India allocates about 1.8% of its GDP to the defence spending and ranks among the top 10 countries in the world in terms of defence expenditure. With only 35% of defence equipment manufactured in India, it also is one of the largest importers of defence equipment. Even if the defence equipment are manufactured in India, it involves huge import cost of raw material.
To overcome the above-said challenge and to promote the Government’s “Make in India” initiative, the Ministry of Defence is focusing on increasing the defence manufacturing in India. To leverage the defence imports and to boost domestic defence manufacturing industry, the MoD has an “OFFSET POLICY” in place. The offset policy was first made the part of Defence Procurement Procedure (DPP) in 2005. The policy has gone through a lot of revisions over time and the latest revision to it were made in 2016.
This infographic share the top 10 trends in the Indian Defence Offset Business to forward in 2017.