Defence Current Affairs - 2019
Defence Current Affairs of 2018-19 related to India’s Defence, Indian Armed Forces, Defence Production, Defence Acquisition and related matters for SSC, States Civils, UPSC and Other Competitive Examinations.
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The recently released rankings by Stockholm International Peace Research Institute (SIPRI) have placed four Indian Public Sector Undertakings among world’s top 100 arms producers. These companies are as follows:
- Indian Ordnance Factories (37th Rank)
- Hindustan Aeronautics (38th Rank)
- Bharat Electronics (64th Rank)
- Bharat Dynamics (94th rank)
This was for the first time that four Indian companies have ranked in top 100 arms producers companies of world. These four companies have sold arms worth USD 7.52 Billion in 2017.
Established in 1966, the Stockholm International Peace Research Institute (SIPRI) is a Swedish think tank dedicated to research into conflict, armaments, arms control and disarmament. SIPRI provides data, analysis and recommendations, based on open sources, to policymakers, researchers, media and the interested public.
India’s share in Global Arms Sale
India’s current share in total global arms sales stands at less than 2%. This indicates that India has been a weak player in international markets. Successive government have tried to turn India into a global defence manufacturing hub and take multiple policy steps to involve private sector in defense production. However, most of such measures have been on papers only till now.
World’s top arms producers
The global arms market is dominated by US companies which have a whopping 57% of the market share, followed by Russia (9.5%), United Kingdom (9%) and France (5.3%). As of 2017, Lockheed Martin is world’s largest arms with arms sales of $ 44.9 billion. Boeing is the second largest arms producer company in the world.
Supreme Court has given clean chit to Modi government for purchase of 36 Rafale fighter Jets. The three Judge bench headed by Ranjan Gogoi, find nothing wrong on the purchase of 36 fighter jet instead of 126 from France. The court gave clean chit on three aspects – Purchasing of 36 Rafale jets instead of 126. Pricing of Rafale jets and Selection of Indian offset partners.
The bench consists of Ranjan Gogoi as chairman and other two members S K Kaul and K M Joseph, gave clean chit on issue of procurement of Rafale jets from France. The litigation had questioned the deal on the ground of pricing mechanism, commercial favoritism and procurement of less number of fighter jets. The petition was first filed by Advocate M L Sharma. The petitioners demanded CBI to register a FIR for the said irregularities in deal. The apex court rule has two main points – (1) It finds no evidence of commercial favoritism (2) It is not the job of court to deal with comparative pricing mechanism.
Dassault Rafale won the MMRCA competition in January 2012 to supply 126 Jet aircraft with additional 63 aircraft to Indian Air Force. First 18 aircrafts were to be supplied by Dassault and remaining were to be manufactured by Hindustan Aeronautics Limited. Dassault refused to ensure the quality of aircraft produced by HAL. In 2014 the price of deal increased to $30 billion. This created the price issue on the deal and deal couldn’t be signed. Then after Modi government the deal was confirmed with the 36 multirole fighter aircraft of Rs. 58000 crores from France’s Dassault Aviation. The deal has been in controversy since its inception and supreme finally gave clean chit to government.