I think privatizing the defence sector overall is a good thing. Imagine having an indian version of boeing, texas instruments, Lockheed martin,etc. They compete for contracts which increases the likelihood of a better quality product within a specified time frame.
Companies like Lockheed Martin have a history that goes back to wars fought by the USA at which time the companies took the initiative to produce hardware that the government was unable to produce. Simply giving work to the private sector would not be the same as having a private sector of innovator-investors. The Indian private sector suffers from the same lack of vision as the public sector. Apart from a powerful pacifist mentality among Indians in general. http://www.fundinguniverse.com/company- ... n-history/
In 1905 a youthful Glenn Martin moved with his family to California. In the hills of Santa Ana, Martin built and flew his first experimental gliders. Not long afterwards Martin started a small airplane factory while working as a salesman for Ford and Maxwell cars. Martin applied his earnings from the auto sales, as well as money from barnstorming performances, to finance an airplane business. During this time he hired a man named Donald Douglas to help him develop new airplanes. Soon thereafter, Douglas and Martin collaborated to produce a small flight trainer called a Model TT which was sold to the U.S. Army and the Dutch government.http://www.lockheedmartin.com/us/100years.html
On the eve of World War I, Douglas was summoned to Washington to help the Army develop its aerial capabilities. Less than a year later, he became frustrated with the slow moving bureaucracy in Washington and returned to work for Martin, who had relocated to Cleveland. While there, Douglas directed the development of Martin's unnamed twin-engine bomber. Neither he nor Martin was willing to compromise or shorten the period of time needed for the development of their airplane. For that reason the "Martin" bomber, arrived too late to see action in World War I. When Martin moved to Baltimore in 1929, Douglas left the company to start his own aircraft company in California.
One hundred years ago, on August 16, 1912, Glenn L. Martin established the Glenn L. Martin Company in Los Angeles, California. He started the company after building his first plane in a rented church, where he took a leap of faith on his risky but innovative new aircraft design at the urging of none other than Orville Wright.
Four months later and four hundred miles away, on December 19, 1912, Allan and Malcolm Lockheed founded the Alco Hydro-Aeroplane Company, later renamed the Lockheed Aircraft Company. Talented mechanics, they set up shop out of a garage, constructing seaplanes that would shatter speed and distance records for overwater flights.
A church and a garage. These were humble beginnings. But these were also men of unrelenting vision and unwavering purpose. The gift that Martin and the Lockheed brothers shared was a unique ability to look past the obstacles of today to the promise of a brighter tomorrow. And they knew – as we’ve known for 100 years – that innovation, performance and purpose were the keys to accelerating that tomorrow.
Which private Indian industrial house has been innovative like this?