Enhancing Private Sector Participation in India's Defense Production

摘要

With the liberalization of the Indian defense industry in 2001, private companies have shown a keen interest in the production of defense items. Although a firm picture of its capability is still emerging, there is sufficient indication that the private sector is really interested in this area. The volume and nature of LOIs/Ils obtained by the private sector, various partnerships forged with international vendors, and the acquisition of foreign defense companies are some of the indications of its deeper interest in the defense industry. Considering India's large and growing defense budget and critical shortfalls of state-owned enterprises' production capability, private companies can play a major role, with some scope available for formation of evenTier-I companies.