PET PROJECTS
SECTOR DEVELOPMENT
Defence
3 Good Things
  • Befitting response to China and Pakistan
  • Speeding up process to get new equipments
  • Policy changes in Defence Procurement Procedure
3 Bad Things
  • No decision on One Rank One Pension
  • Delay in decision on key appointments

Future Planning
-Early promulgation of road map for 'Make in India'
-Need to establish Aerospace and Maritime Commissions
-Re-employment of defence personnel post retirement.
-Improve our intelligence gathering
PERFORMANCE METER
 
Ratings
 Poor
 Average
 Good
 Best
10%
 Poor
10%
 Average
50%
 Good
30%
 Best
Expert Comment
Bhushan Gokhale
Air Marshal (Retd)
While one can not expect magic in just one year especially in the Defence sector, a road map seems to be emerging for ensuring greater self-reliance and indigenisation of Defence equipment. A collaborative approach will need to be evolved with all the stake holders including Private and Public enterprises to infuse capital, increase manufacturing infrastructure as well as skill enhancement leading to job opportunities. Partnership with foreign companies must include clauses such as re-export. It is desirous that over the next few years imports are reduced substantially targeting reversal of present ratio from 70:30 (imported vis-a-vis Indigenous) to at least 40:60.
Although attempts were made to manufacture integrated weapon systems like HF-24 aircraft or Vijayanta tanks, the policies have not been consistent or sustained. Private players have not been able to participate in Defence production because of very restrictive approach of allowing only Defence PSUs to manufacture or market such systems.
However, some of the actions and pronouncements in the First year indicate that the government has the resolve to move ahead in a positive manner.
In terms of the budget, there is a need to find a balance between revenue and capital expenditure especially since presently it is skewed towards large revenue requirements resulting in less money for inducting newer contemporary weapon systems. With more thrust on Indigenisation and use of offsets there can be substantial savings in revenue expenditure.