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Defence exports have dropped to 'laughable level'

Contract Killer

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Defence exports of Ordnance have dropped to 'laughable level'
Press Trust of India / New Delhi February 06, 2011, 18:23 IST

Defence exports from the country's Ordnance Factories have fallen to such meagre levels that the quantum is "laughable", a former Army General has said.

Defence exports from Ordnance Factories have slided from "a paltry Rs 41.07 crore in 2008-09 to a laughable Rs 12.28 crore in 2009-10. It is a reflection of the nature and quality of items being produced indigenously," Maj Gen (Retd) Mrinal Suman said.:hitwall::hitwall:

Suman regretted that India has also not been able to produce "a single defence system with cutting-edge technology".

There has been a "total failure" of policies governing foreign and private participation in defence production, with imports rising to as high as 75 per cent in 2009-10, Suman said writing in an article in the premier journal 'Indian Defence Review'.

Maintaining that all hopes raised by the 2002 Defence Procurement Procedure have been "belied", Suman said the last decade has been "a chronicle of tall claims, missed opportunities and inability to translate policies into implementable programmes. The current regime has been a total failure".

To buttress his point, Suman, who himself was associated with defence procurement while in office, said imports have climbed to 75 per cent rather than dropping to the targeted 30 per cent.

"While every critical item is being imported, India continues to be happy producing (aircraft) doors and windows for foreign aviation majors," Suman said in an article in the premier journal 'Indian Defence Review'.

Despite "repeated assertions" of the government to integrate private sector in defence industry, "there is little progress on ground. The private sector continues to be a peripheral player" producing some low-tech items and components, he said.

Building a strong case for turning India into a manufacturing hub, he said for this, it was imperative that foreign direct investment (FDI) flows in.

However, FDI should be technology-centric with inherent flexibility. "It could be 26 per cent for low-tech products, 51 to 74 per cent for matured systems and 75 to 100 per cent for cutting-edge technologies," he suggested.

Observing that all countries leverage offset clauses in consonance with their national economic priorities to fill an important technological or economic void, he said, "Strangely, India does not accept technology against offsets."

With the "current flawed policy", offsets were not contributing to upgrading of the indigenous technological base, he said, calling for amending the current offset policy to make transfer of technology the preferred mode.

Asserting that India must become a key player in the global supply chain, Suman made a strong plea for setting up of a multi-disciplinary 'Defence Capability Development Board' under the Commerce Ministry to oversee the entire gamut of related activities and act as a single window interface for all entrepreneurs.
 
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twocents

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This is off-topic, but I have always had trouble with Indian numerical system using lak & crore. For the benefit of non-Indians, wouldn't it make sense to include the dollar figure, in brackets if possible? Can someone explain?
 

KS

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This is off-topic, but I have always had trouble with Indian numerical system using lak & crore. For the benefit of non-Indians, wouldn't it make sense to include the dollar figure, in brackets if possible? Can someone explain?

1 million = 10 Lakh

100 Lakh = 1 crore

And 1 $ = 45 INR

Do the math.
 

Gabbar

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This is off-topic, but I have always had trouble with Indian numerical system using lak & crore. For the benefit of non-Indians, wouldn't it make sense to include the dollar figure, in brackets if possible? Can someone explain?

$100,000 = 1 lakh
$1 million = 10 lakh
$ 10 million = 1 crore

$1 is eual to Rs.45
 

Whiplash

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On the other hand Pakistan defence exports in 2009 were USD 400 million ,which were expected to grow more in 2010


The export of jf-17 will further increase the defence exports

err.. firstly CHINA will export the jf 17..and secondly this is about ordinance. guns, bullets etc. One single dhruv helicopter costs more than 12 crores.
 

angeldemon_007

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Its an irony that worlds second biggest army has no domestic supplier to supply state of the art guns, helmets and bullet-proof jackets for its armed forces.
In this context Pakistan is way ahead than us. I saw one video in which some Pakistani official was showing the corner-shot prepared by them. Its a shame that we could not develop a good gun for our forces.
Can anybody tell me about the gun which DRDO was preparing as part of FINSAS program ??
 

ajtr

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Who will buy indian defence equipment when its own forces dont buy it.Even if DRDO makes a lathi(stick) for indian police constables it cant be sold they will rather go for import rather than buying one from DRDO which will break easily.
 

GUNS-N- ROSES

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there are several ordanace factories in india which make all kinds of equipment. they make ammunition, rifles, bombs, detonators, fuses, arty guns, arty shells, combat clothing etc.

these factories have typical "babu" culture and and it is this culture which is requiref to be changed. they should know that today's world is fast changing and if they have to remain competetive then they have to develop state of the art technologies. thats why indian armed forces prefer import equipment rather then buying from these badly managed companies.

i think the defence exports in general are rising. HAL is selling ALH aggressively. BEL and BEML are continuously improving their sales. its the ordancace factories which have some catching up to do.
 

angeldemon_007

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Who will buy indian defence equipment when its own forces dont buy it.Even if DRDO makes a lathi(stick) for indian police constables it cant be sold they will rather go for import rather than buying one from DRDO which will break easily.
We have this problem but with private sector. Our OFB produces products according to the need of our forces but many of the times they fail to meet them. The biggest example is INSAS rifle. I don't like orange color on that gun.
 

Mani2020

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Only China can export JF-17.


Pakistan can also export these aircrafts. It is a joint Venture between two countries and both partners have equal rights , if a country wants to buy it ,it has to gain approval from both China as well as Pakistan .

And the profit form the sales will be distributed b/w both partners at same ratio i.e 50-50
 

Mani2020

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Pls read the article carefully..... Its about Ordnance & not about Total defense Export.

The figure i mentioned earlier comprises of large chunk of ordnance as in 2009 the defence equipment exported comprised of large part of ordnance .we are still to export Jf-17 and other aviation goodies ,although we have exported mushak and super mushak aircrafts but that was prior to 2009 ,i don't think any aircrafts were exported in 2009
 

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