PM Modi for indigenous manufacturing to cut defence budget by 50%

[PARIKRAMA]

Good thinking by Namo and You but question is it possible to slash down Defence budget upto 50% or just 50% foriegn exchange saving. TOT manufacturing is not always benificial and sometimes more costly.

@MilSpec Your take Do you think cost could be lower upto 50%

What he means is using inhouse developed portions or more indigenous content in the def programs. TOT programs would cost untill we reach economies of scale and master the % of indigenous content absorption into main products also efficiently till we reach the Break even units. lIcence manufacturing is also costly as we do need to pay royalties.
Consider Su30 produced in Russia at say approx 250 crs versus double price in Nasik plant . True it integrates many things and has good indigeneous content. But if we remove those israeli and other parts and compare a russian produced jet with MKI with indignenous effort we may see at best a parallel pricing with a difference of 10-20% permium except royalties. But the best part is that premium is getting recycled back to indian economy and that helps us much more any given day.

 

[Echo_419]

A noble objective that I feel is aimed at the masses. No firm commitment has been made, all the PM has said is "it would be nice" to do this. But, as he is aware, the world is not a utopian place and the globe is getting less unstable with each passing year. If Modi didn't take defence seriously he wouldn't have made Doval the NSA, the PM is no fool.

Long term India's defence budget as a proportion of GDP should be reduced but given the size of the Indian economy today) defence spending is already far too low (1.78%= only $40BN USD).

20-30 years is a more realistic timeframe IMHO.


Having said that, where are all the idiots who have labelled him a blood-thirsty hawk set on global military domination? I saw many British media article in May 2014 rushing to call him "India's Putin". These statements, even if they do not signal an explicit policy, are welcome as it is reaffirming many ideals India has tried to articulate over the years- peaceful rise, uplifting all Indians is the priority etc etc


In certain cases importing is needless (the basics and increasingly advanced systems) but until the Indian military industrial complex is world class on all fronts it is pretty silly to arbitrarily state we will be 100% self-reliant by X date. You may be able to get 2 LCAs for 1 Rafale but the 1 Rafale may be as capable as 3-4 LCAs (if not more).

This is a far more nuanced discussion that simply stating figures would not present.


Indeed and, to be fair, this is an extension (at least in the defence sector) of past policies and DPPs- "Buy and Make India" has been a staple of large defence deals for over a decade now- at least on paper.

I am still eagerly awaiting the new DPP that Marrikar had promised "in 2-3 months" in March 2015 that is said to make incentivise MII significantly.

I agree on you defense along with R&D has been a disappointment.I hope in the remaining 3.5 years they are able to boost R&D spending to somewhere around 3-4%

 

[Hindustani78]

In certain cases importing is needless (the basics and increasingly advanced systems) but until the Indian military industrial complex is world class on all fronts it is pretty silly to arbitrarily state we will be 100% self-reliant by X date. You may be able to get 2 LCAs for 1 Rafale but the 1 Rafale may be as capable as 3-4 LCAs (if not more).

This is a far more nuanced discussion that simply stating figures would not present.

Indian Military planners are aware of what they are doing .

Buying 126 Rafales would be the biggest deal in Indian military history but what would be the use if Indian Scientists can produce world class technology at home .

Tejas will be keep on upgraded and more and more advance technology will be added every year.

 

[SarthakGanguly]

That's what I am talking about.

 

[Abingdonboy]

Indian Military planners are aware of what they are doing .

I have no doubt and this is why the PM has not made any firm commitments about reducing defence spending- he has simply stated an intent (based on mostly utopian fantasies).

Buying 126 Rafales would be the biggest deal in Indian military history but what would be the use if Indian Scientists can produce world class technology at home .

Apparently the GoI has (or is about to) sign India's largest ever (stand alone) defence buy (the S400) with almost no immediate industrial benefits (would be a largely off the shelf procurement). Clearly the GoI, rightly, has no problem importing where there is a requirement to do so- the same case can be made for a Rafale buy (that will have far more tangible immediate industrial benefits for India).

 

[lightoftruth]

Deliberately sensational headline,he was talking about spending on defense imports to be reduced to 50 % of current levels from which the amount saved could be directed towards education.

Budget will anyway increase that too substantially with OROP, 7th pay commission ,increased clearances.

 

[proud_indian]

He must have meant "defence imports" and not defence bufget!

 

[south block]

Great leader with great vision for our nation... We are blessed to have him as our leader... 21st century is India's. And Modi will the the Architect of Superpower Modern India. Ground work and strong basements being laid by him. Seeds will become tree and yield fruits, oxygen Shadow for our kids. Massive respect for this great leader. I love Modi Gi

You should delete your stupid post, you are nothing but a emotional clown & what's the fetish with being supa powa no wonder Chinese troll India everywhere in this forum

 

[Ind4Ever]

don't be emotional.. it need lot of ground work to achieve such target... am not sure about his greatness.. even if he have indigenous defence hubs... cost will not that low as you are expecting... and the price of defence products will increase year by year... I don't buy such paper statements.. I prefer realistic achievements..

Out of focus!!! If we can achieve even 10% decrease in defence budget with same capability of 10% more then is it not an achievement? That too in future weapons gonna get red hot price tag in the name of advancement. So at that time if we don't have indegineous capabilities to produce weapons for our needs then we are fcuked!!!

What he is doing now is to create broad and strong basements on which future generations can built miracles. Name a one good leader who has or had these visions for our nation.

You should delete your stupid post, you are nothing but a emotional clown & what's the fetish with being supa powa no wonder Chinese troll India everywhere in this forum

LOL what fetish to be a super power!??? It's all about becoming a super power. It means More prosperity More respect More Safety for our people. We will push ahead. Try try till you succeed. We will be in better place than China for sure. Font trolls can troll that's why you called them "Troll". Who cares

He must have meant "defence imports" and not defence bufget!

Both are same. Less import means more investment more jobs in India. And more importantly cheaper than imports.

 

[south block]

Out of focus!!! If we can achieve even 10% decrease in defence budget with same capability of 10% more then is it not an achievement? That too in future weapons gonna get red hot price tag in the name of advancement. So at that time if we don't have indegineous capabilities to produce weapons for our needs then we are fcuked!!!

What he is doing now is to create broad and strong basements on which future generations can built miracles. Name a one good leader who has or had these visions for our nation.


LOL what fetish to be a super power!??? It's all about becoming a super power. It means More prosperity More respect More Safety for our people. We will push ahead. Try try till you succeed. We will be in better place than China for sure. Font trolls can troll that's why you called them "Troll". Who cares


Both are same. Less import means more investment more jobs in India. And more importantly cheaper than imports.

Your are dumber than what I thought how old are you

 

[Ind4Ever]

Your are dumber than what I thought how old are you

12 why any problem?

 

[south block]

12 why any problem?

Thought so at least think before what you write on international forum

 

[raj76]

So only sanghis have the right to have Indian nationality hmm @jamahir tu to gaya

Thought so at least think before what you write on international forum

damn why so serious bro

 

[vsdave2302]

So Modi wants to cut the defence Budget to 0.95% of the GDP
That will mean that Indian defence budget will only increase to 50 Billion USD from 40 Billion USD by 2020, a minor 20% increase over a 5 year period

Take a small example. If you buy a Howitzer from outside, It may cost you 12 to 20 crore. Indigenous guns are 30% cheaper. This means a savings of 3.6 to 6 crore. This means 2 very decent schools in village. This is the power of indigenization.

 

[Archie]

Take a small example. If you buy a Howitzer from outside, It may cost you 12 to 20 crore. Indigenous guns are 30% cheaper. This means a savings of 3.6 to 6 crore. This means 2 very decent schools in village. This is the power of indigenization.

Also our Defence Budget has gone down from 2.4% of GDP in year 2011 to 1.9% of GDP in 2015
And with Jaitley and Parikar at the Helm, its expected to fall down to 1.7% in 2016, mainly on account of revised GDP estimates