Make-in-India in Defence Electronics, A Reality Check

Abstract

Purpose: This paper has investigated the impediments of progress of ‘Make In India (MII)’ programs through literature review, market survey and statistically measured the trueness of findings.

Design/Methodology: Three major Make-In-India projects, namely Futuristic Infantry Combat Vehicle (FICV), Tactical Communication System (TCS), Battlefield Management System (BMS) have been taken as case study. Literature survey on the progress of major MII programs, were classified and categorised under several themes. The factors responsible for impediments in progress were identified. Hypothesis were formulated around these salient factors so arrived, and then administered to a test population of relevant MSMEs in defence electronics. The responses received on Likert scale were analysed using statistical techniques (z-test method). The hypotheses were tested for their acceptance/ rejection and inference drawn.

Research Method:

Business Problem: Make in India in Defence Electronics has not reached the expected success level.

Research Problem: Study the published literature on Make in India in Defence Electronics to identify and analyse the impeding factors using statistical methods. 

Research Objective:   Identify and analyse the factors from published literature affecting Make in India in Defence Electronics to reach its desired success level and substantiate the findings through primary research methods.

Research Questions: A set of research questions were formulated and served to 51 persons from the target MSME industry segment to respond in a Likert Scale. The uncorrelated stratified random sample responses were quantitatively analysed for their acceptance/ rejection.

Statistical Method:   Z-test was applied to test our hypothesis-based test statistic with an acceptance threshold or confidence level of 95% (1-α) i.e. significance level (α) of 5%.

Findings:  The reasons for unsatisfactory progress of Make in India initiative, is assessed to be:

(a)        Complex and tardy bureaucratic procedures

(b)        Lack of funds/ budget 

(c)        Bureaucracy and Red-Tapism.  

Originality/ Value:  There are over 200 publications on the subject. Most of them give isolated expert views and opinions. This study gathered views of a wide range of stake holders across policy makers, industry stalwarts, research agencies, government officials, investors etc., through a stratified random market survey and analysis to highlight some of the salient impediments to MII initiatives. The results are expected to be of interest to the global defence majors, the Indian lead participants, the members of the eco-system and enthusiast defence analysts.