Foreign companies discharged defence offset obligations in India worth just USD2.2 billion between 2005 and late 2017, a report issued by India’s Parliamentary Standing Committee on Defence has said.
The report also revealed that the total value of the offset since 2005 is less than 20% of the estimated obligations that the government expects to secure through offsets up until the mid 2020s and that defence contractors have experienced several difficulties in navigating the policy.
In its report, the committee said that the Indian Ministry of Defence (MoD) has signed 42 defence offset contracts with foreign contractors, with nearly two-thirds of these deals supporting Indian Air Force (IAF) acquisitions.
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