Defence Minister Nirmala Sitharaman said her priority will be to address preparedness of the defence forces and ensuring that they are armed with the “best of equipment” available.
But, Sitharaman was also cautious, saying that she will consult the Prime Minister and the Cabinet on all the long pending issues related to defence procurement and reforms.
Sitharaman succeeded Finance Minister Arun Jaitley, who had been holding the additional charge of Defence Ministry.
Assuming office on Thursday, she said, “My priority will definitely be the armed forces’ preparedness. It is important that the Indian armed forces receive the attention in terms of giving them every endowment and equipment necessary for them to perform their duty with the best of equipment available.”
She also wants to ensure that defence production drives the government’s flagship ‘Make in India’ campaign and that India’s defence capabilities get strengthened.
“We all know India is a big defence procurer, but we need to ensure that our manufacturing grows and see that Make in India takes over,” she said.
Her remarks come at a time when the government is staring at deals worth over ₹50,000 crore that are in the pipeline, which includes procurement of battle tanks, fighter jets, frigates, submarines and several other weapons that the defence forces are in urgent need of as they increasingly face challenges from its neighbours such as Pakistan and China.
“It’s a sign of a direction to Indian industry to create world-class equipment. I hope the deals will get pushed and the pipeline gets cleared faster. Some of the demands of the armed forces need to be met urgently like armoured vehicles, handheld guns, personal weapons, ships, submarines, choppers and other ammunitions,” said Rahul Gangal, Partner at defence consultancy firm Roland Berger.
In May, the government rolled out a Strategic Partnership Policy to speed up defence procurement. The policy covers procurement of submarines, warships, armoured vehicles and fighter jets.
The government is also expected to soon announce a ₹60,000-crore P75 (I) submarine programme under which it plans to procure six submarines.
Last year, the Defence Ministry has also issued RFI (Request for Information) to build single-engine fighter jets as the Indian Air Force faces increasing challenges with a depleting fleet.
Another long-pending project which the government hopes to expedite is the ₹50,000-crore Future Infantry Combat Vehicle (FICV).
“Most of the problems in defence procurement lie in adequate decision-making. But everything depends on the money available because anything over ₹3,000 crore goes to the Cabinet Committee on Security (CCS),” said Amit Cowshish, Distinguished Fellow at Institute for Defence Studies and Analyses (IDSA).