ABSTRACT
The defence industrial base (DIB) in the country, although critical, remains narrowly limited to the licence raj legacy of defence public sector units (DPSU) and the ordnance factories. India is the largest importer of defence equipment in the world, with nearly 40 per cent of its total defence budget spent on capital acquisitions. With ‘Make in India’ as a flagship program, the manufacturing sector has received the kind of attention that it deserves both as a catalyst for investments and to generate employment in the country. Renewed thrust on manufacturing would generate employment, spin-off benefits into other critical sectors, bridge the current account deficit (CAD) by reducing imports of capital goods and most importantly, favourably impact India’s DIB for capability development – an essential instrument for guaranteeing national security in a region where crisis defines the new normal.
