Modernisation of Indian Armed Forces After 2014

MODERNISATION OF INDIAN ARMED FORCES AFTER 2014Indian armed forces need modern weapons and technology to match with modern warfare. In the past few years, we have seen something or the other is happening in the armed forces after 2014, govt is looking for better weapons, bulletproof jackets, helmets for the soldiers who are fighting every day to keep us safe. It was really sad that our soldiers were lacking such basic gears since long and now everything has been sorted out one by one. Indian airforce is also getting modern fighter aircraft and decommissioning the old ones, same with the Indian navy. No one can deny that the govt is really working hard to modernize our armed forces which were ignored by the previous govt. Below are some official details related to modernization happened in the Indian armed forces after 2014.

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Budget Estimates, Revised Estimates, Modified Appropriation and Actual Expenditure incurred under Capital Acquisition (Modernisation) Head under Defence Services Estimates (DSE) for the last five years and the current year are tabulated below:-

Year Budget Estimates Revised Estimates Modified Appropriation Expenditure
2013-14 73,444.59 66,406.41 66,201.92 66,850.30
2014-15 75,148.03 66,151.73 65,706.04 65,862.38
2015-16 77,406.69 65,400.00 61,699.39 62,235.54
2016-17# 69,898.51 62,619.36 64,853.86 69,280.16
2017-18* 69,473.41 68,965.24 68,980.89 72,732.20
2018-19 74,115.99 Not yet finalised. Not yet finalised. 54,230.94@

(# figure excludes MF, ECHS, DGQA, NCC, RR, DGOF and R&D)

(* figure excludes MF and ECHS)

(@Expenditure in r/o Financial Year 2018-19 is up to November 2018)

The Final Appropriation has been fully and optimally utilized during the said period. Internal Audit and External Audit of the allocated amount is carried out by CGDA and C&AG respectively.

In May 2001, the Defence Industry sector, which was hitherto reserved for the public sector, was opened up to 100% for Indian private sector participation, with Foreign Direct Investment (FDI) up to 26% both subject to licensing.  Further, Department of Industrial Policy & Promotion, Ministry of Commerce & Industry has notified revised FDI policy under which FDI is allowed under automatic route upto 49% and beyond 49% through Government route wherever it is likely to result in access to modern technology or for other reasons to be recorded.

During the last three years and current year (upto October, 2018) out of total 188 contracts, 121 contracts have been signed with Indian vendors for procurement of defence equipment for Armed Forces such as Helicopters, Survey vessel, Radar, Ballistic Helmets, Artillery Guns, Simulators, Missiles, Bullet Proof Jackets, Electronic Fuzzes and ammunition.

Government is taking measures for modernization of the Armed Forces, through procurement of new equipment and upgrading of existing equipment and systems. The modernization projects are being progressed as per the approved Capital Acquisition Plans and in terms of the extant Defence Procurement Procedure.

Since the launch of ‘ Make in  India’ in September 2014, several measures have been taken by the Government to promote indigenous design, development and manufacture of defence & aerospace equipment in the country under  ‘Make in India’ by harnessing the capabilities of the public and private sector.

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The government has also promulgated the policy of Strategic Partnership in the Defence Sector which encourages the participation of the private sector in the manufacture of major defence platforms and equipment in four selected segments viz. Submarines, Fighter Aircraft, Helicopters and Armoured Fighting vehicles / Tanks.

Details of defence expenditure vis-à-vis Central Govt. Expenditure from 2014-15 to 2017-18 is as follows: (Rs in Crore)

Year Defence Expenditure* Total CGE (Actuals) Def. Exp % of CGE
2014-15 285103.95 16,63,673 17.13
2015-16 294054.93 17,90,783 16.42
2016-17 377542.01 19,75,194 19.11
2017-18 380690.97 22,17,750 17.16

*including Defence Pension.

It is true that the Defence expenditure as per percentage of Central Government. Expenditure has fallen, however, the Defence expenditure in absolute terms has been showing a steady increase.

Defence Projects Under Make In India 
‘Make in India’ in defence sector is primarily driven by capital acquisition of defence equipment and other policy measures taken to promote indigenous design, development and manufacture of defence equipment in the country by harnessing the capabilities of the public and private sector.  In the last three financial years i.e. from 2015-16 to 2017-18, Government has accorded Acceptance of Necessity (AoN) to 111 proposals, worth Rs.1,78,900 crore approximately, under ‘Buy (Indian-IDDM)’, ‘Buy (Indian)’, ‘Buy and Make (Indian)’ or ‘Make’ categories of capital procurement as per Defence Procurement Procedure (DPP), which means Request for Proposal (RFP) is issued only to Indian Vendors.  In the last three financial years i.e. from 2015-16 to     2017-18, 99 contracts worth about Rs.65,471.28 crore have been signed with Indian vendors for procurement of defence equipment.  DPP stipulates a time schedule for completion of the procurement cycle.  The time taken to undertake capital procurement of defence equipment depends on the nature and complexity of the equipment being procured.

The Government had promulgated the Defence Production Policy in 2011 which aimed at achieving substantive self-reliance in the design, development and production of equipment, weapon systems, platforms required for defence in as early       a time frame as possible; creating conditions conducive for private industry to play an active role in this endeavour; enhancing potential of Small and Medium Enterprises (SMEs) in indigenisation and broadening the defence R&D base of the country.  Recently, a draft Defence Production Policy-2018 was prepared and placed in public domain to provide a focused, structured and significant thrust to development of defence design and production capabilities in the country.  The Defence Production Policy 2018 has not yet been finalized.

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