27 May 2014

News Story: New Indian Regime Expected To Rejuvenate Defense Sector


By VIVEK RAGHUVANSHI

NEW DELHI — Indian military officers and defense analysts are pinning their hopes on the newly elected National Democratic Alliance government to speed stalled weapons and equipment buys.

They also hope Narendra Modi’s administration will reform the defense production sector and reduce New Delhi’s reliance on imports, which constitute nearly 70 percent of military purchases.

A Defence Ministry official said the administration is expected to increase the nation’s caps on foreign direct investment (FDI) from 26 percent to 49 percent.

“They [the new government] are inheriting a dysfunctional MoD and a huge backlog of big ticket items,” said Anil Jai Singh, a retired Navy commodore and defense analyst. “The first thing the new defense minister should do is review the programs that are long overdue and which have a critical bearing on our defense preparedness and, in consultation with the services, prioritize the requirements and ensure that the MoD bureaucracy and the service headquarters work together in adhering to timelines. That in itself would be a positive start and send a strong message that accountability will be fixed in case of delay.”

Read the full story at Defensenews