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18/09/2019 - Government Policies

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September 18, 2019

Do you think that Make in India policy has been successful in producing indigenous assets in military aviation sector? Critically discuss (200 Words)

Refer - Livemint

Enrich the answer from other sources, if the question demands.


 

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IAS Parliament 5 years

KEY POINTS

In the coming decade, the Indian armed forces are planning to acquire more than 500 aircraft and helicopters in different categories to sustain and bolster their capabilities.

The combat aircraft will replace the fleet of MiG 21 and MiG 27 that are being phased out and the current number is pegged at 114 in addition to 83 Light Combat Aircraft (LCA).

Make in India policy not fruitful

·        According to Ministry of Defence, India has spent over $48 billion on importing major air warfare assets in the last two decades.

·        Project Saras has made no headway and India has always relied on imports, except for very light transport aircraft Do 228 being manufactured under licence.

·        India, with the fourth largest military aviation assets in the world, retains the dubious distinction of operating the largest fleet of foreign-designed aircraft.

·        Although the end-user cannot be held accountable for the failure of the industry to grow, a pragmatic hand-holding approach is necessary owing to very high R&D costs and low probability of success.

·        In the last 50 years, India has led the pack of arms importers in the world with a 7% share—almost double the second-placed Saudi Arabia.

Make in India policy contribution

·        The Defence Acquisition Council (DAC) under Ministry of Defence, cleared defence deals worth more than INR 82,000 crore under ‘Buy and Department of Industrial Policy and Promotion Make (Indian)’ and ‘Buy Indian’ category .

·        The deals include the procurement of Light Combat Aircraft (LCA), T-90 Tanks, Mini-Unmanned Aerial Vehicles (UAV) & light combat helicopters.

·        The narrative in the helicopter fleet seems most encouraging with the success of the Advanced Light Helicopters. But here again, with just 12 helicopters produced last year, soon another imported helicopter may be inducted against a requirement of over 300.

·        The preferential treatment given to Defence Public Sector Undertakings (DPSUs) in excise duty/custom duty has been discontinued to create a level playing field.

·        As per the revised policy, all Indian industries (public and private) are subjected to the same kind of excise and custom duty levies.

For better military aviation

·        Successful models like BrahMos need replication for technology infusion and project implementation.

·        Policy decisions to infuse funds and revitalize and redefine the role and accountability of DRDO, Defence Public Sector Undertakings and Ordnance Factory Board need to be taken now so that results start showing by 2022-2024.

·        Expansion of scale with greater visibility can assist the industry to cut production costs and lead to economies of scale. Alongside, providing a level-playing field to the private sector and hand-holding for initial orders will assist in creating an ecosystem that will pay long-term dividend. 

Chinna 5 years

Kindly review..thank you

IAS Parliament 5 years

Good answer. Keep Writing.

Mirudula Parthibarajan 5 years

Kindly review my answer

IAS Parliament 5 years

Try to provide sub-headings and elaborate more on positives and criticisms part. Keep Writing.

Shivangi 5 years

Please review. Thank you

IAS Parliament 5 years

Good answer. Keep Writing.

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