We need to draw lessons from the development of defence industrial capability in developed nations for indicators, signs, growth pattern, to plan our industry development. The three key factors that led to growth of defence industry in developed countries were “Relaxation of State Controls”, “Increased Privatization” and “Competition”.
A vibrant Defence Industrial Base must necessarily include the private industry, large, medium and small scale. This would enable utilization as well as consolidation of the national manufacturing base in areas such as shipbuilding, engineering & metallurgy, automotive, electronics, avionics, telecommunication etc. Considering the available synergies between civil and defence technology applications, and the existing capability of Indian private industry, fostering a constructive, long term partnership is considered not just sound economic option but a strategic imperative to minimise dependence on foreign vendors. India has the advantage of its own large defence domestic market and it is a known fact that larger and sustained production volume of any system leads to optimisation of cost as well as improved production efficiency.