Although India has established a formal mechanism for implementation of the defence offset policy, the structure and procedures lack the thrust to fulfil the objective of energizing the Indian defence industry. Besides, the policy is not supported by the existing Foreign Direct Investment (FDI) and licensing policies. While evidence suggests that domestic industry can absorb offsets, what India needs is an effective body to handle offsets, liberal FDI and licensing policies, and a better banking provision.
This article intends to examine the notion of 'Revolution in Military Affairs' (RMA) in China and how the People's Liberation Army (zhongguo renmin jiefangjun) is thrusting RMA initiatives on its modernization programme. It sheds light on the issue of China's 'RMA-Driven Military Modernization' programme and situates the effect of these initiatives in the Indian context.
