From Consumer goods to Defence, the presence of successful Indian products and innovation is minimal. To fill this gap, India needs a complete 360 degree development focusing Make in India View more at #Hindustan360.
Recent success & record launch by Indian Space Research Organisation (ISRO) was a history. ISRO successfully launched a record 104 satellites into orbit at one go, shattering the previous Russian record of 37. The total payload included India’s 714kg Cartosat-2 and 103 nano-satellites – 2 Indian, 96 American and 1 each from Israel, Kazakhstan, the Netherlands, Switzerland and UAE. The significant foreign cargo exemplifies ISRO’s excellent stock in the satellite launch market.
ISRO’s cost-effective and reliable satellite launch model, among its other achievements, is certainly reason to conclude that the space agency represents the best of India’s scientific prowess. The problem, though, is that such technological excellence is rarely visible in other sectors. From consumer goods to defence, the presence of successful Indian products and innovation is minimal. Even in the premier IT sector, Indian companies mostly excel at providing services to foreign clients rather than creating cutting-edge IT products. This lack of inventive spirit bodes ill for a country that wants to emerge as a global knowledge and technology hub.
Defence industry of India
Defence industry of India is a strategically important sector in India. With strength of over 1.3 million active personnel, it is world’s 3rd largest military force and has the world’s largest volunteer army. The total budget sanctioned for the Indian military for the financial year 2015 is 2.47 trillion Indian rupees ($40.07 billion).
The military budget of India is about 2.4% for year 2015 of the total GDP as per World Bank statistics. The defence expenditure for Fisical year 2017-18 allotted by Ministry of Finance is, excluding pensions a sum of 2,74,114 crores but including 86,488 crores for Defence capital.
India has been spending worth nearly $3.5 billion to boost its ageing Soviet-era military equipment. It has been pushing for greater indigenisation of the military industry as India imports around 70 per cent of its defence hardware mainly from Russia, Japan Israel and United States.
The production of Indian defence equipment prior to 2011 was completely in the hands of the Government of India. The Government of India also opened up the Foreign direct investment to 49% from the existing 26% and thereby increasing flow of funds from foreign countries. With the increase in FDI cap, private players such as companies from many developed countries will also be attracted to the Indian defence economy as they can have share in the Indian defence Companies.
Make in India
The Modi government in its first year cleared 39 capital procurement proposals, of which 32 proposals worth ?889 billion (US$13 billion) (or 96% of value of total proposals) were categorized as Buy (Indian) and Buy and Make (Indian)—the top two prioritized domestic industry-centric procurement categories as per the defence procurement procedure (DPP).
In July 2015, the defence ministry eased export regulations and stopped demanding multiple assurances on end-use from foreign governments even for sale of components by Indian entities.
Merit or Innovation
It may be true, but has now become passe, to state that China is the factory floor of the world while Indian manufacturing is limping along. The point is that even in areas such as Design, Technology, Innovation and Scientific patents China has powered far ahead of India. This is the result of an Indian system that prefers bureaucratic red tape to Merit or Innovation. While private sector companies may have a better work culture than public sector organisations in India, they invest very little in R&D. Our premier technical institutes such as the IITs are best known for their undergraduate students rather than cutting edge research.
It also asked the vendor to specify critical technologies required and comment on its ability to absorb the aircraft manufacturing technology at the levels of sub vendor/supply chain elements in India through ToT from OEM and its partners. As regards the delivery schedule, the first lot of jets have to be delivered in three years after inking of the contract and all the 57 have to be delivered in the next three years.
Indian defence Companies
|Name||Specialization||Revenue (As of 2015)|
|Bharat Dynamics||Ammunition and Missile systems||32.81 billion (US$490 million)|
|Bharat Electronics||Avionics||70.93 billion (US$1.1 billion)|
|Bharat Earth Movers||Transport||28.02 billion (US$420 million)|
|Defence Research and Development Organisation||Research and Development||103 billion (US$1.5 billion)|
|Garden Reach Shipbuilders & Engineers||Naval ships||16.94 billion (US$250 million)|
|Goa Shipyard||Shipbuilding||6.81 billion (US$100 million)|
|Hindustan Aeronautics Limited||Aerospace manufacturer||177.53 billion (US$2.6 billion)|
|Mazagon Dock Limited||Shipbuilding|
|Mishra Dhatu Nigam||Metallurgy|
|Ordnance Factories Board||Defence Equipment and Support||162.46 billion (US$2.4 billion)|
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