Policymakers need to ask themselves ‘What Really Makes Offsets Tick?’ in order to develop an objective framework based on sound principles repeatedly noticed in the offset regulations of ‘The Smarter Lot’ of countries and in the process avoid committing the seven ‘original sins’ that a poorly-designed offset policy may entail.

The Indian defence industry needs procedural clarity and simplification to be ingrained in the “Make” procedures, as the rules are presently silent on a number of important operational aspects.

For the mantra to become an all-pervasive reality in defence acquisitions in India will be to multiply manifold the onset, frequency, range and depthof its industry engagements.

Despite “indigenisation” being an important policy objective in defence procurement it will be useful to observe the recent US regulatory developments on detection and avoidance of counterfeit components in defence procurement. The new US developments could also perhaps inform the MoD efforts for streamlining its own Defence Procurement Procedure (DPP)

It may perhaps be useful to examine some features of India’s Defence Procurement Procedure (DPP) for streamlining of the capital acquisition process for defence procurement. After all, the DPP may well be the only procurement regulation in the world that discriminates against its own domestic bidders

Most developed economies are already feeling threatened by increasing equity investments sponsored by foreign government-owned and/ or foreign government-controlled entities in the defence and high-tech industries. A coordinated government response for supervision of foreign investments will emerge on the horizon sooner than later.

It is time that India’s offset regulations and defence procurement procedures are weeded for provisions formalising differential treatment against Indian bidders.