The decision to buy 36 Rafale fighters exposes the complexinstitutional mechanisms in defence procurement.

In an interview with CNBC-TV18’s Latha Venkatesh and Sonia Shenoy, Deba Mohanty, Vice President, Society for the Study of Peace and Conflict said that he was hopeful of more reforms beyond the move to hike FDI. Below is the edited transcript of the interview on CNBC-TV18.

Latha Venkatesh: There was a lot of publicity for the move to allow 49 percent FDI for manufacturing defence equipment. Have you noticed any other reform measures and procedures that the new government has initiated?

Indian Prime Minister Narendra Modi’s appeal to the global manufacturers through his independence day speech on 15 August, 2014 – come, manufacture here, sell us and others (anywhere) – has generated varying degrees of attention in India and elsewhere. Whether such an avowal is a byproduct of a crafted political vision or a mere popular adventurism is a matter of debate.

At a time when irregularities in defence procurement deals have hit headlines in the media and thereby raised issues of probity and transparency in recent times, one can not help but wonder as to how the political parties and their leaders look at larger issues of probity in and concepts of national defence and security.

On 16 July, 2013 the UPA government decided in principle to open up as many as 13 sectors for foreign direct investment - ranging from 49 percent to 100 percent - with different caveats. Some needed approval through automatic routes, some approval through Foreign Investment Promotion Board (FIPB) and others with distinct riders.

The dawn of twenty-first century coincided with an unusual phenomena in the arena of international relations and that is the emergence of China and India as global powers. The steadily rising rate of economic growth in India has recently been around 8 percent per year and there is much speculation about whether and when India may catch up with and may even surpass China’s over 10 percent growth rate. India and China understand the concept of co-existence and the growth very well. This engagement has elements of both rivalry and cooperation.

The new Defence Procurement Procedure (DPP) was officially released by the defence minister on January 13, 2011. This bulky document—all of 281 pages, revised eight times in the last nine years—comes into effect from January 1, 2011.

Yet again, India’s defence budget has escaped larger national attention this year. The defence component of the national budget accounts for 14% of central government expenditure but gets less than 5% of media space, the bulk of which goes towards data released by the government with sporadic analyses by experts. Virtually no discussion on the issue takes place in Parliament either. A call for increased resources for national defence usually only goes out when defence spending by Pakistan and China makes headlines.

Three names have been doing the rounds in India these days: Maulana Ilyas Kashmiri, David Coleman Headley (a.k.a Dauod Geelani) and Tahawur Hussein Rana; one hard core veteran Jehadi and two motivated ‘would be’ terrorists. They are in the news for plotting major assaults in India. Among them, Ilyas Kashmiri who was rumored to be dead early this year, in fact survived three drone attacks in Pakistan’s Waziristan region, belongs to the Al Qaeda- Harkat-Ul- Jihad- Al-Islami (HuJI) lineage and heads Al Qaeda’s deadly 311 brigade. He still carries a head money of US $ 600,000 dollars.

After the 17th Chinese Communist Party Congress National Meeting 2007, China started focusing on South Asia, specifically India. Both have been favorably disposed towards multilateralism, with India joining the Shanghai Cooperation Organization as an observer, while China joining SAARC summit in April 2008, also as an observer. Besides, people to people diplomacy expanded with mutual tourist visits.