India’s Defence Acquisition Council (DAC) recently approved defence projects worth Rs. 80,000 crore. For the navy, Rs. 50,000 crore is expected to be spent on building six submarines for which the Defence Ministry will identify a local shipyard. For the army, the DAC approved the acquisition of over 8,000 Spike anti-tank missiles for Rs. 3,200 crores from Israel, 362 infantry fighting vehicles from the Ordinance Factory Board for Rs. 662 crores and 363 armed personnel carriers to be built for Rs. 1,800 crores. Additionally, the DAC has also approved procurement of 12 upgraded Dornier surveillance aircraft from the Hindustan Aeronautics Ltd. for Rs. 1,850 crores.
Statement:
“The government’s first priority regarding defence spending should be to expedite India’s military modernisation process, which includes the acquisition of military weapons and equipment. The latest defence projects approved by the DAC, particularly for the navy, are much-needed acquisitions which will augment India’s ageing naval fleet and boost indigenous defence production. Additionally, acquisition of the equipment for the army- the Spike anti-tank missiles and armed personnel carriers- will enhance the force’s operational preparedness.
Promoting the local shipbuilding industry was an important dimension of Defence and Finance Minister Arun Jaitley’s budget announcements earlier in the year. Local private shipyards have played a small but impressive role in strengthening India’s maritime capabilities. The government has also taken steps to promote private defence companies. For instance, a project worth Rs. 25,000 crores for landing platform docks was reserved only for the private sector. Industrial licenses for defence production were granted to 19 companies. However, the government will need to ensure strict compliance with deadlines for local shipyards – production and delivery deadlines have been missed in the past, such as with the construction of Scorpene submarines which are four years behind schedule.
Additionally, it is notable that the Spike anti-tank missiles from Israel were approved for acquisition over the Javelin missile system, for which the U.S. was lobbying hard. The decision in favour of Israel’s Spike missiles was made on the basis of criteria like technology offering, range, pricing and delivery time. While the U.S. and India are trying to deepen their defence relationship, the approval of the Spike missiles is also indicative of the Indian government’s marked emphasis on expanding the defence and technology bilateral with Israel, which is already the second largest arms supplier to India.”
For more information or interview requests, please contact Reetika Joshi at joshi.reetika@gatewayhouse.in.