India has revised its defence offset guidelines, making it easier for international defence contractors to dispense their offset obligations. The changes were announced by India’s ministry of defence in a revised offset document that runs to 38 pages. Foreign defence contractors who Flightglobal spoke to are still absorbing the changes, but generally feel the revisions are an improvement. New Delhi sees defence offsets as playing a crucial role in the development of a strong defence sector. Contractors are required to invest 30% of a deal’s value back into India through offsets, although in the recent case of the medium multi-role combat aircraft (MMRCA) competition, the offset value was 50%.
Source: Flight International