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India’s Foreign Arms Dependency

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March 13, 2017

Why in news?

Parliament’s Standing Committee on Defence released a new report

What are the findings of the report?

  • This report is an authoritative declaration from the government of India.
  • The United States has been India’s biggest supplier of weapons platforms over the past three years.
  • It is followed by Russia, Israel and France in that order.
  • India concluded contracts worth around Rs 29 crore with the US during 2013-14, 2014-15 and 2015-16.

  • India also signed contracts worth around Rs 7000 crore  with others, which include Germany, the UK, Ukraine and Poland.
  • The committee also demolishes the myth of substantial indigenous production by citing orders placed on defence public sector undertakings (DPSUs) and Ordnance Factories (OFs).
  • The report details the extent to which orders for “indigenous” weapon systems and equipment actually pay for imported equipment.

  • This is because the equipment supplied by DPSUs and OFs contains many components, sub-systems and systems acquired from foreign vendors.
  • e.g Hindustan Aeronautics Ltd retains the import content of the Sukhoi-30MKI fighter at 44%, even after building it in India under licence for over a decade.

 

 

Source: Business Standard

 

 

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