Indian Defence Minister stresses good aspects of offset clause

by: Matthew Potter
May 28, 2008

Category: development program, India, Military Aviation, Proposal | RSS 2.0

Bump – According to this article as a way to meet the 30% offset requirement, EADS offered to let India join the Eurofighter upgrade program. India would become part of the program’s member countries, the fifth one to join, and also would have the opportunity to participate in other planned EADS programs.

India’s government currently requires that any contract awarded to a foreign defense company have a 30% offset clause. See an article here. Minister of Defense Antony recently reassured foreign companies that this is not a bad thing. For the new fighter contract currently being bid on by various American, European and Russian companies the offset will be 50%. Some of the offerers are balking at this provision. The Minister rightly points out that this kind of offset will allow the foreign companies to develop capabilities in India that might benefit them in the long run.

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