JOURNAL OF DEFENCE STUDIES

Indian Defence Offset Policy: An Impact Analysis

Laxman Kumar Behera is Research Fellow at Institute for Defence Studies and Analyses, New Delhi. Click here for detail profile.
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  • October 2015
    Volume: 
    9
    Issue: 
    4
    Focus

    The article assesses the impact of defence offset policy on the Indian defence industry, by taking into account two key parameters—foreign direct investment (FDI) inflows and exports. It observes that the offset policy has a mixed impact. On the positive side, the offset policy seems to have an impact on certain types of exports. On the negative side, the policy has not been a catalyst in bringing in foreign investment and technology inflows into the Indian defence industry, nor has it been successful in promoting its high-end manufacturing. Besides, majority of exports that the policy seems to have promoted is largely confined to parts and components.

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