Title Impact of Defence Offsets on Military Industry Capability and Self-Reliance: The Road Ahead
Book Condition New
Jacket Condition New
Edition First Edition
Publisher New Delhi, India KW Publishers 2012
Seller ID 104344
India embarked upon the liberalisation path in1991 by dismantling the Licence, Quota, Permit Raj. A decade later, the defence sector allowed100 percent private sector participation with 26percent Foreign Direct Investment (FDI). The offset policy in 2005 and its subsequent refinements aimed at leveraging India’s big ticket acquisitions to bring in substantial FDI, Joint Ventures (JVs) and outsourcing arrangements, thereby improving the self-reliance quotient. Despite such policy initiatives, India’s military industry capability and self-reliance remain at a low ebb. There is considerable unease over the implementation of defence offsets, due to the meagre inflow of FDI into manufacturing and the R&D sector, lukewarm long term investment interest of foreign arms majors in Indian industry and outsourcing arrangements predominantly for low end products, services and Maintenance, Repair Overhaul (MRO) so far. To galvanise the process, the government needs to develop a comprehensive industrialization strategy for the manufacturing sector and dovetail defence industry capability as part of this larger policy mosaic. Use of offsets can be a critical facilitator of this strategy. Of the four BRIC (Brazil, Russia, India, and China) countries that are expected to be global leaders in 2020, Brazil, China and Russia are seen to have taken significant strides in aerospace, shipbuilding, manufacturing, exports and R&D, with offsets playing a significant role. Printed Pages: 218.
Impact of Defence Offsets on Military Industry Capability and Self-Reliance: The Road Ahead S.N. Misra