The Ministry of Defence has proposed not to make any further investments in the state-owned defence production sector which has, over the years, become a drag on the economy. Comment. How defence manufacturing in India can be revived?
Answer: India is the largest arms importer in the world and spends annually on an average about $3.6 billion, which is more than the combined imports of both Pakistan and China.
However, over seven decades of nationhood, the state-owned defence industrial combine, except for missilery, communication systems and some low technology items, has not contributed notably to self-reliance in defence production.
No Accountability: The problem with defence public sector undertakings (DPSUs) is the absence of accountability and the presence of political interference. Also, when the private company delivers the development order the DPSU then arm-twists it to share the production ....
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