Indian Defence Offset Policy: An Impact Analysis

Laxman Kumar Behera

Archive data: Person was Research Fellow at IDSA till September 2020 Dr. Laxman Kumar Behera joined MP-IDSA in September 2006. He specialises on issues related to Arms Procurement, Defence Offsets,… Continue reading Indian Defence Offset Policy: An Impact Analysis read more

The article assesses the impact of defence offset policy on the Indian defence industry, by taking into account two key parameters—foreign direct investment (FDI) inflows and exports. It observes that the offset policy has a mixed impact. On the positive side, the offset policy seems to have an impact on certain types of exports. On the negative side, the policy has not been a catalyst in bringing in foreign investment and technology inflows into the Indian defence industry, nor has it been successful in promoting its high-end manufacturing. Besides, majority of exports that the policy seems to have promoted is largely confined to parts and components.

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