India clears Pilatus trainer deal | India clears $660 mn deal for artillery guns | François Hollande defeats President Nicolas Sarkozy in French Election | Sarkozy tells people gracefully: I become a citizen among you | Drone attacks to continue after US withdrawl from Afghanistan 2014 | India's security entwined with Afghanistan's stability, says India | India test flies naval variant of LCA | INS Teg warship inducted into Indian Navy | UN chief lauds India's role in Security Council | UN Chief says he trusts India to strengthen ties with neighbours | India launches advanced 24 x 7 RISAT-1 satellite | No silver bullet to destroy Al Qaeda, says Panetta | Supreme Court dismisses plea against Indian Army Chief designate | Lt Gen Bikram Singh to take over May 31 from retiring Gen V K Singh | India successfully tests 5,500km ICBM Apr 19 | India seeks Full membership of international Strategic Export Control Regimes | India says it has enforced appropriate controls to check nuclear and missile proliferation | Boeing to source aerospace composites from Abu Dhabi's Mubadala | UAE protests Iranian President's visit to disputed islands in the Gulf | Air India's turnaround plan approved | Indian Navy inducts n-powered Russian Nerpa attack submarine April 4 | Renamed INS Chakra, the boat will be with India for 10 years | INS Chakra arrived in Vishakhapatnam on India's eastern seaboard April 1 | Navy to induct 5 ships every year for 5 years, says Antony | Also that similar modernisation of armed forces is high priority for the Government |
 

India spends $35 b/year on Defence N S Sisodia, DG, IDSA

 

 
 
  Published: July 2011
 
 
 
 
 
 

Together, countries of the world now spend nearly $1600 bn per year on defence, constituting about 2.5 per cent of global GDP. India’s own defence expenditure exceeds $35 bn per annum. These are large sums of money allocated to the critical task of national security. It is essential therefore that scarce resources are utilized efficiently to obtain the best value for money; and defence forces are given the capabilities they need, with speed. The entire process of acquisition must further ensure the highest standards of probity and transparency. These are the common goals of defence acquisition in most countries.

 

And yet, defence acquisition has been notorious the world over for delays and cost escalation. According to Transparency International, defence sector is also highly prone to corrupt practices on account of the nature of the market and the secrecy which cloaks defence acquisitions. Several countries, particularly the United Kingdom, France and US have undertaken reforms in their defence acquisition policies and systems. Major reforms have been brought about in India too and the Ministry of Defence has set up a Defence Acquisition Organisation in 2001.

The Defence Procurement Procedures have laid down guidelines and rules for capital acquisition. These have been revised from time to time in the light of practical experience and the latest version of India’s defence procurement procedure has been put in place since January 2011. Yet, we believe that reform should be a continuing process and there is need to address the problems that continue to persist.

The conference has been organized in this background, with the objective of sharing experiences and learning from the best practices of different countries.

In IDSA, we have been regularly undertaking studies on defence acquisition and procedures. We believe that considerable improvement can be brought about in formulation of qualitative requirements QR to make them broad based, so as to promote competition. For this purpose, greater expertise is needed. It has been reported in one of the papers being presented in this conference that in 50 per cent cases, qualitative requirements had to be either waived or amended, which led to delays upto six months. A case of Air Defence Gun, has been cited the QRs of which had to be revised 7 times and it took 17 years to do so. There is also a need to avoid long delays and subjectivity in field trials. Another problem reported in these papers is the multiple stages of processing, defusing accountability.

According to C&AG, each case has to go through 50 to 60 submission points and 25 per cent workflow is redundant.

Defence plans need to focus much more on capabilities required rather than accretion of equipment and weapons. There is also considerable scope for greater jointness among the Services in developing capabilities. Detailed feasibility studies for larger projects undertaken in time can reduce risks and ensure greater adherence to costs and timeframes. One of our recommendations has been to focus on capacity building of the personnel engaged in acquisition so that they are better able to manage the acquisition processes.

These and other critical issues will be discussed in detail during 9 sessions, over three days, with the final session devoted to international best practices in acquisition.

We are indeed greatly encouraged by the enthusiastic response to this conference. The total number of policy makers, practitioners, defence officials and industry representatives’ participating in the conference is 36. Of these, 21 are representing foreign countries. It is heartening that experts from Malaysia, Brazil, South Korea, Russia, Germany, France, U.S. and the U.K. are participating in this seminar.

Before I conclude, on behalf of IDSA, I would like to express my deep gratitude to Hon’ble Raksha Mantri for lending his support to this conference. I also wish to thank all the distinguished participants who have taken the trouble of travelling to Delhi to share their views in this seminar.

We do hope that the deliberations of this conference will benefit both policy makers and practitioners and contribute towards making defence acquisitions speedier, cost effective and transparent.

 
  © India Strategic  
     
   
 
Top Stories
Boeing Designs Advanced Technology Winglet for 737 MAX
India tests 5,500km ICBM
SC dismisses plea against Lt Gen Bikram Singh
Lt Gen Bikram Singh designated next Indian Army Chief
India clears $660 mn deal for artillery guns
India launches advanced 24 x 7 RISAT-1 satellite
INS Vikramaditya set for Sea Trials May 25
INS Teg warship inducted into Indian Navy
Russia tests Italian tank
India test flies naval variant of LCA
Centre's nod must for trial of errant armymen: SC
India seeks Full membership of Nuclear Export Control Regimes
HAL disinvestment under consideration: Government
Indian Navy inducts n-powered attack submarine INS Chakra
US offers Stinger missiles for India’s LCH
Boeing Celebrates 4,000th Next-Generation 737
Boeing to source Composite Aerostructures from UAE’s Mubadala
 
     
   
     
 Home | Contact Us| In the Press| Links| Downloads
© 2008-12, India Strategic. All rights reserved.