The Reality of Defence Procurement
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.
- Gautam Sen
- April 16, 2012
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.
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 Indian Army is undergoing the process of transformation. This, if realised, would become one among the critical factors that will assist India achieve the ability to secure its national interests. A few issues are worth flagging, even as the process is underway.
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.
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.
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.
With the growth of the public sector in Defence Production a large number of industrial units in the Private Sector has also grown with varied scales of operation in areas like outsourcing of raw materials, components, sub-systems, assemblies and sub-assemblies.
If India does not modernize in an evenly spread out manner, it will be faced either with the prospect of its armed forces not being prepared, or rushing to make purchases amidst crises, or creating needless hysteria when frenzied modernization occurs.