Issues plaguing defence sector

The study also noted that despite large quantum of opportunities, fast growing economy and availability of skilled talent pool, India has achieved very limited success in terms of aerospace and defence self-reliance.

It further said that highly protracted procurement timelines and cancellation of tenders together with tenders awarded based on lowest cost and non-existence of a level playing field are certain key issues in the defence procurement process.

Besides, issues like awarding tenders to defence public sector undertakings (DPSUs) on nomination, higher multiplier for offset discharge through Defence Research and Development Organization (DRDO), difference in cost of capital resulting in undue advantage for foreign players/DPSUs.

The study suggested that government should treat private players in defence industry as partners rather than mere equipment/service providers as similar approach had been highly successful in space and atomic energy programs.

END