Why not privatize defense sector?

Discussion in 'Defence & Strategic Issues' started by Arnab Banerjee, May 22, 2012.

  1. Arnab Banerjee

    Arnab Banerjee Regular Member

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    Friends, our govt. has opened up many sectors to private competitors. Why not open up or privatize the defense sector? There are following benefits of privatization:

    1] Improvement in quality of weapons due to competition this means Indian army will buy advanced technology weapons.

    2] Reduction of price of weapons due to competition. This will save a lot of the defense budget. Indian army will buy weapons at a cheap rate.

    3] Our enemies will be warned.

    What do you think friends?
     
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  3. Yusuf

    Yusuf GUARDIAN Administrator

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    Eureka!!!!!!
     
  4. H.A.

    H.A. Senior Member Senior Member

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    :lol: Don't tell me you ran naked in the market shouting that....
     
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  5. Yusuf

    Yusuf GUARDIAN Administrator

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    OP did i guess.....
     
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  6. H.A.

    H.A. Senior Member Senior Member

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    What do you exactly mean by "privatise the Defence sector"?

    Do you mean privatise DRDO, HAL, etc? Then let me tell you this, it doesn't work that way, because a lot, i repeat, A LOT of money has to be invested to develop new products and technologies with a high possibility of a failure, private organisations unlike PSU are profit oriented rather than service oriented, hence in the event of a failure they may scrap a product because it failed to delivery rather than find out as to why it failed and refine the product.

    On the other hand, private players like TATA, BHARAT FORGE, MAHINDRA, L & T etc, are being allowed to participate / bid for the tenders floated by the MoD, for the products that they have the capability to develop / or have successfully developed.

    Hence it is more of a mutual co-existence that is the best bet rather than only PSU or Private players.
     
  7. H.A.

    H.A. Senior Member Senior Member

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    ......OP means?
     
  8. Yusuf

    Yusuf GUARDIAN Administrator

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    opening post........
     
  9. Arnab Banerjee

    Arnab Banerjee Regular Member

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    i mean that let the private companies manufacture and sell arms to indian army. in india now only one company, indian ordinance factory is doing it. but if we let private players in, then we have better guns at cheap price.
     
  10. pmaitra

    pmaitra Moderator Moderator

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    I think we need to quit worrying about the Defense Sector and focus on the Education Sector, so that people learn to capitalize.
     
  11. Ray

    Ray The Chairman Defence Professionals Moderator

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    It is being opened.
     
  12. Arnab Banerjee

    Arnab Banerjee Regular Member

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    what do you mean? how many competitor do you have in arms sector? what are their names?
     
  13. Ray

    Ray The Chairman Defence Professionals Moderator

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    Vehicles.

    Ancillaries.
     
  14. Twinblade

    Twinblade Senior Member Senior Member

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    Check out the last 7-8 minutes of this video where Dr V.K Saraswat tells you exactly why private sector isn't churning out weapon systems.

    Walk The Talk with DRDO chief VK Saraswat - Yahoo! News
     
  15. drkrn

    drkrn Senior Member Senior Member

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    first private sector needs commitment from govt or after they develop a weapon and army says no we want changes its a nightmare for private sector
     
  16. smanekshaw

    smanekshaw Regular Member

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    First reduce purchasing times. No one will wait 20 years to sell a product.

    Remove that shit called DRDO from the loop. Deal directly with the armed forces.

    Clear up the tendering process
     
  17. Bangalorean

    Bangalorean Stars and Ambassadors Stars and Ambassadors

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    Nightmare? How have the Lockheeds and Boeings and BAEs of the world grown then?

    The returns are so high that the private sector will manage. The Army will certainly check out the weapon, suggest changes, or request a "better version" in the next batch... actually that is how everything in life works - all businesses. Not just this one.
     
  18. warriorextreme

    warriorextreme Senior Member Senior Member

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    our army people constantly deny using home grown systems by government organizations..may be because they do not get their "share" in deals...
    private sector will indeed increase quality and also their "share" in these deals..
     
  19. no smoking

    no smoking Senior Member Senior Member

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    They grew up in a time that was completely different from today: globalization hasn't hit every country; R&D was not much more expensive than civilian industry; the price advantage of local products was good enough to cover its relatively poor quality; the last but most important, everybody started his develpment almost at the same time, while today your local producers are just kids comparing to those mature companies in US, UK and Russia.

    Before you are able to produce any acceptable products, you have to invest billions of dollars into research equipments, test equipments and production equipments. With such an investment, you may not see any profit in 30 years. It is impossible for any private company to do that without the financial support from government!
     
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  20. drkrn

    drkrn Senior Member Senior Member

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    exactly. indian companies cannot invest huge money without committment from govt.
     

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