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India's Offsets Fail to Deliver Strategic Gains
India wants to buy weapons from other countries but also wants those countries to help India make its own weapons.
The plan is called an offset.
But the plan has not worked well.
Only about half of the money that should have been spent on Indian companies has actually been used.
The government also wants new technology from foreign companies, but very few of those deals have succeeded.
A committee said the rules need to be stricter and that India should measure success by real technology, not just money.
The government also has to make sure that big deals between governments still involve Indian companies.
India's defence offset policy has not achieved its goal of tech sovereignty.
Only 55% of the $9.92 billion offset obligation has been claimed by vendors.
Technology transfer proposals have largely been rejected or stalled, with no successful transfers.
The Public Accounts Committee recommends stronger enforcement, quarterly reviews, and outcome‑based metrics.
Exemptions for government‑to‑government purchases leave major acquisitions outside industrial participation.
- Who
- Indian defence officials and oversight bodies
- What
- Shortcomings of India's defence offset policy
- Where
- India
- When
- June 4, 2024
- Why
- To build domestic defence manufacturing and reduce import dependence
Key facts
- Offset Obligation
- $9.92 billion
- Claims Submitted
- $5.47 billion
- Unsubmitted
- $4.45 billion
- Completed Contracts
- 20 out of 56
- Technology Transfer Success
- 0
- Penalty Total
- $94.98 million
Quotes
Ajay Kumar
Former Indian Defence Secretary
“Plan to get rid of offset policy; it does not do much good.”
NDTV









