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Analysts: New Modi Government Lacks Clear Defense Policy | Defense News | defensenews.com
Sep. 7, 2014 - 12:24PM | By VIVEK RAGHUVANSHI
NEW DELHI — The dual responsibilities of defense minister and finance minister handed to Arun Jaitley has given short shrift to India's Defence Ministry, and the quick decisions anticipated on weapons procurement have not been forthcoming, said defense analysts assessing the Narendra Modi government's first 100 days.
The new government so far has simply continued the defense policies of the previous regime, analysts and military officers said.
"The part-time defense minister is one of the most inexplicable oversights," analyst Nitin Mehta said. "It gives too little time to Jaitley to address the MoD, saddled as he is with the task of economic revival. Without a full-time defense minister, the Modi government will not be able to recover from the 'lost decade' of the previous defense ministry under A.K. Antony."
Analyst Venkataraman Mahalingam is even more direct. "How can anyone possibly handle both the defense and finance ministries? These ministries are too important and are heavily loaded to be handled by part-time incumbents. It is not serving any purpose."
While Jaitley is viewed as a capable minister, analysts agreed that giving him both jobs makes no sense.
"There is an urgent necessity for a stand-alone defense minister," analyst Rahul Bhonsle said.
However, analyst Amit Cowshish, a retired MoD bureaucrat, points out "it is obviously not a permanent arrangement. Therefore, I see no reason why the likely long-term impact of this arrangement should be the subject of speculation."
A senior Indian Navy official who requested not to be named said the defense forces had been waiting for the new government to reverse the overly cautious approach of the previous defense minister and speed weapon acquisition. However, no structural changes have been announced so far that would accelerate the process.
The Defense Acquisition Council (DAC) cleared the purchase of six conventional submarines in 2010 but the tender has yet to be floated, the official said.
India has been preparing for the possibility of fighting China and Pakistan simultaneously, but military officers here said more funds and weapon buys are needed to achieve that level of readiness. A single tender can take up to a decade due to bureaucratic delays, an Air Force official said.
For example, the purchase of 126 multirole fighter aircraft has been underway since 2007. The Air Force opted for this buy because the light combat aircraft that India is developing to replace Russian-made MiG fighters is 15 years behind schedule, the official said.
"The new government on Aug. 29 canceled the tender for purchase of the light utility helicopter on technical grounds, while the [Air Force] has been waiting to replace the aging Cheetah and Chetak helicopters it is currently flying for a decade," the service official added.
While some analysts said 100 days is too short a time to assess a government, others claimed the leadership has not yet seriously tackled national security issues.
"No change in course can ever be initiated without a clear national security and national defense strategy," Mahalingam said. "This is yet to be done. There is no clarity in the assessment of threats and as such every service seems to have developed its own assessment and is seen to be working according to it."
The government announced it would increase from 26 percent to 49 percent the allowable level of foreign direct investment (FDI) in Indian defense companies, but overseas firms had hoped for a 51 percent limit to gain managerial control.
An overseas defense company executive said it will be difficult for a foreign company to transfer technology if it lacks corporate control.
"So far we have seen the government capitalizing on the low-hanging fruits that were available for immediate implementation," Bhonsle said, such as increasing the FDI limit.
The FDI increase sent a positive signal to the industry, Cowshish said, but the government still has not established a clear defense policy.
"There is no new 'policy' in place but some steps taken by MoD, such as increasing the FDI cap, allocating funds for a defense railway network, etc., do indicate willingness to chart a slightly different course," Cowshish said. â–
Sep. 7, 2014 - 12:24PM | By VIVEK RAGHUVANSHI
NEW DELHI — The dual responsibilities of defense minister and finance minister handed to Arun Jaitley has given short shrift to India's Defence Ministry, and the quick decisions anticipated on weapons procurement have not been forthcoming, said defense analysts assessing the Narendra Modi government's first 100 days.
The new government so far has simply continued the defense policies of the previous regime, analysts and military officers said.
"The part-time defense minister is one of the most inexplicable oversights," analyst Nitin Mehta said. "It gives too little time to Jaitley to address the MoD, saddled as he is with the task of economic revival. Without a full-time defense minister, the Modi government will not be able to recover from the 'lost decade' of the previous defense ministry under A.K. Antony."
Analyst Venkataraman Mahalingam is even more direct. "How can anyone possibly handle both the defense and finance ministries? These ministries are too important and are heavily loaded to be handled by part-time incumbents. It is not serving any purpose."
While Jaitley is viewed as a capable minister, analysts agreed that giving him both jobs makes no sense.
"There is an urgent necessity for a stand-alone defense minister," analyst Rahul Bhonsle said.
However, analyst Amit Cowshish, a retired MoD bureaucrat, points out "it is obviously not a permanent arrangement. Therefore, I see no reason why the likely long-term impact of this arrangement should be the subject of speculation."
A senior Indian Navy official who requested not to be named said the defense forces had been waiting for the new government to reverse the overly cautious approach of the previous defense minister and speed weapon acquisition. However, no structural changes have been announced so far that would accelerate the process.
The Defense Acquisition Council (DAC) cleared the purchase of six conventional submarines in 2010 but the tender has yet to be floated, the official said.
India has been preparing for the possibility of fighting China and Pakistan simultaneously, but military officers here said more funds and weapon buys are needed to achieve that level of readiness. A single tender can take up to a decade due to bureaucratic delays, an Air Force official said.
For example, the purchase of 126 multirole fighter aircraft has been underway since 2007. The Air Force opted for this buy because the light combat aircraft that India is developing to replace Russian-made MiG fighters is 15 years behind schedule, the official said.
"The new government on Aug. 29 canceled the tender for purchase of the light utility helicopter on technical grounds, while the [Air Force] has been waiting to replace the aging Cheetah and Chetak helicopters it is currently flying for a decade," the service official added.
While some analysts said 100 days is too short a time to assess a government, others claimed the leadership has not yet seriously tackled national security issues.
"No change in course can ever be initiated without a clear national security and national defense strategy," Mahalingam said. "This is yet to be done. There is no clarity in the assessment of threats and as such every service seems to have developed its own assessment and is seen to be working according to it."
The government announced it would increase from 26 percent to 49 percent the allowable level of foreign direct investment (FDI) in Indian defense companies, but overseas firms had hoped for a 51 percent limit to gain managerial control.
An overseas defense company executive said it will be difficult for a foreign company to transfer technology if it lacks corporate control.
"So far we have seen the government capitalizing on the low-hanging fruits that were available for immediate implementation," Bhonsle said, such as increasing the FDI limit.
The FDI increase sent a positive signal to the industry, Cowshish said, but the government still has not established a clear defense policy.
"There is no new 'policy' in place but some steps taken by MoD, such as increasing the FDI cap, allocating funds for a defense railway network, etc., do indicate willingness to chart a slightly different course," Cowshish said. â–
