100% FDI in Defence..Light at the end of tunnel??

[Kumarnishith]

The department of industrial policy & promotion (DIPP) has prepared a draft Cabinet note that proposes to allow up to 100 per cent foreign direct investment in defence as part of its plan to boost domestic manufacturing...of course defence sector is going to benefit the most by this proposal..But does that also mean that we can expect better quality civilians arms in near future??

-Nishith

[Katana]

Somehow I don't think this thinking will help. 100% FDI will mean a by pass of Indian home grown companies. What the government ought to do is make it easier for any and every company in this field to set up manufacturing or marketing it's produce domestically or for the export market. Of course, FDI may get us access to newer technologies but in an emergency or truant scenario, a 100% foreign company operating in India might not be willing to help out the country.

[TC]

Somehow I don't think this thinking will help. 100% FDI will mean a by pass of Indian home grown companies. What the government ought to do is make it easier for any and every company in this field to set up manufacturing or marketing it's produce domestically or for the export market. Of course, FDI may get us access to newer technologies but in an emergency or truant scenario, a 100% foreign company operating in India might not be willing to help out the country.

+ 1
Also, the emphasis should be on complete indigenous production using 100 % transfer of foreign technology. Only that can ensure an Independent yet state of the art production that is also cost effective and within our control when it comes to upgrade.
People will be surprised to know that dependence on foreign suppliers/ producers minus transfer of technology for local production made India virtually a vegetable for decades. Dozens of tanks, for example, might get stranded for a few years for the want of an axle or, in worst and most hilarious cases, a few special screws or pinions, and we would wait for the supplier to quote prices... and the cost of hosting a team of their engineers at the best hotels and facilities and their journey.
There is another crucial issue. 100 % in FDI would also mean people in other parts of the world would know every detail of our military secret.

TC

[Katana]

There is another crucial issue. 100 % in FDI would also mean people in other parts of the world would know every detail of our military secret.

Rather idiotic from the government's point of view, but so true.

But does that also mean that we can expect better quality civilians arms in near future??

I don't think so. Making firearms is one thing, but providing licenses for those firearms is another matter. Unless the licensing regime is streamlined and licenses made available to citizens, manufacturing firearms for the domestic sector makes no sense. Maybe, the investor/ manufacturer could look for markets abroad, which is highly plausible.

IMHO, this is an act of desperation. Failure of the DRDO, IOF, various scams and black lists, idiotic babus, the list is endless. But the most important reason I feel is the lack of trust of the government in it's own citizens has compounded the matter to such an extent that now clearing 100 % FDI in the defense sector is akin to begging the world for arms and their related technology. A myopic policy of defense production has reduced us to beggars, literally.

[shooter.177cal]

The department of industrial policy & promotion (DIPP) has prepared a draft Cabinet note that proposes to allow up to 100 per cent foreign direct investment in defence as part of its plan to boost domestic manufacturing...of course defence sector is going to benefit the most by this proposal..But does that also mean that we can expect better quality civilians arms in near future??

-Nishith

hoooo, I was just going to post the exact thing.

today i saw drdo director giving interview saying that 100 % FDI will be good, he will support this proposal so fdi is comin......

i appreciate this step cuz i felt that at if fdi starts comin in "arms" sector maybe one day govt. will allow production in civilian sector.

i definitely do see some light, but i have no idea how long this light will last.