‘Investments Are Slow In Defence As There Is No Predictability'
Businessworld|August 18, 2018

ECONOMIC ADVISER in the Ministry of Defence, Rajib Kumar Sen is credited with formulating policies on defence offsets. He is also closely associated with the budgeting plan for the Indian armed forces. In an exclusive chat with Manish Kumar Jha, Sen talks about the Draft Defence Production Policy and offsets and how changes in it will enable domestic manufacturers to meet high quality military hardware requirements. 

Manish Kumar Jha
‘Investments Are Slow In Defence As There Is No Predictability'

The Draft Defence Production (DDP) Policy 2018 aims to make India one of the world’s top five defence manufacturing hubs by 2025 with self-reliance in 13 areas and achieve exports of Rs 35,000 crore ($5 billion). How realistic is the vision?

This has been drafted keeping the future in mind. It is not yet approved, but the process is on. I think it is a very good document to follow. It is a bit ambitious but I think we have to be ambitious if we have to achieve something, specially the export target of Rs 35,000 crore, which may look very high but there his potential. I think it makes a lot of sense to try achieving these goals.

Assuming the economy grows at 7 per cent on an average, in order to achieve the export target stated in the draft policy, the defence sector will have to grow at 15-20 per cent on a consistent basis. Is the target unrealistic?

It has nothing to do with percentages. As you know, the defence sector has lots of negative areas. For instance, we cannot buy from certain countries, we cannot sell to certain countries. It is not as if we are factoring in only economic growth. For instance, we are buying so many things from Russia, and we are also opening up to the US – the US has technology and sharing has started. So, we are looking at countries that are friendly towards us, especially the Asean and African countries. There is a lot of scope for export as many of the exportable items already exist with us. Some of these items have yet to be fully indigenised but we are in the process of doing so. So, given these capabilities I don’t’ think that the export target will be dependent only on high economic growth. We are in a position to exploit and increase our exports within the current rate of economic growth.

How do you think it’s possible? We would like to understand why we have not attracted enough FDI in defence?

هذه القصة مأخوذة من طبعة August 18, 2018 من Businessworld.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.

هذه القصة مأخوذة من طبعة August 18, 2018 من Businessworld.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.

المزيد من القصص من BUSINESSWORLD مشاهدة الكل
MEMORIES & IMPRESSIONS
BW Businessworld

MEMORIES & IMPRESSIONS

Ratan Tata was an exceptional human being. He was a visionary leader, esteemed industrialist, and a humanitarian, who left an indelible mark on India and the world.

time-read
3 mins  |
October 19, 2024
The Robotaxi Market
BW Businessworld

The Robotaxi Market

The robotaxi market is shaping up to be a high-stakes battleground as tech giants and automakers race to transform urban mobility.

time-read
1 min  |
October 19, 2024
And the Nobel Prize Goes to AI
BW Businessworld

And the Nobel Prize Goes to AI

The recent Nobel Prize T awards to AI pioneers affiliated with Google have sparked a broader conversation about Big Tech's influence on research and the limitations of traditional prize categories.

time-read
1 min  |
October 19, 2024
Ola Electrified
BW Businessworld

Ola Electrified

Once considered a trailblazer in India’s electric vehicle (EV) ecosystem, Bhavish Aggarwal’s Ola Electric now faces a major accountability crisis.

time-read
1 min  |
October 19, 2024
Sharp Slide in Industrial Output on Eve of Deepavali
BW Businessworld

Sharp Slide in Industrial Output on Eve of Deepavali

India’s index of industrial production (IIP) saw a sharp reversal in August, contracting by 0.1 per cent, in stark contrast to the 4.7 per cent growth in July, mostly because of significant contractions in mining and electricity generation.

time-read
1 min  |
October 19, 2024
Heralding the Solar Era with Sustainable Electrification
BW Businessworld

Heralding the Solar Era with Sustainable Electrification

RAJEEV KASHYAP on the economics of solar power, the hurdles in scaling it, and much more

time-read
2 mins  |
October 19, 2024
A WELL-GREASED MACHINE
BW Businessworld

A WELL-GREASED MACHINE

The OmniBook X14 laptop runs on first-generation Snapdragon X Elite, which bets big on Al-enabled productivity and battery life, but falls short when it comes to overall experience, says Deep Majumdar

time-read
4 mins  |
October 19, 2024
DO NOT LETA HEALTH CRISIS RUIN YOUR FINANCIAL HEALTH
BW Businessworld

DO NOT LETA HEALTH CRISIS RUIN YOUR FINANCIAL HEALTH

For a family of four living in a metro, it is recommended to opt for a family floater health insurance plan with a sum insured of at least Rs 15-20 lakh

time-read
7 mins  |
October 19, 2024
Disruption Ahead: Beyond Organisation Charts and Structures
BW Businessworld

Disruption Ahead: Beyond Organisation Charts and Structures

ALBERT EINSTEIN FAMOUSLY said, “We cannot solve our problems with the same thinking we used when we created them.

time-read
3 mins  |
October 19, 2024
Dr. Rahul Shivajirao Kadam: A Visionary Leader Blending Sustainability, Innovation, And Social Empowerment
BW Businessworld

Dr. Rahul Shivajirao Kadam: A Visionary Leader Blending Sustainability, Innovation, And Social Empowerment

We are on the stage of global warming, and these technologies not only help prevent further damage but also leave behind a better environment for future generations.

time-read
2 mins  |
October 19, 2024