Indian government has decided to forego the offset clause from inter-government and single vendor deals for procurement of military equipment, days after foreign firms including Dassault Aviation were called out for not meeting obligations of domestic investment undertaken at the time of securing the deals.
The Indian Ministry of Defence has reportedly cited failure to achieve the desired objective of bringing advanced technology to India through foreign vendors, as the reason for its decision.
While speaking after unveiling of new Defence Acquisition Procedure (DAP) 2020 in New Delhi, Apurva Chandra, Special Secretary and Director General (Acquisition) said, “We have made changes in offset guidelines. From now on, there would be no offset clause in government-to-government, inter-government and single vendor defence deals.”