The changes proposed in the offset guidelines require a fresh look, both on conceptual and empirical grounds, as the new regime is likely to yield diminishing returns.
India needs to have a public version of defence manpower database as part of its annual budgetary document. This would facilitate greater understanding and analysis of any possible manpower-related reforms in the future.
The draft offset guidelines 2020, with revamped features, is a bold attempt at attracting technology and investment as well as promoting defence exports. However, the MoD may consider further refining some of the features of the revised guidelines.
Self-reliance in defence may be better realised if India’s military instrument were to be shaped by political guidance and geopolitical considerations instead of being carried away by the contemporary winds of COVID-19.
Although the new measures announced to fast-track the defence sector are significant, they do not add up to a comprehensive and overarching reforms package.
Inclusion of new clauses in the draft DPP-2020 and changes made in some of the existing ones are intended to make the SCD more comprehensive. However, there is a scope for bringing about textual clarity in the new as well as some of the existing clauses of the SCD, especially those which have been modified.
Redrafting the chapter on post-contract management, expatiating the concept of contract operating officers and clearly defining their role and responsibilities vis-à-vis the other agencies, could go a long way in serving its purpose.
It would be advisable to review the proposed offset guidelines keeping in view the feedback from the industry, especially the foreign vendors who carry the primary obligation to execute the offset contract, as also the legacy issues.
Should MoD Persist with Defence Offsets?
The changes proposed in the offset guidelines require a fresh look, both on conceptual and empirical grounds, as the new regime is likely to yield diminishing returns.