Indian Defence Industry: An Agenda for Making in India Mukesh Sharma M.A. in Political Science q=SUMIT ENTERPRISES NEW DELHI (INDIA) CONTENTS Preface v 1. Security Environment 1-9 Global Security Environment 1 The Regional Security Environment 4 Internal Security Environment 9 2. Organisation—Rganisation and Functions of the Ministry of Defence 10-16 Organisational Set-Up and Functions 10 The Ministry and Its Departments 11 Headquarters Integrated Defence Staff (HQIDS) 11 Armed Forces Tri-Services Institutions 13 Defence Cooperation Activities 14 Initiatives in the Medical Field 14 Centre for Joint Warfare Studies(CENJOWS) 15 Armed Forces Tribunal 15 Defence (Finance) 15 3. Indian Army 17-38 History 18 Mission and doctrine 30 Organisation 30 Personnel 34 Equipment 35 4. Indian Navy 39-54 History 39 Command and Organization 44 Equipment 47 Activities 51 Future of the Indian Navy 53 Accidents 54 Indian Naval Ensign 54 5. Indian Air Force 55-73 Mission 55 History Structure Personnel g6 Aircraft inventory 68 Land-based missile Systems 71 Future of the Indian Air Force 71 6. Indian Coast Guard 74-82 History 74 Today 76 Personnel 77 Equipment 80 Organisation 80 Duties and Functions 80 Coastal Security 81 Significant Milestones and Achievements 81 7. Defence Research and Development Organisation 83-128 History 83 Projects 84 8. Defence Companies of India 129-170 Bharat Earth Movers 129 Bharat Dynamics Limited 132 Bharat Electronics Limited ^34 BrahMos Aerospace 140 Field Gun Factory, Kanpur 140 Gun Carriage Factory Jabalpur 141 MKU (Company) 142 Ishapore Rifle Factory 143 Hindustan Aeronautics Limited 144 In-house developed products 147 Heavy Vehicles Factory 148 Heavy Alloy Penetrator Project 148 Ordnance Clothing Factory 149 Ordnance Gable Factory Chandigarh 188 Ordnance Clothing Factory, Shahjahanpur j8 Ordnance Factories Board Ordnance Factory Medak Ordnance Factory Tiruchirappalli Tata Advanced Systems „ Tata Motors 169 Vehicle Factory Jabalpur 9. Civil-Military Relations in a Nuclear India 171-193 Theoretical Background: Nuclear Proliferation and Civil-Military Relations 172 Civil-Military Relations in India: A Historical Overview 175 Framing of India's Nuclear Doctrine: 1998-2003 177 Nuclear Command and Control in india 184 Implications for Civil-Military Relations 188 Conclusion 193 10. Market Attractiveness and Emerging Opportunities 194-217 Defense Market Size Historical and Forecast 194 Hostile neighbors and modernization initiative will be the industry's primary growth drivers 195 Analysis of Defense Budget Allocation 196 Homeland Security Market Size and Forecast 198 Benchmarking with Key Global Markets 201 Market Opportunities: Key Trends and Drivers 202 Defense Procurement Market Dynamics 204 Industry Dynamics 206 Market Entry Strategy 208 Competitive landscape and Strategie Insights 214 Business Environment and Country Risk 215 11.What to Make of "Make in India"? 218-231 The Indian Growth Model 219 Geography, Policies and Hubs 220 The Employment, Education, and Land Nexus 222 Problems of Employment 223 Whither Education and Labour Laws? 225 Whither Agriculture? 226 Development Plans 228 Conclusion 230 12. Make in India: Achieving Self-Reliance in Defence Production 232-254 Reasons to Invest 232 Statistics 233 Growth Drivers 233 FDI Policy 234 Sector Policy 234 Financial Support 234 The unfinished agenda 236 Government initiatives and achievements 238 Industry feedback 246 Way forward 251 Index 255 .