No country has become powerful by being dependent on foreign defence supplies. It is now increasingly imperative for India to indigenise production through private sector involvement with the aim of eventually developing the ecosystem of a defence industry.
By Aakash Brahmachari
Feb. 18 – The unfolding scandal in the Indian Air Force’s acquisition of 12 helicopters from AgustaWestland has exposed yet again, the need for India to reduce the import quotient of its defence equipment purchases. It’s time to accelerate indigenisation through the participation of India’s private sector, simplify rules and specifications, and streamline the acquisition process.
As India seeks to replace its aging defence system, it has become the world’s largest armaments customer – and is expected to spend more than $80 billion between 2011 and 2015. India’s own public sector, which has so far been entrusted with localizing development, is notorious for cost overruns and long delays. For instance, the Light Combat Aircraft (LCA), India’s indigenous attempt to replace its dated MiG-21 fighters, was an early ambitious attempt. However, it first flew in 2001 and was scheduled to be inducted into the Indian Air Force in 2012 – four decades after the program was started. The ‘Arjun,’ India’s Main Battle Tank, was judged to be too expensive and inadequate for the Army’s requirements – hundreds of T-90S tanks were purchased from Russia instead. Now we are dependent on the French for fighters and missiles; the Russians for naval ships and aircraft; the Italians for helicopters; the Israelis for drones and missiles; the Americans for transport aircraft. Continue reading











New Delhi has actively worked with Beijing to address its massive bilateral trade deficit. However, it has another option. India can seek greater economic integration with ASEAN and substitute its imports from China with that of ASEAN. The India-ASEAN Summit on December 20 would be a good place to start.
Dec. 6 – In a worrying development this week, China and India have become embroiled in a dispute regarding energy exploration in the South China Sea (SCS).
The Chinese have learned from Russia’s past mistakes at reforming state-owned enterprises (SOE), and some well-connected politicians have reaped the economic benefits that followed. Will the new administration in Beijing reform China’s SOEs or maintain the large role of government in industry?
Nov. 30 – India and China are looking to take their thriving economic relationship to a new high. This week, delegates from East Asia’s two fastest-growing economies met in Delhi for the second official India-China Strategic Economic Dialogue. Initiated in 2010 during a visit to India by Chinese Premier Wen Jiabao, the India-China Strategic Economic Dialogue is a forum at which the two countries share thoughts on mutual economic issues, promote macroeconomic coordination, and enhance political and economic cooperation. This week’s conference also featured discussions on expansion of bilateral trade and partnerships in key economic sectors. By the meeting’s end, the two economic giants signed 11 agreements enumerating over US$5 billion in direct investment.