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5) Trace the evolution of FDI in defence sector of India and also analyse the Implications of FDI in Defence on Self-Reliance and Indigenisation.(250 words)

Topic: Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth.

5) Trace the evolution of FDI in defence sector of India and also analyse the Implications of FDI in Defence on Self-Reliance and Indigenisation.(250 words)

Financialexpress

Why this question:

The question is based on the policy perspective with respect to the investments in the defense sector and in what way FDI brings in self- reliance and Indigenization.

Key demand of the question:

The answer must discuss the importance of FDI in defense, trace its evolution 

And analyse in detail its implications.

Directive:

AnalyzeWhen asked to analyse, you have to examine methodically the structure or nature of the topic by separating it into component parts and present them as a whole in a summary. 

Structure of the answer:

Introduction: 

Discuss first the importance of  investments in defense sector in general.

Body:

The body of the answer to have the following aspects covered in detail : 

Explain the evolution of FDI in Defence Sector.

Then discuss the associated advantages (Transparency, Quality Products, Reduction of Reserves, Positive Performance Pressure on Public Sector Enterprises, Employment Opportunities etc.) and disadvantages (Security Concerns, Competition for Domestic Private Industry, Overbearing Presence of Foreign Companies etc.)

Then focus on to explaining the Implications of FDI in Defense on Self-Reliance and Indigenization. 

Conclusion:

Conclude with way forward.