{"id":54955,"date":"2021-01-11T09:08:00","date_gmt":"2021-01-11T09:08:00","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2021\/01\/11\/india-analyst-can-india-implement-reforms-quick-enough-to-rejuvenate-its-defense-industry\/"},"modified":"2026-08-08T00:06:59","modified_gmt":"2026-08-08T00:06:59","slug":"india-analyst-can-india-implement-reforms-quick-enough-to-rejuvenate-its-defense-industry","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/outlook\/2021\/01\/11\/india-analyst-can-india-implement-reforms-quick-enough-to-rejuvenate-its-defense-industry\/","title":{"rendered":"India analyst: Can India implement reforms quick enough to rejuvenate its defense industry?"},"content":{"rendered":"\n

Spurred as much by the economic considerations as the embarrassment of continued dependence on imports, the Indian government has taken several steps this year to galvanize defense production in the country<\/a>.<\/p>\n\n\n\n

In what many consider to be a long-overdue reform, Finance Minister Nirmala Sitharaman announced May 16 the corporatization of the Ordnance Factory Board, or OFB, that manages 41-odd ordnance factories located across the country. This change is expected to double OFB\u2019s turnover to approximately $4 billion by 2025 and, in the process, address concerns about the quality of its products.<\/p>\n\n\n\n

The decision is in limbo because of stiff opposition from the employees\u2019 federations fearing layoffs and other deprivations, which was to be expected. In a belated move, an Empowered Group of Ministers, headed by Defence Minister Rajnath Singh, was constituted in September to address their concerns. It is unknown if any headway has been made by the group.<\/p>\n\n\n\n

Considering the stringent criticism heaped on the existing public sector corporations, nine of which are administered by the Ministry of Defence, corporatization alone may not yield the desired results. The newly created corporation will need to invest in research and development, and upgrading of infrastructure, to be able to manufacture better quality products required by the armed forces.<\/p>\n\n\n\n

Meanwhile, in an unusual move that can be described as \u201cforcible indigenization,\u201d in August the MoD released a list 101 items whose import was scheduled to be banned<\/a> over the next five years beginning in December. It included not just simple parts but also \u201chigh-technology weapon systems\u201d such as transport aircraft, combat helicopters, rifles, corvettes, sonar systems, armored fighting vehicles and submarines.<\/p>\n\n\n\t