Ordnance Factories

Offset agreements are formal arrangements of trade where some sort of leverage is exploited by a buyer to obtain compensatory benefits in the case of high value off-shore purchases by forcing the seller to undertake well-designated activities for enhancing competitiveness, up-gradation of technology for domestic industries, additions to exports, up-gradation in the infrastructure in appropriate domestic sectors, etc. Though these are business deals with built-in reciprocity clauses, it is not a matter of establishing desired equivalence of inflow and outflow resources.

Technology Inflows: Issues, Challenges and Methodology

The defence offset policy mandates the foreign suppliers to plough back a minimum of 30 per cent of the contractual value of projects worth Rs. 300 crores or above to the domestic defence industry. The offset route is intended to strengthen the domestic defence industrial base through a combination of technology transfer, investment in R&D and in production facilities, besides export business generation. From the national view point, the offset aims self-reliance and indigenous capability enhancement in the vital defence sector involving advanced technology.

National Investigation Agency: A Good Start but not a Panacea

On January 1, 2009 the National Investigative Agency Bill became a law. It provides for setting up a special agency at the national level “to investigate and prosecute offences affecting the sovereignty, security and integrity of India, security of State, friendly relations with foreign States and offences under Acts enacted to implement international treaties, agreements, conventions and resolutions of the United Nations, its agencies and other international organisations and for matters connected therewith or incidental thereto”.

Changing Face of Bodo Insurgency

Intense internal rivalry among Bodo insurgents has proved to be the biggest hurdle to peace in Bodo-dominated areas of Assam. Internal differences within the National Democratic Front of Boroland (NDFB), the only surviving Bodo insurgent group, have further widened, following the expulsion of its founder-president, Ranjan Daimary, alias D.R. Nabla. Prospects for yet another round of fratricidal clashes are imminent, thus posing a significant threat to the peace process.

Will The Fall Of Killinochchi End Ethnic Crisis In Sri Lanka?

After nearly four months of intense conflict, the Sri Lankan military has finally taken control of Killinochchi, a key northern Sri Lankan town and the de facto capital of the Liberation Tigers of Tamil Eelam (LTTE). In fact, in the ongoing fourth Eelam War, Killinochchi is an important milepost, and thus constitutes an outstanding victory for the advancing troops and a big blow to the Tigers. In particular, the capture of the administrative capital of the rebels represents a symbolic victory for the Sri Lankan government, which has been fighting the rebels for over two decades.

Offset Policy framework

I shall basically discuss the road map which we have offsets in the country. We in fact have a very good phrase called quasi direct offsets for our system. It is not as direct as is understood internationally and a foreign OEM can in fact buy ships from India if they were to supply multi-role combat aircrafts. While this is true of all the offset proposals in the Ministry of Defence, I would like to mention that barring two or three cases, all cases are in fact ‘direct’ as is internationally known.