Defence Offsets: International Best Practices and Lessons for India
The Monograph provides a comprehensive roadmap for reforming India’s defence offset policy which despite having gone through several rounds of revisions in past decade or so, still lacks effectiveness. The roadmap is based on extensive study of offset practices followed by six countries: Canada, Israel, Malaysia, South Korea, Turkey and the UAE.
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.
Refining Draft Defence Offset Guidelines 2020
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.
Making the offset policy work better
A dynamic offset policy has to include a mechanism for identifying the causes for likely delay or default on the part of vendors in discharging their obligation and removing the impediments faced by them
DPP-2016: An Analytical Overview
Introduction of the ‘Buy (Indian-IDDM)’ procurement category, the revamped ‘Make’ procedure, structural change in AAP, and higher and flexible indigenous content requirement in certain procurement categories are all likely to deepen the involvement of domestic industry in defence production.
Indian Defence Offset Policy: An Impact Analysis
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.
Designing Sound Defence Offset Policies
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.
