Foreign firms want India to simplify cumbersome offset policy
Pilatus sold 75 PC-7 Mk II trainers, like this Bruneian example, to India. However, the Swiss company is one of many struggling to fulfil offsets obligations. (Gordon Arthur)
While offsets are one way of upskilling the domestic industry, most foreign OEMs find India's policy unnecessarily difficult and full of risks.
Foreign OEMs are agonising over India’s changing offsets policy over the past 15 years. Convoluted regulations have entangled them in a $100 million quagmire of penalties, lack of options when tapping local products, financial books blemished by years of pending dues, and regular threats of being blacklisted by the MoD.
It is expected that half of all contracts will be charged penalties within the next two years. OEMs have called for an end to the stalemate, suggesting an empowered dispute resolution body for legacy contracts.
They could then start on a clean page, as Defence Acquisition Procedure (DAP) 2020 can
Already have an account? Log in
Want to keep reading this article?
More from Defence Notes
-
![Amazon Project Kuiper emphasises user-friendly solutions for multi-domain connectivity (Studio)]()
Amazon Project Kuiper emphasises user-friendly solutions for multi-domain connectivity (Studio)
At DSEI 2025, Shephard's Alix Valenti spoke to Project Kuiper's Rich Pang about the importance of enabling seamless communication between allied forces such as NATO members in challenging operational environments.
-
![DSEI 2025: Raytheon UK CEO highlights RTX skills, innovation and UK footprint]()
DSEI 2025: Raytheon UK CEO highlights RTX skills, innovation and UK footprint
At DSEI 2025, James Gray, Managing Director and CEO of Raytheon UK (part of RTX), outlines the company’s century-long presence in the UK and its evolving role across defence, aerospace, cyber, and training domains.
-
![Israel defence ministry pushes ambitious spending plans for tanks, drones and KC-46 aircraft]()
Israel defence ministry pushes ambitious spending plans for tanks, drones and KC-46 aircraft
The procurement and acceleration production plans – some of which still await approval – across the air and land domains will aim to strengthen the operational needs of the Israel Defense Forces.
