India spends more on Indigenous Defence Equipment’s then on Imported Ones

[shree835]

has spent more money on purchase of indigenous defence equipment compared to imports. According to information provided by the government of India, This information was given by Defence Minister Shri AK Antony in a written reply to Shri BhupendraYadav in RajyaSabha today.

With a view to achieve greater self reliance in Defence production, the Defence Industry was opened up for Indian Private Sector participation in May 2001 with FDI permissible upto 26%, subject to licensing. The `Make` Procedure was promulgated in 2006 to encourage indigenous development. Government included a categorization `BUY & MAKE (Indian)` in the Defence Procurement Procedure in November, 2009 to encourage indigenous production. There is also provision for 30% offset obligation in all Capital Acquisitions categorized as Buy (Global) or Buy & Make with ToT where the estimated cost of the acquisition proposal is Rs.300 crore or more. Government has announced the Defence Production Policy in January, 2011 and Joint Venture Policy for DPSUs in February, 2012.


India spends more on Indigenous Defence Equipment’s then on Imported Ones | idrw.org

 

[trinity]

has spent more money on purchase of indigenous defence equipment compared to imports. According to information provided by the government of India, This information was given by Defence Minister Shri AK Antony in a written reply to Shri BhupendraYadav in RajyaSabha today.

With a view to achieve greater self reliance in Defence production, the Defence Industry was opened up for Indian Private Sector participation in May 2001 with FDI permissible upto 26%, subject to licensing. The `Make` Procedure was promulgated in 2006 to encourage indigenous development. Government included a categorization `BUY & MAKE (Indian)` in the Defence Procurement Procedure in November, 2009 to encourage indigenous production. There is also provision for 30% offset obligation in all Capital Acquisitions categorized as Buy (Global) or Buy & Make with ToT where the estimated cost of the acquisition proposal is Rs.300 crore or more. Government has announced the Defence Production Policy in January, 2011 and Joint Venture Policy for DPSUs in February, 2012.


India spends more on Indigenous Defence Equipment’s then on Imported Ones | idrw.org

Read up pur defence industry is getting better with support....maybe one day it will

 

[arp2041]

Don't know how to feel about this news. We import 70% of our defence needs & indigeneously make 30%, so according to report we spend more money on 30% of our defence equipments than on 70% imported ones??

 

[trinity]

Don't know how to feel about this news. We import 70% of our defence needs & indigeneously make 30%, so according to report we spend more money on 30% of our defence equipments than on 70% imported ones??

Damn didn;t read the report and just saw your post....knew it was too good to be true.....****

Don't know how to feel about this news. We import 70% of our defence needs & indigeneously make 30%, so according to report we spend more money on 30% of our defence equipments than on 70% imported ones??

Arp can you read what I say?

 

[ajtr]

Possible coz india dont buy most of foreign made equipment of the shelf lik KSA.India builds those foreign equipment in india with almost 50% amount of the deal getting invested into india itself.But i dont know how that can be termed as indigenous.Haan labor sure is indigenous.

 

[arp2041]

Arp can you read what I say?

sorry?? what do u mean?

 

[scorpionx]

I wanna see an indigenous turbo fan engine in my lifetime. DRDOjee iis bande ki akhri murad puri kardo

 

[trinity]

sorry?? what do u mean?

I meant could you read my thread on Assam on Indian defence

 

[UKBengali]

Can someone tell me what the split between indigenous and imported equipment was in 2000?

 

[Abingdonboy]

I think there are certain things that are sekewing the figures. Firstly ,as stated, these figures include foreign made products that are made in India under the "BUY & MAKE" policy. With this being a mandatory policy that has to be followed for any purchase over a certain figure and with more and more foreign companies tieing up with Indian companies with JVs in order to meet this policy then the number of forign products made in India is shooting up but it is clear that these are not Indian products. Deals bought off the shelf through US FMS or other routes are few and far between when compared to the deals that involve licence production in India. It is clear today India is still very much reliant on foreign companies/nations for high-end defence equipment but the dependency is only going to reduce in time.

 

[Boson]

Don't know how to feel about this news. We import 70% of our defence needs & indigeneously make 30%, so according to report we spend more money on 30% of our defence equipments than on 70% imported ones??

This is incorrect.

I suggest you re-read the news item ....

India's defence budget is about $40 billion per year.

The defence imports are about $3 billion per year.

So, 90% of the defence spending is spent in India itself.

The $ 3 billion imports is all equipment... but the big chunk goes to large capital items. However, about 70% of the hardware, even though of foreign-make, gets built in India. (e.g. 70% of Mig-21s with IAF are made in India; so are the Su-30MKIs).

Just HAL's annual revenue is $2.36 Billion. Add-in the annual revenue of ordnance factories; private defence contractors - Tata, M&M, L&T. Add annual revenue of defence shipyards. Add annual revenues of defence PSUs : BDL, BEL.. bla bla.

The equipment purchase could be atleast $15-20 billion (all the above items are equipment purchase). Even then, spending $20-25 billion on salaries, fuel and rations is quite a big amount.

So, with $ 3 billion imports per year in a (atleast) $15 billion equipment purchase.... still the ratio is 20% imports versus 80% indigenous procurement.

This does not hide the fact that $ 3 billion imports all consist of high visibility items; while the foundation of defence machinery is indigenous, yet not too visible.

See, the annual defence imports by India:

Arms industry - Wikipedia, the free encyclopedia

 

[acetophenol]

The amount of defence equipments that are made in india indegenously and by ToT is huge. Sadly most people,including indian members doesn't know that!

 

[Raje amar]

good news for Indians....
we must pramot the Pvt. Ind. of India. they will definately perform better with the help of all the TOT accumulated till date & also in the future.

 

[arp2041]

This is incorrect.

I suggest you re-read the news item ....

India's defence budget is about $40 billion per year.

The defence imports are about $3 billion per year.

So, 90% of the defence spending is spent in India itself.

The $ 3 billion imports is all equipment... but the big chunk goes to large capital items. However, about 70% of the hardware, even though of foreign-make, gets built in India. (e.g. 70% of Mig-21s with IAF are made in India; so are the Su-30MKIs).

Just HAL's annual revenue is $2.36 Billion. Add-in the annual revenue of ordnance factories; private defence contractors - Tata, M&M, L&T. Add annual revenue of defence shipyards. Add annual revenues of defence PSUs : BDL, BEL.. bla bla.

The equipment purchase could be atleast $15-20 billion (all the above items are equipment purchase). Even then, spending $20-25 billion on salaries, fuel and rations is quite a big amount.

So, with $ 3 billion imports per year in a (atleast) $15 billion equipment purchase.... still the ratio is 20% imports versus 80% indigenous procurement.

This does not hide the fact that $ 3 billion imports all consist of high visibility items; while the foundation of defence machinery is indigenous, yet not too visible.

See, the annual defence imports by India:

Arms industry - Wikipedia, the free encyclopedia

mate, i want to make some points here:

1. The link which u provided gives data of 3.3 billion dollars of import for 2010 (u r comparing imports of 2010 with current budget), when India's defence budget was around 32 billion dollars & not 40 billion dollars, out of that capital expenditure was only around 7-8 billion dollars, rest was spent on normal operating cost.

2. The point which u raised that we buy & make defence equipments at HAL (licensed production) so it is like indegineous is flawed, making defence equipments under license is not equal to making them indegineously, this is like saying if coke has an Indian factory so the coke is an Indian product.

3. HAL & DRDO's annual revenue u r talking about also includes the exports + the civilian tech they develop, so all revenue is not from Indian military.

+ defence minister (i think) has distorted the figures very well, he has also included all the license produced weapons as made indegineously, as now we make nearly all the weapons under buy & make category & minimize direct off the shelf buy.

 

[RISING SUN]

I think here government is saying made in India is indigenous, not developed in India(not primarily, it's included in indigenous category with made in India as well).