As much as i agree with the above I am a firm believer of privatization of the Indian defence manufacture, not taking the hardwork put by the OFB the output is not enough. For Ex :
India designed the 105 Indian Field Gun with in the 60's (correct me if i am wrong ) and after the order was completed did they do any followup development NO they simply sat on it and imported Bofors gun in the "1980's" no doubt it worked wonderfully and played a greater role in the Kargill but India could have developed that a gun like Bofors if they had involved private sector . let me explain if they would have let the private companies develop the gun they would have further invested in R&D and developed and improved the 105mm IFG.
similarly INSAS was with private companies they would have improve it to the latest standard and also India is the only country which doesnot have its own designed pistol they License porduce a ww2 era gun. not just that since i have come from a Public sector background where my Dad is a retired employiee of a Defence PSU and i did my training in that PSU post Engineering i know how the R&D and the production works.
Conclusion : As-long as the private sector is not involved the Indian Defence Market will be dominated by Foreign companies and we will be worlds largest importer and never be self sufficient in defence production
i love your confidence in Pvt sector
but i dont agree with you
just a few questions
Tata steel is more than 100 years old co in the steel sector right ?
now tell me what uniquness it boasts in the mettalurgy sector ?
what technology development r&D has it carried out in mettalurgy ?
when DRDO was developing special ship grade steel for IN ships & Subs - did ti come forward to invest in R&D (neither money nor efforts)
Did it take up any chllenge in developing metallurgy for Gun barells ?
Tata Motors / Maruti Suzuki / M&M
when DRDO is developing 1800 Hp engines 1200 hp engines 1500hp engines
have any of them invested in R&D - has any of these big Pvt Secotr come forward and said look we here we have developed a prototype engine take it test it - point out shortfalls we will improve it & now give us orders ?
there are many many such examples do you want me to go on
So pl take this PVt secotr will do wonders theory with a pinch of salt
what our whole pvt sector is interested in is a
Make in India policy
49% FDi so they get to retain control
tie up with foreign cos - become labour shop - assemble in india
get assured biz and assured margins
i..e they are interested in purely Rent Seeking
the above applies to 97% of indias pvt sector
there is an excception of 3% to the above mentioned scenario
and those 3% should be encourged
notable are
Bharat Forge
L&T
Pipavav
Taneja Aerospace
M&M (gipps aero)
and a host of MSMEs who are coming up the hard way and creating and owning IPs