Introduction
Opening the Defence Sector for participation of the domestic private industry, in May 2001 was a milestone event, an unprecedented step taken by the then Atal Bihari Vajpayee government to unshackle the monopoly enjoyed by the public sector enterprises hitherto with respect to defence R&D and productionisation. Post-independence, the Defence Sector, primarily ‘Arms and Ammunition’, was reserved solely for the Public Sector Enterprises, vide Industrial Policy Resolution of 1956, Schedule A. The Indian Military-Industrial Complex saw substantial expansion over the decades, becoming one of the top 15 in the world. However, the private industry was not permitted to participate in the Defence Sector until 2001. Besides, the procurement of the arms, ammunition and defence equipment, in India was known for the legendary bureaucratic maze, highly complex & cumbersome acquisition processes & procedures, and lingering doubts over the capacity & capability of the private industry to effectively fulfil the demands of military platforms and munitions that carry stringent qualitative requirements.
