CHAPTER VI

DEFENCE AND CIVILIAN PRODUCTION : THE LINKAGES

CHAP'IER VI

DEFENCE AND CIVILIAN PRODUCTION : THE LINKAGES

The establishment ef a defence preductien base is

closely intertwined with political econ.mic and strate~ic

imperatives of a cew1try. Politically it is vital te a truly

independent status of a developing cowntry, as a failure tG

secure relative self-sufficiency in this regard weuld lead te

perpetual dependence on big pewers for the supply of armaments

and expertise. Dependence in this matter eventually leads to

varieus strings that the anns su~pliers attach wi tb. their

exports. They try te ex~loit their superior bar~ining pewer

te gain military factii ties en the soil ef the recipient

countries under the pretext of defence pacts. Econamically,

an indigenous productien facility helps in the utilization of

domestic raw material and human resGUrces. Once started, it

is net restricted to production in the defence sector only,

but causes a spi~off effect in the civilian industries and

ether economic activities in general. If defence preparedness

is considered as a steady and leng term effort, carefully

evaluated and planned, it is strategically, politically and

econemically more viable than spasmodic efforts te meet

/

229 -

security needs as and when they arise. 1

The failure to realize the intricate relat1ensh1'

between the defence and civilian secters is ~nerally reap•~

sible for a cauntry•s inability tc adequately meet the defence

needs in time. India tee faced this problem during its danands

arising .ut ef conflicts in the 1960s. India's defence procu­

rements in the 19~s reveal that there was ne clear cut threat

,erceptien at that time which could necessitate the indigeneus

development ef defence ~reductien base en a leng term basis.

The preblem ef secur1 ty was viewed in a limited centext ef a

possible confrontatien with Pakistan, whereas the threat acress

the northern frontiers was not considered at all. With reeard

to naval defence, India was net in a pesitien to take

independent decisions. Britain was still maintaining its naval

presence in the Indian Ocean, and seu{#lt te make India a part

ef its Indian Ocean strategy. Due to a lack ef preper threat

perce,tien, coupled with pressures from Britain and its allies,

India's arms acquisition·: in the 1950s were almost tetally

influenced by the· supplier countries. An effert te assert

indeperxlence in this reprd was resented by the traditienal

arms-su~pliers, resulting in political and ecGnemic pressure

1 Rajesh K. Agarwal, Defence Preductien and Develeinent (New Delhi, 1978), p. 41; J.E. Katz, !*Understand g Arms Production in Develeping Countries", in J. E. Katz, ed., Aims Production in Developing C•untries (Lexingten, 1984), pp. C6.,

231

' .

te restrict our behaviour. 'lhe American refusal te .-riWide

supersenic air crafts Starfi ejl ters and the Bekare steel plant

bear evidence te such pressure tactic in the early 1960s.

Hewever, a ctmpetitien amen~ suppliers enabled India to

diversify the sources of arms su~ply which, at a later date,

also facilitated the transfer ef tecbnelegy te start its ew.n

defence preductien, under licence fram the suppliers.

By laying the foundations ef defence preductien

wi~in the country itself, India teok a step tewards buildiDi

a viable defence. It ~plies that the country is •net held

to pelitieal, financial er military ransan to meet, What we

censider eur reas~mable needs'. 2 It weuld alse mean that given

the raw materials, capital investment and technelegical skill,

the ccuntry develeps the requisite industrial capacity te

manufacture most of its defence requirements. 'lhe defence

production capability in a developing ceuntry like India has

te take int• acc~nt the utilisation ~f the abundant natural

and human resources in order te lay a substantial infrastructure

which weuld facilitate civilian industries teo, and the general I

ecenemic and social develepment ef the ceuntry. In other

words, the linkages among various defence and civilian

acti v1 ties are the crux ef develoJ;ment which can tackle the

security threats within the economic censtraints that the

country faces.

2

/

B. D. Nagchaudhuri, Science and 'SocieM (New Delhi, 1977), ,. 226; R. Rama Rae, Self-~eiiance a Security (New Delhi, 1~4), ••• 1-20. .

232

• Ship-building Activities

A fairly advanced ship.. ruildin& act1v1 ty in the

-ancient a nd medieval India proves that India has had a leni

tradition in this field. The earliest evidence of shipping and

ship.. b.lildin~ activity is f&und in the archaeelogical remains

ef Moh~jo-daro and Harappa in the Indus Valley areund 3000

B. c. 3 In the medern period the famous Bembay Docks, started

by Jewji Nusserwanji Wadia, built not enly merchant vessels but

alae very high quality warships. In 16fB, Gerald Aungier wrete

heme te the East India Cempany that shiP-buildin~ was "mere

substantial {in India) than in England". 4 Admiral Cedrin&ten

used the battleship Asia as the fla~shi, at the historic -battle ef Navarine. After about bto centuries ef _existence,

Wadia' s finn ceased to maiUlfacture ships fer the navy. The

Bcmbay Decks could not kee~ pace witil the technolegioal develop..

menta when iron ships replaced wooden vessels. For more than

fifty years British-built shi~s sailed the Indian Ocean.

The British geverrment did not make an effert ta develep

an indigenous shiP-building c•pability in India because they

had their ewn.

Thougp the c~lonial powers did net censider the

establishment of shi~ wilding industry in the celenies, they

3 o. K. N.unbiar, OUr Seafaring in the Inctian Ocean {Bangalore, 1975)' pp. 14-15.

4 K.M. Panikkar, India and the Indian Ocean (Bambay, 1971), p. 95. '

233

could net pessibly avoid the maintenance and repair facilities

w1 thout which it wruld not be pessi ble te conduct their own

ship~ing activities in the area. The oldest such facility

dates back to 1774 when M~zagaen Dry Dock was built in Bembay.

And this is the si tuatien fran \'~here a newly independent

develepin~ ceuntry can take eff tewards establishing its ewn

ship censtructien faciiity. The Mazagaen Deck Ltd lMDL) was

started as British India Steam Navigation Company in 1934 fer

ship repairs. 5 As its maintenance functien increased, carefully

· pre!tared erders fer smaller crafts frem tile gevernment helped

to set up a medest shi~ruilding facility. A gradual develepment

ef the cempany inte manufacture of larger crafts, erdered

frem beth defence and civilian sect~rs as well as fereign

buyers, turned 1 t inte a truly medern ship.. building and repair

facility. 'lhe ciliilpany was acquired by the Indian Governnent

in 196o and was placed under the Depar1ment ef D~fence

Preductien, new a separate ministry. At the time of takeever

the main b.lsiness cf the cempany was ship repairs, b.lt si~ce

then modern facilities like ship-building berths and machine

sho~:ts have been added te make the shipyard capable ef b.tilding

warShips and merchant ships, as also fabrication and installatien

of offshore ,latfonns, general engineering works and warship

m oderni sa tien.

5 Aprwal, n. 1, p. 44.

234

In Ule field ef warship censtructitm, the Leander

class friiatea under British licence was a major ate~ towards

self-reliance in defence preduction. After cempleting six

frigates in this class, the MDL embarked upon the censtruction

ef mere advanced Godavari class frigates, which are of Indian 6 design in their entirety. The new frigates are An 1mprevement

en their predecessors in terms of sensors and electronic

equipments, weapons control system and machinery. '!he MDL has

alsG diversified inte the field of submarine construction as a

result ef an a~eenent with the West Gennan finn Hewaldt

Deutsche \Verft (HD\'l) \tilich provides fer the constructien of two

Type-209 subnarines in India under licence. '!he facilities .

fer the construction of submarines have been set up at the

North Yard Phase III, and the werk will start after two

subnarines arrive frcm Germany.

The Mazapon Dock's contribltion te civilian require­

ments has als~ been notewerthy in recent years. With the

extensive expleration of B&mbay Higp by the Oil and Natural

Gas Commission (ONGC), the requirements of effshore fixed

platfonns were souitlt te be met by their fabrication at Ule

MDL. In 1975, the ctanpany took over the adjeining area ot

Alcock Ashdewn, and created facilities there fer undertaking

the manufacture ef a large number ef pla tfenns. 1 'lhe MDL has

6 India, Ministry of Defence, Annual Report, 19§3-84 (New Delhi, 1934), p. ~2. · ·

7 S.P. Baranwal, Military Yearbeek, 1980-81 (New Delhi, 1930), ,. 110.

alae been censtruct1n~ various types e! tugs, bari9s, e!fshere

supply vessels and fast passenger launches etc.

'lb.e MDL is capable of carrying out deck and engine

repairs te ships •f any size that enter the Bembay harbour,

including underwater repair of vessels up te 45,000 tons. It

alse undertakes general engineering werk, including repairs te

machinery and equipment, everhauling ef steam, diesel and

petrol en~ines, mamtfac1l.lre of castings am Burshane tanks,

as well as doing radiograph quality welding etc. 8 The process

·ef indigenisation is given a very hi{41 t"»rierity at the MDL fer

which • in-house• research and development (R&D) is undertaken.

R&D has led te impert substitution in many products as well as

imprevementsin the performance of various existing canponents

and equipment. For instance, the censtructien of Leander

class frigates in India witnessed increasing indigeneus centent,

fran a mere 18 ~er cent in the first frigate to abeut 60 per cent

in the sixth one. 9 For laying the pipelines underwater, f•r

the ONGC, the Mangalore plant of the MDL has embarked upen

pipe- coating \'lhich has significant centril:utien to import

subst1tutien in the future. Due to sustained efforts at R&D,

indi~enisatien and the improved quality of equipment, the MDL

has been able to secure substantial expert orders, in spite ef

world wide recession in shiP-building industry and high cest

8 India, Ministry ef Defence, Annua~ Report, 1980-81 (New Delhi, 1981), p. 48.

9 Ibid., p. 49.

236

•f censtructien. It has supplied tuiS, launches, carge-vessels,

tankers and barges etc. to custemers in Mozambique, Aden, Iran

etc. 10 The MDL became an eligible expert house in 1975, and

agreements were made with manufacturers of engineering goods,

connected with ship-building ancillaries t• expert their

ge~ds throu~ the canpany.

'lbe second major ship..l:uilding CQ'Ilpany, 1:he Garden

Reach Shi(»builders and Engineers Ltd ( GRSEL) was established

in 1884 as a ~artnership firm, and was converted in 1934 into

a limited liability cempany under the name ef Garden Reach

Werksh•~· The entire sharehelding was taken ever by the Indian

Gevernment in April 196o, and it was placed under the Depart­

ment of Defence Production. 11 The campany•s activities were

diversified from ship repairs te ship-building and general

engineering, and thus the name was changed to GRSEL in 1977.

Since the takeover, the can1.9any has grown frcm a ship reapir

worksh•~ into a multi-unit diversified industrial undertaking

having nine units, seven at Calcutta and one each at Ranchi

and Na{;Pur.

In the field ef shiP-building and engineering acti­

vities, the GRSEL caters to both defence and civil needs. 12

10 Ibid. , p. 48; India, n. 6, P• 63.

1 1 India, n. 6, p. 65.

12 Ibid., pp. 65-66.

237

The cempany censtructs seaward defence boats, ecean going tugs,

hydro~aphic survey vessels and landing ship tanks f•r the

Indian Navy. Apart fran the Navy, the GRSEL has supplied

inshore patrol vessels to the Coast Guard, offshore supply-cum­

standby vessels to the ONGC, fishery research vessels te

Central Marine Fisheries Research Institute (CMFRI) Cechin,

and Bollard pull tug to the Tuticorin ~ort. The engineering

preducts fer the civilian sector include pumps fer agricultural

needs, cranes and road rollers, as well as sophisticated equiP­

ment fer vari~us steel plants and power stations. Tne cempany

is also engaged in the fabrication of pertable steel bridges,

~ carriages and recovery vessels for the Army, and manufacture . of · ~esel engines for marine propulsion and power generation.

It also builds bulk carriers for merchant ships up to 26,000

dead weigPt tonnage (DWT), barges, firefleats, dredgers etc.,

which are used by shipping industries, ports and research

vessels.

In the late seventies, GRSEL incurred losses due

te labour trouble in c~lcutta and under-utilisation ef capacity

in some of its plants. A reappraisal was made by the Department

ef Defence Productien and the csrn~any, including a market 13 survey for its products. As ~ result of this exercise, the

earnings of GRSEL shewed improvement by way ef experts of its

engineering products and repairs to foreign vessels. The

13 Baranwal, n. 7, p. 45; India, n. 8, p. 57.

238

•reducts ef GRSEL are bein& prci:l'"essively indi&enised, and

varieus products like pumps, engines, cempenents and aute

change-ever switches are either developed indiieneusly er are

under research. Under the diversification scheme, the company

is plannini to ccnvert ene cf its dry doc~, lying in disuse,

inte a wet basin. Sane ether schenes involve the replacement

of eutdated machinery, renovatien ef slipways am auillentation

of out-fitting facilities for naval vessels. 14 Due te its

diverse activities and product range, the company gives

Substantial ~atronaie to small scale industries, and purchases

equi[Eents from than worth· crores ef rupees. It has alse

been recognised as an export house, and supplies @tmlps, read ~

rollers and fabricated steel equipments to United Arab

Emirates, Bangladesh, Ceylon, Libya etc.

GGa Shipyard Limited was established by the Portuauese

at Vasco in 1957, v1ith a view te providing repair facilities

fer inland barges carrying ores from mines te the ships in

Murmuia• harbour. After the liberation ef Gea the yard was

leased to the MDL, but started .functionini wi til a separate

manaienent fran 1967. At present it is a subsidiary of the

MDL, and has grown fran a barge re~air yard te an efficient

ship-building orianisatien catering to the Navy, the Ministry

of A~iculture and private users. 15 The c~pany•s activities

1 4 India, n. 6, p. 67.

15 Ibid., p. 69.

239

are ieared towards censtruction of small ~rsnips fer the

Navy, like seaward defence boats (SDBs), landing craft utilities

(LCUs) and survey crafts. It has also supplied exploratory

fishin~ vessels tc the Ministry of Agriculture under the

Norweiian aid programme, Flat-tep Pentoons to tile MDL fer

export te Aden, launches, jack-up platforms and offshore

platform suppQrt-cum-supply vessels.

Apart fr001 ship.. building, the ca:npany undertakes

repair work fer ships, barges and small crafts in its

slipways. A project for the creation of facilities for

ship repair and ship construction is in progress, and another

project has been approved for widening and extending the

exi~ting fi tting-eut jetty. 'lheru~ GSL does net have an

ancillary unit as yet, it is previdin~ assistance to small 16 sector units in Gca for the supply of raw material etc.

The value of purchases fran the small units is en the increase

due te diverse activities of the company and its various

expansion ~rogrammes.

Ship- b.ILLd ing in the civilian sector is also an

1m~ortant component of the maritime capability ef a country.

We have already stated that the three defence public sector

undertakings MDL, GRSEL and GSL prOduce vessels for the

civilian needs too and undertake repair work for ships of

all sizes. The nexus between defence and civilian ship..

16 Ibid., p. 70.'

24<>

buildini industries can be understeed only when we rea~ise that

a nation's peacetime cemmerce and mercantile marines are

inextricably cGnnected with its naval strength. The reserve

ef skills required for the expansion of the N•vy depends

mostly on peacettme activity en tile sea, on building yards,

on the familiarity with the sealanes and ,erts, and en people . 17

engaged in overseas trade. The Indian ex~ertise in the

area of ship-building was net encouraaed by the British

Government, and the latter allowed to develop in India only

some ship repair yards. After independence, the Indian

Governnent realised that unless India beccmes a ship-build in&

nation a~in, she had no future on the sea. With India• s

ever increasing coastal and overseas trade, the ship.building

industry alse attracted the attention of the decision makers.

Towards the end of the British rule, efferts were made in the

direction ef ship- buildini. '!he first steel merchant ship

built in an Indian dockyard sailed the sea in 1947. A separate

ministry was fermed which toek up the camplete responsibility

of -the entire ship.. building and ship repair industry.

'!he Hindustan Shipyard Ltd. was the first civilian

shipyard, established in 1946, to cater te the needs of India's

budding shipping industry. It was taken over by the Governnent

of India in order te co-erdinate the ship construction and

re~air werk, and to arran~e for loans on a moderate rate of

17 Panikkar, n. 4; p. 95.

241

interest te meet the ever grewing demands from shippini companies

in India am abroad. Till the end of 1983, this ctmpany had

·censtructed and delivered 81 vessels ef varieus types and

sizes a~regatini 8.61 lakh DWT/5.91 lakh GRT. 18 'lhe present

annual capacity of the shipyard is three ships, but this dees

net enable the industry t• keep pace with the growin& needs

ef India's overseas trade. In erder to co~e with ihe demands,

a standard desi~ was intreduced whidl would reduce the time

.and cost ef constructien. Earlier ship-blilding was based on

the design of protet~e vessels which cwld meet only one

set of conditions/requirements, and did net have flexibility

of desi~. 'lbe new systen of a standard design envisaged

the construction of a family ef vessels coverini different

types and capacities to meet various trade requirements.

The individual requirements of owners could be catered to by

changing the ~etails marginally, and making use ef the ranainini

bulk of drawings already established for the standard ship.

The aft part of the ship ccmprising the en&ine roan and

accctnmedation block acceunts for nearly 65 per cent of cest

and labour centent of any vessel. 19 The basic bull desi~

•f the Pioneer class was optimised by Polish colLaborators

18

19

India, Ministry of Ship~ini and Transpert, Annual Repert, 1~3-84 (New Delhi, 1984), p. 15.

"Fair Weather for Shipyard", The.Hindu, Survey ef Indian Industr~ (Madras, 1980), ~. 185.

242

under an Ind~Polisb. a~eement. '!his medern cencept enables

the shipyard te build in a dock, rather than a berth, frtm keel

te delivery se that the constructien ef twe er three ships

could pregress simultaneously. This system of conatructien

raises the capacity of the shipyard t~ six er seven vessels

per year. Under the development prc~amme stage II, a project

sanctioned in May 1981 previded fer a building deck for the

abovementiened purpose. Fer ship repairs, the HSL has a dry

dock in operation since 1971. Under the modernization

programme, the West Basin has alse been partially cemmissiened

for the repair of ships of various types and sizes. 20

Al!lart from catering to the demands of shipping

companies, the HSL receives orders fran the ONGC for various

ty['es ef vessels and ether equipments. It has constructed

31 ~heuses fer the ONGC. The shipyard has orders fer one

drillship (4 OPSSUS), a letter of intent fer twe well platforms,

and has sul:mi tted quot.itions for the construction ef simulat1en.

vessels, semi-submersibles etc. 21 VariGUs companies like the

Shipping Cor~eratien ef India (SCI), Essar Bulk Carriers,

Mo~ Lines, Dem,e Steamships, Tolani Shipping Cempany etc.

are regplar custcmers cf the HSL for bulk carriers. The

type and range of demands necessitates a further expansien

21

India, Ministry of Information and Broadcastin&1 A Reference Annual, 123,2 (New Delhi·, 1SB3), p. 38_,.-India, n. 18, p. 17.·

243

and medernisatien of the shipyard, s~ that it is able to meet

orders f~r at least a dozen vessels per annum.

As the demands for ships Were increasini every year

and the HSL was nGt being able to meet them, it was decided

in the early seventies to build another shipyard. 'lhe Cochin

Shipyard project was sanctioned in 1971 which weuld have a

dock te build ships up to 85,000 DWT, and a repair dock to

accanmodate ships of sizes up te one lakh DWT. 22 For ship..

building there was technical c0llaboration with the Japanese

firm M/ s Mi tsubishi Heavy Industries. 'Ihe Japanese !inn has

completed its assignment, and suggestions put forward by it

for improvement af the shipyard are being implemented. Even

before the construction of the shipyard was over, production

had started. The first two ships, Rani Padmini fer SCI and

Ratnadeep for Ratnakar Ship~ing Co., were delivered in 1981

and 1982 respectively. There are orders for three more 75,000

DWT Pan~ ax-type bulk carriers from the SCI, and their pro-

. 23 1 f dunction is in progress. There are a so orders er new

generation bulk carriers of 67,000 DWT for which a Nerweiian

tirm M/s. SRS is providing cconsultancy. Apart !rem ships,

the CSL has delivered a harbeur tug to the Cechin Port Trust

fer handlin& ships in and out of the repair dock.

A repair dock preject at the CSL was completed

in collaboration with M/s. Ishikawajim Harima Heavy Industries

22 India, n. 20, p. 383.

23 India, n. 18, p. 19.

. .

244

ef Japan. But dry dockin& and repair •f Ships has not been

able to reach annual targets for the last few years. 24 How­

ever with the massive capacity of the dock, it is he~ed that

· the fereign exchan~e compenent f~r repairs of Indian ships in

foreign ~erts can be reduced in course of time.

The performance of the twe commercial shipyards,

however, has not been satisfactory fer the last few years.

It is generally understood that there is built-in loss element

in ship- building industry, i.e. b.igh cost of building the

first ship, and delay in completion of the preject. But even

the government s~urces admit that leases are due t• lew

productivity of the \'JOrk force, labcur unrest, power cuts,

default by sub-cGntractors and delay in receipt of materials

etc. 25 Being an assembly industry, more than half of the cost

of ship.. building is c~nsti tuted by bough t-eut canponents like

steel plates, rel..Led sections, forging and castini., machinery,

stores and consumables. Thus the role ef sub- centracters and

ancillary industries becemes a challenging one in order te

meet the cCIJlmon needs of both merchant and naval ships. Since

the ancillaries are small scale units they are not able te

meet their contractual obligations due to the lack ef preper

technical guidance, detailed specifications, and a~preved

24 Ibid., p. 18~

25 Ibid.

245

grades ef tested and identifiable materia1. 26 This causes

serious delays and disruption af delivery schedules, due te whiCh

both HSL and CSL are running at heavy loss and h;J.ve not been

able te repay long term loans provided by the Shipping

Develepment Fund Committee (SDFC). However, well coordinated

plans, modern techniques, standard designs and diversificatien

@rojects are expected to remove the financial constraints, se

that the shipyards are able to meet their constructien and

repair targets.

The ship.. building industry has demands in various

fields, and_that is why it cannot remain self-sufficient. In

modern strategy there is ne distinction between air, sea er

land forces as they complement each other in military eperations~

The devel0pment ef equipment and weapons required by them

invelve various common· technelegies, like aeronautics, elec­

tronics, metalluriY etc. 27 This leads te @roductien links

among all defence industries, and they complement each ether

in production.

A lar~e number of ordnance facteries were established

in an effort to meet the growing needs ef defence forces and

te achieve a ~reater measure of self-reliance. The oldest

ordnance factory dates back to 1801, and new there are about

36 units all over the country under the control of the Department

l 26 H.K. Taneja, "Technology Gaps for·Ship Ancillaries",

The Hindu, n. 19, pp. 187-9.

27 Na&chaudhuri, n. 2, p. 229.

246

of Defence Production. They produce a variety c! equipments,

stores and clothings for the three services, ran&ing from small

arms to fire control equipments to binoculars. 1he productien

mix ef the ~rdnance factories cover several items processed

throu~ diverse technologies such as metallurgy, aerodynamics,

ballistics, under water and optical systems, and electrical,

mechanical and chemical engineerin". 28 The St':are peacetime

capacity in these !acteries is used for the manufacture ef

civiiian items. It is se because increase in work shifts in

wartime is not possible, ner is it easy tG produce skilled

man~ewer in short time. This decision was prov0ked partially

by delays in civilian units in providing advanced basic

materials, canponents and semi-manufactured parta. 29 Fer

instance the defence facility at Bhandara manufactures

c9mmercial explosives fQr use in gassy coal mines by Coal India

Ltd., and plastic explosive-based RDX for eil-well shooting,

required by the ONGC.

Apart fran undertaking the basic responsibility

fer the needs of the anned forces, the defence technology base

was alae utilised to cater to a diversified range ef applt­

catiens. This included the civilian requirements as well,

28

29

India, Ministry of Defence, Stery of Defence (New Delhi, 1972), p. 61; India, Ministry o£ Defence, Department of Defence Production, Estimates Cammittee, 1982-83, Ordnance Factories, Seventh Lek Sabha, 54th Report, 29 April 1983, pp. 27-30.

India, Lok Sabha Debates, vel. 2, pt 2, 25 March 1953, col. 2822.

247

such as merchant vessels, earthmeving equipments, railceaches,

electronic items and advanced materials etc. This led to an

increasing use of the cencept af management applied in the

defence public sector undertakings. There are nine such

undertakings in the public sector, of which we have already

discussed three, related to ship-building and ship-repairs.

Among them the Hindustan Aeronautics Ltd (HAL) is the largest

one; it m~nufactures fixed and rotary wing aircrafts, jet and

piston engines, avionics and access~ries. 30 It was established

in 1940 by \-'/alchand Hirachand as Hindustan Aircrafts Ltd., l:ut

was acquired by the gevernment in 1942 fer the Gverhaul and

repair of aircrafts. In a few years it started undertaking

the assembly of small trainer aircrafts. Since the early 1950s,

the government has develeped a policy ef linkin~ the fereign

purchase of aircrafts with their subsequent licensed

productiGn in India. Thus HAL started producing aircrafts

under licence fran Britain, France and the S•viet Union. At

the same time, engineers and technicians in the company

started making efforts towards indigeneus design and devel•P­

ment ef aircrafts and aerQengines. As a result India became

one of the leaders among third werld countries te develop its

ewn jet aircraft and gas turbine aeroengines. 31 Taday the

company is engaged in all aspects ef aeros~ace activities,

30 India, n. ,6, p. 51.

31 L~rne J. Kavic, India's Quest for Security (Berkeley, 1967), p. 136.

248

!rem ~r$duct conception, through design and development te

production ~nd overhaul ef aircrafts. It is alse participatini

in the space preap:-2Illiile, am has developed the 1 Vector Cardiegram'

equitxnent to be used by cosmonauts in future. 32

Bharat Electronics Ltd (BEL) grew eut ef the Indus­

trial Policy Resolution of 1948 to take up the responsibility

of wireless appar~tus industry, excluding radio receiving

sets. An Exploratory Cammittee under the Ministry&! Industry

and Supply recommended collaborations with varieus companies

in \vestern Europe, the United States and Japan fer 1he manu­

facture of communication equipments. 33 In 1954 the cQn~any

was reconstituted as a cor@oration under the Ministry of

Defence te design, develop and manufacture a variety ef

canmunications and radar equipment and systetll$. After the

implementation of its diversification plan, the BEL has

started cateri~g t& the needs of not only the defence

services but alse of broadcasting, meteorology, post and

telegraph, and civil aviation etc. 34 Bharat Earth Movers

~ (BF.ML) is India's pranier organisation in higl'l technology

earth moving eCJ.Ui@)ment. This canpany grew out ef tile

activities ef HAL's Rail ~each division, after the Sino-Indian

war. 35 Its Rail Coach Factory at Bangalore manufactures

32 Indi•, n. 6, p. 51.

33 Raju G. c. Thc:mas, The Defence of 'India (Delhi, 19'78), p. 160.

34 India, n. 6, pp. 54-55.

35 'lhanas, n. 33, p. 161.'

249

bread ,puge integral caaches, and meets mGre than 30 per cent

of the requirements of the Indian Railways. The Earth M•ving

Company at Kolar Gold Fields produces equipments like dozers,

dum~ers, loaders, scrapers, cranes etc. Several pr~ducts of

BEML are used in civilian projects like those of irri~ation,

power, mines, and steel and cement plants etc. 36 Praga TGols

~ (PTL) is a comprehensive machine tcol h.ouse which was

started as a public limited joint steck canpany in 1943 te

manufacture higp speed cutting teols and measuring instruments.

It was taken over by the Ministry of CQmmerce in 1959; and

then transferred to the Ministry of Defence in 1963 to meet

the tooling requirements of sister defence undertakings.

PTL's Machine Tool Division at Kavadiguda (Secunderabad) and

a Ferge and Foundry Divisien at Kukatpally {Hyderabad) produce

a wide range of tools like cutters, grinders, ce~ying lathes,

thread rolling machines, milling machines, drilling machines,

forgings and accessories. 37 Bharat Dynamics Ltd (BDL) was

estab~ished in 1968 at Hyderabad to prOduce sophisticated

missile systems. startin~ witn the production of missiles

for the army and airforce in 1971, it now produces radar

equipments, sonar medificatien kits and terpede electronics.

Under the new pre~arnme, BDL has plans to prOduce second

generation anti-tank missiles, and medium ran&e surface-t._air

. .

36 Saral Patra, "Rapid Indigenisation and Self-Reliance", Mainstream (New Delhi), vol. 16, no. 51, 19 August 1978, ,. 1o9.

37 India, n. 6, pp. 70-71.

250

and surface-to-surface missiles. 38 Mishra Dhatu Nigam (MIDHANI}

was established at Hyderabad in 1973 te meet the demands of

strategic metals and sophisticated alloys. Since 1983 the

integrated facilities ef NIDHANI have bec001e established source

of specicd metals and allays, lil{e titanium, tungsten, and

melybdenum, etc. One of the most significant achievements. of

MIDHANI in recent time has been the development ef m~~ing

steel required by the Indian space pregramme. 39

India' s defence production, vklich is partly licensed

manufacture and partly indigenous eff~rt, has two majer

objectives, i.e. the modernisation of arms and equipment and

rapid advance towards self-reliance. when the security

environment is beccming mere and more complex, in the neighbour­

hood, it is imperative that our anns and equipment should match

those ef eur likely adversaries. Another facter is soldier's

confidence in his \veapons and other equipment. It may not be a

very serious matter if a gun did nQt fire or a vehicle runs

into engine trouble on a civilian mission, but such trouble

during ccxnbat could destroy the mer ,le ~f the anned forces.

Thus the staying power of the military and the Lmmunity of a

country to pressure frem fereign arms suppliers can be measured

by its progress in military Research and Development. The •

British Government did not properly develep science in India

'tn""" 1 Z$' 7 1 'RF ~, II l IIi

38 Ibid., ~p. 73-74.

39 Ibid., p. 76.

251

for the purpose of military activities. However, same Techni­

cal Development Establishments tTDEs) were formed te give tech­

nical assistance and advice to ordnance factories during the

SecQild World War. 40 After India's independence, Jawaharlal

Nehru stressed the role of science and technology in every

field of development. He ·;:as advised by Dr P.M. s. Blackett

regarding essential links between science and defence in

the context of India's needs. The Defence Research and

Development Organization (DRDO) was fonned in 1958 after

amalgamating the TDEs. In view ef tile increasing impertance

ef R&D in defence, the 8ffice of the Scientific Advisor te the

Ministry of Defence was also established the same year. ~e

initial efforts of the DRDO laborateries were to indigenise

certain i tens (Df ordnance and improve than to meet varyini

environmental cGnditions. But after the conflicts of 196os

and early 1970s many deficiencies became clear, and it was

felt that the eml_i)hasi3 should be on indigenous desi~,

develo[Xllent and production of l·veapens. 41

Naval R&D under DRDO was ke~t as a lew priority

area for a leng time. While the ordnance factories depend

heavily ~n the R&D inputs from the DRDO, mest of the defence

public secter undertakings have built up their own 'i~hGUse•

4o Nagchaudhuri, n. 2, pp. 237-8.

41 B.N. Kaul, "Gaps in Defence Research", Times of India, 29 A~ril 1978; see ~~sG Baldev Raj Nayar, !ndla's Ouest for Technplo,ical Independence : 'lbe Results ef Poiicz (New nelh~~983), voi. 2, pp. 489=92. ·

252

desi~ and develo~ent infrastructure and facilities. But with

the passaie ef time the DRDO also started cenducting research

which cctnt1•ibutes te naval as well other mercantile interests.

Seme of the important achievements of naval R&D under the

DRDO are in the areas of underwater acoustics, ~hysical

oceanography, underwater weapons, control of corrosion and

f~uling of marine structures, and precess technologies te

reclaim worn out machinery com~onents etc. The DRDO has also

participated in expeditiQns to the Antarctica, and its scientists

have s~yed there fer months together to conduct vari~us types

ef observations and research. 42 Defence R&D has made cQnsiderable

progress in the last few years, and helps in quality control of

weapens and ether equipments, and guards against their ebseles­

cence. However, the goa~ of self-reliance would depend heavily

en the time-~ag between the inception ef an idea to productien

~f a pretetype to general prGduction and delivery. The shorter

the time-lag, the better the position of our defence prepared-

ness as well as uti~isation of our resources. Fer this purpose

there should be optimum utilisation of our resources and

scientific and technical skill.

The Civilian Sector

'l'he development of a credible naval ferce with

indigeneus efforts was neglected for more than a decade after

42 India, n. b, p~. 94-96.

253

the independence of India. Several reasons have been put

forward fer this negli~ence on the part of our planners, viz.

the influence ef the British Government, absence of threat

perceptien from the seaside, financial stringency, etc.

Hewever, one of the significant reasons was the failure to

relate the naval ruild-uFJ with econemic development and growth.

It is ~enerally underst~~d that naval forces are essentially

capital intensive in nature, and involve the acquisition of

ships and bases which are too expensive fer third werld

countries. Ca~ital-intensive activities may have appeared

unsound fer a country that has a surplus ef unemployed and

unskilled manpower. That is why a more labour-intensive

force like the anny was encouraged more than the ~vy.

The abevementiened viewpoint, however, igneres the

develepmental angle ef the armed forces. The problem arises

when naval forces are seen in isolatien with the general

defence forces en the one hand, and the overall econ~ic

develepment on the other. With recent developments in

marine science and techneleiy, and discovery of new ocean

resources, the role ef the Navy does not remain only to defend

the shores of a c~untry. 43 The establishment ef the Exclusive

Econanic Zene envisages the new role of navy and coast guards

in patrolling and defending its resources. As we have already

43 Den Walsh, ed., The Law of the Sea: Issues in Ocean Resource Management (New York, 1977), pp. 247-9.

254

discussed in the preceding pages, the naval shipyards help the

fishery industry and oil exploration by building fishing

trawlers, drilling platforms etc. Sec~ndly, activities in

naval shipyards are intimately cennected with these in other

defence prGducticn units, as no single part of defence services

can be self-sufficient by itself. In modern warfare they

complement each ettler in actien and a "rar can be wen enly if

there is preper c~-ordination ameng them. There is no l~nger

a ch~ice benieen land power and seapower; the two are closely

related. Likewise in defence pr~duction, they canplement

each other as we have already discussed. Thus if the HAL

manufactures retary and fixed-wing aircrafts for the naval

air arm, the MDL and GRSEL also cater te other defence needs

througn their various diversification pr&grammes.

The linkages between defence forces in general,

and naval power in particular, on the ene hand, and economic

potential ef a nation on the other, are very clese. Nowhere

is this link better illustrated than in the British naval

history. A powerful economy provided England with the

strongest navy, and vice versa, for almost twe centuries. A

Soviet expert, s.G. Gorshkov, asserts that "a medern warship

is net enly a ~reduct of majer industry, but at tbe swne

time an example of it. A ceuntry with mere developed majer

industry enjoys almost a monep0ly on the c«nstructien ef tnese

255

warshi,s. n44 A well developed civilian industry and teobnol._

gical infrastructure only can supply higp quality steel and

~lates fer the ships. It would be very difficult and expensive

to have specialized defence fact0ries large enQUgh to meet a

ceuntry• s entire requirements during war. So it becames

necessary to mobilise the entire industrial ca~acity of a

nation for defence production. vfuile the su~ply of strategic

materials for defence is planned in the defence sectGr only,

there is dependence on the civilian sector for raw materials,

intermediate prGducts and common com~onents. On the other

hand, domestic military production too contributes to the

develo~ent of civilian infrastructure, as it tackles sQDe of

the structural obstac~es tG their growth. If the defence sectar

is integrated into the metal and engineering industries, there

weuld be ~ssitive association between the expansion of both

sectors. 45 In India, the expansion of the ordnance factores

and the establishment of defence public sector undertakin&s toek

,lace along with the expansion of steel, engineering and power

sectors in the 1950s.

The process of industrialisation started during the

British rule when a fairly large railway network,

44 S.G. Gorshkov, Red Star Rising at Sea (Anna~olis, 1974), ,. 179.

45

256

a lar~e factery based cotton textile and jute

industry; •nd modest iran •nd steel, su~ar, cement, coa1-m1nes,

~ewer, defence and some other heavy industries had shown a

beginning. But the government ef independent India inherited

a gigantic task of rebuilding existing industries which were

badly wern-eut throu~ war and partition. 'Ihe ecQ!lomy of the

CQuntry required far mere metals, fuel and other means cf

production than the Western countries did at a similar stage

ef devele~ent. 46 This shape of India's economy required a

planned economic development througP government's participation.

The government of independent India committed itself tc ~lanned

development of tile econemy. The first Five Ye•r Plan was a

transitional ene which aimed at devele~ing agricul"b.lre to fill

the gap in feodgrains and raw materials created by the

partition of the country. But it was, nevertheless, realized

that agricultural production itself was dependent en industrial

develepment which could provide tract~rs, harvesters and other

equipment as well as pGwer ~enerating units for the supply ef

electricity and water. Inspired by the Mahalonobis medel,

the share of industry was raised in the second plan, se that

the agrarian sector was net hampered by shertaies and high

prices of inputs like tractors, pumpsets, fertiliser,

pesticide and power. The third plan was an important step

46 G.K. Shirokcv, Industrialisatien'of India (New Delhi, 1930)' p. 9.

257

towards the long-term industrial development of the country,

extending ever the next 15 years. In spite of uneven

performance during the third and subsequent annual plans, a

diversified industrial structure was established and substantial

capacity was created in many new areas. In order to strike a

balance between excess capacity in some areas and low capacity

in scme 0ther, the process of industrial development was souiht

to be linked with the res0urce base, the technological capacity,

and the need for dis~ersal of industries to create non-farm

emp~loyment in small towns and rural areas. By the end of the

sixth plan, there was an impressive CQntributien from the

agricultural sector, better supply of c~al and steel in spite

•f infrastructure and transport constraints, easier pewer

situation, and controlled inflation. 47 In s,ite ef many

shortfalls over physical tariets there was ne disturbing trend

in the c~st ef living indices; and the index ef all industries

alse rese appreciably as compared to 1983-84. The shortfall

in investment in certain sectors was also •ffset with

contribution by the ~rivate sector and an unprecedented

b•om in new capital issues, se that the load on the public

sector was reduced.

Iron and steel forms the backbone of a natien•s

progress and prosperity; and every ceuntry, without exceptL•n,

47 P.A. Seshan, "Challen~es of Seventh Plan", in The Hindu, Survey of Indian Industries, 1984 (Madras, 1985), p. 3.

258

has had a feundatiQn of steel industries in its develepment

progrtml!Ile. Since tlle 1950s there has been great widening out

from the nerth-west of the United States and industrial Western

Europe. The share ~f S~viet Russia, its- Comecon partners, and

that of Japan in EJeel preduction and consumption went up

~henomenally by the 1970s. There may be mere radical chanies

ahead as the third world countries are imprGVing thei~

prospects both as consumers and producers of stee1. 46 The

development of steel industry requires the proximity of ere \

reserves which are the starting !>Oint ef a long mamfacturing

~rocess. India has rich and extensive depGsits of iron ore

in Sauth-eastern Bihar and northern Orissa, thou~ production

has grown rapidly in Madhya Pradesh too.

India has a l~ng history of workin~ ferreus metals,

and wreu@:lt iran beams have been found in old ruins of Indian

temtlles. Tile famous Toledo sw0rds of Damascus \\h.ich could be

bent from hilt te tip, taking unsurpassed cutting edge, was

made by str"ng and f.lexible weetz iron produced at Hyderabad

and Trichinapally. 49 The earliest attempts to produce ircm

and steel by modern methods in India was made in 1874, rut competition fran imports accounted for its failure. However,

48 Kenneth Warren, World Steel : An Econ.mic Geegraohy (New York, 1975), pp. 308-9.'· .

49 w. s. Woytinsky and E. S. Woytinsk·y, World Polulatiens and Pr~ductien : Trends and Outlook tNew Yerk, 953), p. 1099.-

259

the Tata family successfully started produci~ iron and steel,

and rails by 1915 at Jamshedpur (then Sakchi), which Was between

Damooar Valley coal fields and Singhbhum iren ere belt. Apart

frcm TISCO, IISCO (Burnpur)wJVisvesraya Iron and Steel Works

(Mysore) were ether successful integrated projects in pre­

independent India.50

After indepemence it was realized that TISCO and

IISCO could not meet the demands of steel fer the purpose •f

machineries, construction works, shipping, railways and agri­

cultural implements etc. In 1946, the Iren and Steel Panel

estimated phenemen~l increase of Indian steel censumptien and

suggested new works. That is hew new steel plants in Bhilai,

· RGurkela, Durgapur and BGkaro were established in the course

ef two decades in technical c~ll~boratien with the Seviet Unien,

Britain and West Gennany. 51 In the feurth five year plan,

three more plants were established at Salem, Vij~ynagar and

Vizag to create additional c~pacity. In Grder to ensure ce­

erdinated development ~d better management of the steel plants,

the government ~urchased all the shares and transferred their

50

51

Warren, n. Li3, pp. 292-5.

W.A. Johnson, The Steel Industry ef India (Harvard, 1966), pp. 14-15; see ilso US, CGngress, Senate, Committee en Ferei~ Relations, Subccmmittee on Technical Assistance Progriilllls, Soviet Technical Assistance to Non-Cemmuni~t Asia, 84th Cong., 1st session, 16 June 1955, ''· 9t1 •

260

full ownership to the Steel Authority ef India Ltd (SAIL). In

1983-84, while many steel plants in developed countries were

clesed down due te uneconomical ~erformance, SAIL achieved

highest ever indiienous sales of steel in domestic market and

alae made an ent~y into hi~ly competitive expert market.52

Bbilai and Bokaro ~lants are new in their final phases ef

ex@ansion te four million tonnes af capacity each, and are

geared te contribute to the ~reduction ef many high value items

in ccming years. India has emerged as the largest steel making

base in the developing werld with a larie technically skilled

manpewer, a supportive and supplementary base and an extensive

censultancy network.

Non-ferrous metals like aluminium, copper, zinc and

lead provide the basic inputs and cemponents for electrical and

engineering industries, including power generatien and trans­

mission. The censumpticn level of these metals is very lew in

India by world standards, even though tile country is richly

endowed with reseurces to produce them. The largest part of

aluminium is c~nsumed by the power sector, and the rest goes

into trans~ortation, cable and conducter manufacture, defence,

mint, utensils and consumer durables etc. ~e largest

ccnsumption of copper is also in the electrical sector, and the

52 s. SmnaraF>ungavan, "Steel Industry looks te future with Confidence", 'lhe Hindu, n. 47, p. ·33.

261

demand fer zinc and l~ad is alse going up due to sophisticated

industries. But production has suffered in recent times, owing

to serious power constraints affecting the smelter capacity

utilisation. 53 Only when the production costs of primary

metals and their semis are brought do'WI'l, the devele~,Eerrt ef

engineering and other industries vtould get a fillip.

Heavy industries cover a wide range ef engineering

industries which provide goods and services to almost all

sectors of economy. The importance of such industries is

evident by the fact that practically everything is manufactured

either by machine toels or by mechanisms made by them. 54 They

were started in India after independence and helped to modernise

the agriculture wi til modern equipments, and also te gain self­

reliance in industrial production with all kinds of electrical

and non-electrical machinery and transportation equi~ents.

Some important industries in this sector are Heavy Engineering

CQrl?oraticn (HEC), Bharat Heavy Electricals Ltd (BHEL),

Hindustan Machine Teels (HMT) and Engineering Project of

India Ltd (EPI). 55 They are involved in producing steel

~lant equipment, structures, machine and teols, mining

53 M. Vinayak, "Costly Ex~erience in No~ferrous Metal Sector", The Hindu, n. 47, p. 49.

54 Woytinsky and 1:!&ytinsky, n. 49, p. 1146.

55 Details ef 19 industries in the Public Secter are given in India, Ministry of Industry, Department of Heavy Industry, Report 1983-84 (New Delhi, 1934), pp. 17-25.

machinery, automobiles, power generation machines and construe-

tion work. I

Power gener~tion is one ef the m•jor constraints in

the ca~acity utilisation of all the industries, and agricul­

tural production too. A mechanised civilization is a high

energy civilisation, and we weluld have little use for machines

with~ut control Gver supply of energy; and, in fact, could not

even build them. In modern times, coal, oil and gas, hydre­

pcwer and nuclear energy have replaced the muscle power of man

and anim.al, and also wind an:l. sun. In spite of streng cempeti tion

frcrn oil and gas, coal still remains the most important source

ef ~ewer in industries for smelting (reducing agent),

calcinatien, burning clay, tempering etc. India's main coal

fields are in the Damed-.r Valley, and there are about 16

washeries with total capacity of about 20.5 million tonnes.

A major im~ediment to its effective utilisation in metallurgical

and ~1ermal power plants is its high ash cGntent.56 An

increased production of good quality ccal would require

substantial R&D inputs in the areas of mining at greater

depth and from thinner, seams, benefaction, ce.nversion,

transport and conservation.

The National Thermal Pewer Corporation and the

National Hydre- electric Power Cor~cration were incorporated

56 T.P.S. Rajan, "Potential New Areas of Coal Utilisation", The Hindu, n. 47, pp •. 57-59.

in the Department of Pewer in 1975 as central generating

cm1~anies to plan, promote arrl organise the integrated

development of thermal and hydrO-electric ~ewer ~eneration,

execute ~rejects and associated transmission lines. 57 The

power generati~n ca~acity depends on equi~ment and machinery,

like turbines, boilers, transformers, rotating machines,

contrels, capacitators, rectifiers, and ancillaries etc.

The bulk of pewer machinery now being installed in the country

comes frem indigenous seurces, mainly BHEL. It has also

developed maillete hydro-dynamic generaters at its Tiruchy

unit which converts c~al heat directly inte electricity without

using water or steam. But there is still shortfall in achieving

the power target, which is due to delays in civil construction

and delivery of heavy equipment, besides effective monitoring

of progress of various schemes. For instance, Hungarian

su~~liers &f boilers could not make ~rempt deliveries to the

new 210 Mv: unit at Neyveli, and so its cQIUilissioning was

delayed for more than a year. 58 Many electricity boards have

made grandoise ~lans for power supply, but they do not find

sufficient funds for them. An integrated ap~roach t9 eutstandini

financial and supply issues will only faciLitate a better power

SUf:'ply.

57

58

India, Ministry of Energy, Department of Power, Report· 1983-84 (New Delhi, 1984), pp. 22-23; -see als.o UN, Economic and Social Commission fov Asia and the Pacific, Electric Power in A<Jfa and the Pacific, Sales NQ. E.85. !!.F.2 (New York, 1 4), p. 12. Leo, "P<»wer 'l'arget Will Call fer Imaginative Approach", The Hindu, n. 47, pp. 65-67.

264

Nuclear energy has made such proiress in the last

three decades in India that the country has emeried as the

only developing country to have the complete fuel cycle, frem

exploration and mining to reprocessing and waste management.59

India has reasonably assured uranium reseurces of which more

than 4o per cent arA considered econemically exploitable and

capable of first staie nuclear power pr~gramme, co.nsistin& ef

natural uranium reactors. \Vhen fast breeder reactors start

functiening, the country can dra"' on its huge thoritnn

deposits also. There are certain censtraints, as in the area

of enrichment technelogy, but the Indian scientists have been

able tc develop :r.mx fuel which may be able to substitute

enriched uranium in future. MQreover, the R&D activities in

the DAE have resulted in several spi~offs, and building up

of capabilities in material sciences and metallurgy, and

electronics and chemical engineering etc. 60

Communications play a key role in the development

precess; and natien~l ~regrammes are geared to enable their

59 Indi:., Depar1rnent of Atcxnic Energy, Report 1233-84 (New Delhi, 1984).

60 P. K. Iyengar, "Spinoff s of Nuclear' Ener&Y Progrwune", The Hindu, n. 47, p. 81; The shortfalls in atomic energy productien is attributed to two constraints, namely limited industrial infrastructure to su~port the nuclear programme and restrictive practices in interna~ienal trade in nuclear materi:.ls. See India, Department of Atomic Energy, Estimcttes Committee 1983-84, Generation ef Electricity, seventh Lok Sabha, 82nd Re~ort, 25 April 1984, p. 6.

use being made effectively in agriculture and rural development,

ed\Jlcatien, family ~lanning, national inte~ration, envirenmental

protection and energy mana~ement etc. They include departments

of ~ost and telegraph, telecommunications and so on. Now

telecommunications are being fully mQdernized with electrenic

exchanges, digital microwave system and satellite cemmunications.

The liberal pelicies re~arding electrenics industry and

indi~eneus ~reducti~n ~f semi-cenductors etc. have facilitated

a shift frQn analogue to di~i tal technology. 61 'lhis has.

revolutionized the ccmmunications, and then the industrial

and CQnsumer sectors.

The transport sector assumes high priority due to the

size of India and the geographical dispersal of its natural

res0urces. The princi~al medes Gf trans~ort are reads and

railWays, thou~ there are significant devele~ents in air 62 traffic and $hipping toG. The Indian Railways is the bi~gest

public sector undertaking in India, largest in Asia and fcurth

in the world. After independence, we inherited a sick railway

system from the British and were largely de~endent on imports.

But indigenisation of this industry started ever since, and

ste~~ locanotives are new gradually being replaced by electric

and diesel engines. The road development programmes have laid

61 India, Department of Electronics, Annual Reeert 19§3-84 (New Delhi, 1934), p. 5. .

62 India, n. 20, pp. 377-94; India, n. 18, pp. 34-43.

266

em~hasis en balanced and coordinated develepnent of read

network under natienal hi~ways, state highways and majer

district reads; and rural reads alse in the village and tribal

areas. Shirping and civil aviatiQn account for a smaller

percentage of traffic, but their importance lies in transport

te unconti~ous areas. The coastal states have set u~

inland water transp~rt or~nisations, whereas overseas

shipping nas also registered significant growth in last three

decades. India has built many major and min~r perts, and

substantial shi~building capacity. Civil aviation has also

ex~erienced rapid ~owth in the last twe decades. There

are feur international airports and 85 other aeredromes. Apart

from Air India and Indian Airlines, a third level air service

has also been started to ~revide better trans,ortation te

difficult and is~lated areas.

The foregoing survey of the industrial activities

in India hel~s us te reach the CQnclusion that the eco.namic

strength and political independence of the country is dependent

on the agricultural and industrial production. This is matched

by techn~l&gical independence which is best a,preximated by

measurement of inves"bnent in Research and Devel(j)pment. Though

India has a huge technically qualified man~ower, the tetal

expenditure on science and technolegy is net satisfactory as

yet. There are more than 130 specialised.lab&ratories and

institutes conducting research on agriculture, medical science,

267

atomic energy, space, ocean and ether ~reas. Public and private

secter undertakings have also established 'i~hcuse' R&D

laberaterics te meet their internal technolegical requirements. 63

On the other hand, the real test of such research is in the

fact that they are successfully beu1g em~loyed in the

production process. The amount of resources devoted to the

R&D of a particular industry depends on how closely that is

related to defence, medicine or other social needs for which

the state assumes major respensibility. The implementatien

of 'Lab to Land' and 'Lab t~ Industr~ policy, in the sense

of result.Qriented research in an acceptable time frame, will

be able to fill the empty cells ef industrial development.

Civilian industries acquire their direction and

technological momentum, ~s we have discussed, from defence

related efforts of the state te create a group of strategic

industries. But they outstrip the military sector in course

of time, as is evident from government expenditure en them. In

this 3nooth transition lies the essence ef development~ In

ether wcrds, defence eff~rts help to build the infrastructure

which is utilised by the civilian sector in a nation's

development progr~nmes.

63