SP's MAI

Will the lion roar as it should?

- SP’s M.A.I., Publisher & Editor-in-Chief

As we head to the 11th edition of Aero India in Bengaluru, the highpoint of the Narendra Modi Government — ‘Make in India’ initiative — resonates loud and clear. It is a highly laudable initiative considerin­g that we have been an import-dependent nation as far as aerospace and defence systems go. And we have the dubious distinctio­n of being the world’s top importer of weapons, accounting for nearly 14 per cent of global imports, the highest for any country.

In this issue of the focus is on where we are heading as a country when it comes to Modi’s pet subject — ‘Make in India’. Air Marshal B.K. Pandey (Retd) opines that the highly mechanised lion, representi­ng the spirit of the ‘Make in India’ campaign, will begin to roar, only when there is a major overhaul of the bureaucrat­ic establishm­ent and the government machinery.

Air Marshal Pandey talks about intent and capability and states that while there has been some progress in the campaign, there is a lot more ground to be covered to make it easier for the original equipment manufactur­ers (OEMs) and Indian entities to engage in collaborat­ive efforts in India. Ease of doing business is one aspect which keeps cropping up now and then as hurdles remain with a bureaucrac­y which is steeped in ‘bureaucrat­ic ways’.

Substantia­ting the government’s approach is the Secretary of Defence Production, Ashok Kumar Gupta who in an interview mentions that the focus is on achieving the ‘Make in India’ vision by according priority to ‘Buy (Indian-IDDM)’ and ‘Buy (Indian)’ categories. The government has simplified provisions for funding of 90 per cent of developmen­t cost by the government to Indian industry and earmarking projects not exceeding developmen­t cost of ` 10 crore (government funded) and ` 3 crore (industry funded) for the micro, small and medium enterprise­s (MSMEs). This would help create an ecosystem in defence manufactur­ing, key to fulfilling the vision of ‘Make in India’.

A whole lot is happening around this time. The Finance Minister Arun Jaitley announced ` 2,74,114 crore for defence, from which the Ministry of Defence excludes ` 11,724 crore allocated for Defence (Civil Estimates). In an analysis Laxman Kumar Behera states that with a share of 1.56 per cent in the estimated gross domestic product (GDP) of 2017-18, the defence budget is the lowest since 1956-57. And among the three Services, Air Force is the only service whose modernisat­ion budget has increased whereas both Army and Navy have witnessed a decline in their respective budgets. Behera is concerned about the trend of underutili­sation of the defence budget, despite the numerous improvemen­ts in procuremen­t procedures that have happened in the recent past. In 2016-17, only 12 per cent of the total modernisat­ion budget of ` 70,000 crore is available for signing new schemes.

Echoing similar anguish is Lt General P.C. Katoch (Retd) who states that it is distressin­g that ` 35,000 crore was unspent in 201617, whether this is on account of red tape or other reasons, it is criminal considerin­g the poor state of equipping the armed forces with cutting-edge equipments. It is hoped that there would be course correction.

Please visit SP Guide Publicatio­ns at Hall AB (AB3.46) during

Aero India at Bengaluru from February 14-18, 2017.

Happy reading!

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 ?? Jayant Baranwal ??
Jayant Baranwal

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