Indian defense chief urges public-private industry cooperation
IN his inaugural address at Defexpo 2010, Indian Defence Minister A. K. Antony called for better cooperation between private and state-owned defense companies.
"We want the public sector and the private sector to work in close cooperation, as friendly partners," Antony said Feb. 15. "Our defense industry is open up to 100 percent for the private sector, while foreign direct investment is allowed up to 26 percent."
India's annual defense expenditure of about $30 billion will increase in proportion relative to the overall economy, which is expected to grow 8 percent to 10 percent annually for the next two decades, he added.
The biannual exhibition of land and naval systems is being held in New Delhi from Feb. 15-18. Thirty-five countries are showcasing their weaponry and equipment.
"Expenditure on defense in absolute terms is bound to increase in equal proportion. I am sure this will present the defense industry new and challenging opportunities to make a more meaningful contribution to the defense sector," Antony said.
The Indian Defence Ministry is drawing a long-term road map for defense requirements and capabilities.
"We will soon publish the 'Technology Perspective and Capability Roadmap,' covering a period of 15 years, to share the future needs of our armed forces," Antony said.
It is estimated that India will need to spend about $100 billion in the next 15 years to bolster its armed forces. About 50 percent of India's weapons and equipment, bought mostly from the former Soviet Union, is obsolete, an Indian Defence Ministry official said.
Defense planners would like to increase participation by the domestic sector as India currently imports up to 70 percent of its weapons and equipment. The Defence Ministry periodically reviews its procurement policy through a process called Defence Procurement Procedures.
"We have made our Defence Procurement Procedures transparent and [worked] to speed up the defense acquisition process. The recent introduction of the 'Buy & Make [Indian]' category in the Defence Procurement Procedures aims at encouraging the Indian private industry to form joint ventures with any foreign manufacturer," Antony said.
India's procurement process often is marked by delays because of the Defense Ministry bureaucracy, viewed as the biggest stumbling block in procuring essential weapons, a senior Indian Air Force official said.
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