Editor’s Note

The changing nature of warfare, rising conflicts and the never-ending great-power competition has given rise to complex geometries in global geopolitical positioning. The world's future is filled with eternal uncertainty. The advances in technology such as quantum computing. artificial intelligence and digital surveillance have transformed the military worldwide. As a driving force, technology has embedded itself in the power showbiz and has initiated an unprecedented competition between global powers including the emerging middle power. Acquiring innovative power, capacity to invent and adapting fast to new technologies is now a key determinant for all involved in the ongoing power game in the emerging new world order.

Raksha Anirveda’s latest web feature attempts to evaluate and understand the impact of technology in reshaping India's power aspiration through its Indian Armed Forces’ modernisation programme. The featured articles have been diligently curated. These articles analyse Indian Armed Forces’ adoption of innovation and technology. procurement of critical technology to become Aatmanirbhar, adaptability to disruptive and emerging technologies, and its digitisation efforts to emerge as a strong future-ready force. Raksha Anirveda invites esteemed readers - the driving force behind its evolving benchmark to indulge, explore and evaluate the feature presentation. Happy Reading!

Girl in a jacket

MoD Inks Defence Offset Contracts Valued at US$5.67 Billion

Defence Industry

New Delhi: The Ministry of Defence (MoD) has signed defence offset contracts with a cumulative value of US$ 5.67 billion in the last three years, Lok Sabha was told on November 20.

In a written reply, Minister of State for Defence Shripad Naik said a study on impact of offsets on Defence Industrial Base was conducted by Department of Defence Production through Institute for Defence Studies and Analyses (IDSA). According to the study conducted, till March 2019, MoD has signed 52 offset contracts valued at US$11.79 billion to be discharged through Indian Offset Partners.

In May 2001 the defence industry sector, which was hitherto reserved for the public sector, was opened up to 100 per cent for Indian private sector participation with Foreign Direct Investment (FDI) up to 26 per cent both subject to licensing. Further, Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry allowed FDI under automatic route up to 49 per cent and above 49 per cent through government route wherever it is likely to result in access to modern technology or for other reasons to be recorded.

Since the opening of private sector participation in defence production in 2001, 452 Industrial Licenses (ILs) have been issued till October 2019 for manufacture of a wide range of defence items, out of which a total of 109 licenses have been issued in the last three financial years.

He said so far FDI amounting to Rs 1,812 crores has been reported by the companies in the defence and aerospace sector since April 2014.

Separate procedure for ‘Make-II’ category has been notified under Defence Procurement Procedure (DPP) to encourage indigenous development and manufacture of defence equipment. Till date, 44 proposals for development by industry have been given ‘In-principle’ approval under Make-II.