MMRCA deal not to be affected by the new offset rules: MoD; Reports: US endeavors to rope in India for building a ring of missile defence systems encircling Russia and China
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  • The Defence Ministry has decided that new rules that relax defence offset obligations to include the civil aviation and internal security sectors will not apply to the upcoming $10 billion contract for medium multi-role combat aircraft (MMRCA) and the older rules restricting the investment to the defence sector will remain in force. The Air Force contract for 126 medium multirole combat aircraft (MMRCA) is now at a decisive phase, seven years after the efforts for the acquisition began. The ministry is certain that it will conclude the contract in the coming financial year.1

    The United States has been trying to rope in India for its plans to build a global missile defence system threatening Russia and China as a part of its policy of encircling and containing Russia and China. Indo-U.S collaboration on missile defence has so far been confined to technical and fact-finding discussions. The Government of India has focused its attention increasingly on developing indigenous Missile Defence system capabilities and has ruled out any possibility of joining the United States’ Missile Defense system.2