Defence Economics & Industry

imgimgimgimg

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

No posts of Books and Monograph.

No posts of Jounral.

India’s Revised Defence FDI Policy

Under the earlier policy, the foreign portfolio investment in Indian defence industry was either banned, or capped at an arbitrary level for certain companies, causing a lot of dissatisfaction among several listed Indian companies which had pleaded their genuine helplessness in controlling such investments given their nature of flow.

Takeaways for Defence in the Union Budget 2014-15

There are speculations whether the present budget is sufficient to meet expenditure on big ticket items but one has to bear in mind that it is only the advance payment – generally 15% of the contract value – that becomes payable on signing of a new contract. Even if new contracts are signed for say INR 50,000 crore, MoD will require just about INR 7,500 crore for those schemes.