Defense Offsets: Ministry of Defence Not To Reconsider Offsets Policy

Defense Offsets: Ministry of Defence Not To Reconsider Offsets Policy


A section of the media has reported about the midterm review of the Defence Offset Policy at a seminar to be held on 14th of this month.In this connection it is clarified that the offset policy has been designed by Ministry of Defence carefully after studying all aspects between direct and indirect offset. In order to encourage Indian Defence Industry, a well considered decision was taken not to allow indirect offset. There is no rethinking on this subject as reported in a section of the media.India's defence offsets policy is to bring in $10 billion during the 11th five-year plan period (2007-11). India is looking for direct offsets in all capital acquisitions of the defence ministry to strengthen the capabilities of its indigenous industry.The government had announced the new policy for capital acquisitions in which the minimum requirement is of 30 percent offsets in all acquisitions where the purchase cost exceeds Rs.3 billion. Nearly 80 percent of all offsets are in the area of aerospace.