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.
The decision to appoint CDS is an important milestone in India’s quest for complete integration of its defence forces; a significant step towards seamless coordination, better efficiency, and greater effectiveness of the national defence architecture in meeting the challenges of the 21st century.
Shortage of funds even to service the committed liabilities raises questions about the financial affordability of the defence modernisation programme and viability of the push for ‘Make-in-India’ in defence.
That the AK-203 would be produced in India with 100 per cent indigenous content in less than three years makes it a win-win deal for the Army and the Make in India initiative, with Ordnance Factory Korwa emerging as the biggest winner.
The CAG report relating to the Indian Air Force has highlighted various anomalies and the unprofessional manner in which defence acquisitions are handled.
The eight per cent hike in the interim defence budget 2019-20 is bound to further intensify the resource problem of the MoD, which is already battling a massive shortage of funds.
Defence capability building and capability sustenance have been adversely affected over the past decade because of inadequate allocations and the status quo approach of the Defence Services.
Draft DPP 2020 - Legacy Issues in Offset Guidelines
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.