Indian Arms Exports Fall to 'Laughable' Level

Discussion in 'Defence & Strategic Issues' started by Someoneforyou, Feb 9, 2011.

  1. Someoneforyou

    Someoneforyou Regular Member

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    ‘Defence exports have dropped to laughable level’
    6 February 2011

    Defence exports from the country’s Ordnance Factories have fallen to such meagre levels that the quantum is “laughable”, a former Army General has said.

    Defence exports from Ordnance Factories have slided from”a paltry Rs 41.07 crore in 2008-09 to a laughable Rs 12.28crore in 2009-10. It is a reflection of the nature and quality of items being produced indigenously,” Maj Gen (Retd) Mrinal Suman said.

    Suman regretted that India has also not been able to produce “a single defence system with cutting-edge technology”.

    There has been a “total failure” of policies governing foreign and private participation in defence production, with imports rising to as high as 75 per cent in 2009-10, Suman said writing in an article in the premier journal ”Indian Defence Review”.

    Maintaining that all hopes raised by the 2002 Defence Procurement Procedure have been “belied”, Suman said the last decade has been “a chronicle of tall claims, missed opportunities and inability to translate policies into implementable programmes. The current regime has been a totalfailure”.

    To buttress his point, Suman, who himself was associated with defence procurement while in office, said imports have climbed to 75 per cent rather than dropping to the targeted 30per cent.

    “While every critical item is being imported, India continues to be happy producing (aircraft) doors and windows for foreign aviation majors,” Suman said in an article in the premier journal ”Indian Defence Review”.

    Despite “repeated assertions” of the government to integrate private sector in defence industry, “there is little progress on ground. The private sector continues to be a peripheral player” producing some low-tech items and components, he said.

    Building a strong case for turning India into a manufacturing hub, he said for this, it was imperative that foreign direct investment (FDI) flows in.

    However, FDI should be technology-centric with inherent flexibility. “It could be 26 per cent for low-tech products,51 to 74 per cent for matured systems and 75 to 100 per cent for cutting-edge technologies,” he suggested.

    Observing that all countries leverage offset clauses in consonance with their national economic priorities to fill an important technological or economic void, he said, “Strangely,India does not accept technology against offsets.”

    With the “current flawed policy”, offsets were not contributing to upgrading of the indigenous technological base, he said, calling for amending the current offset policy to make transfer of technology the preferred mode.



    Source: http://www.business-standard.com/in...ropped-to-\\039laughable-level\\039/124864/on
     
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  3. joe81

    joe81 Regular Member

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    Indians are happy buying things from abroad. New meaningful systems can only be developed only if the private players also contribute. Till private players contribute exports will be near to ZERO
     
  4. Dark Sorrow

    Dark Sorrow Respected Member Senior Member

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    This guy is giving half the picture. The demand is so huge on local level that there is very little scope for exports. Also the OFB and other defense industries are neither mechanized nor automated thus limiting the quantity and quality and looking at our policies neither mechanization nor automation can be implemented.
    Until we have privatization in the defense sector the situation will change.
     
  5. Kunal Biswas

    Kunal Biswas Member of the Year 2011 Moderator

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    I agree here....

    There is no question abt the product deign and capability, But how it is produced..

    Private Sector should produce Army`s small arms..
     
  6. sukhoi30mki

    sukhoi30mki Regular Member

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    its due to monopoly of DRDO.
     
  7. neo29

    neo29 Senior Member Senior Member

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    Currently we must have good amount of productions lines for our fighters, tanks, ships and other hardware. We are good at delays to induct in our own forces. With such a problem India must not think much of exports. Make yourself self sufficient and worthy enough for a good exporter.
     

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