AS soon as the Modi-led BJP government assumed power at the Centre in 2014, one of its early and systematic moves was to initiate the privatisation of the defence sector.A significant starting point was the imposition of excise duty on products manufactured by Ordnance Factories and Defence Production State Units (DPSUs). Historically, these units were exempt from such duties, as both the producer and consumer in these transactions was the Ministry of Defence (MoD), and the payments did not result in any actual revenue generation for the government.

THE Modi government is making India flow into the American military fold at a break-neck speed. In 2016, India became a “Major Defense Partner” of the United States (US). Buying military equipment from the US is the high point of Modi’s foreign policy. He is aiming to make India a full-fledged US military ally and privatise national defence before the end of his term as prime minister.  Today, US is India’s biggest arms supplier.