Defence offsets in India worth nearly USD3.7 billion had been discharged or were under review by the Ministry of Defence (MoD) at the end of fiscal year 2020–21, recently updated MoD statistics show.
The newly updated figures also show that the value of discharged offsets increased strongly between October 2020 and the end of March. This increase is notable against a background of challenges related to the Covid-19 pandemic, which has disrupted defence-industrial supply chains.
According to the MoD figures, discharged offsets in India up to the end of March were valued at USD2.49 billion: a 28% increase over the value of discharged offsets in October 2020 when they were valued at USD1.94 billion.
At the end of March, offsets valued at USD605.85 million were classified by the MoD as “incomplete” or with “clarifications sought”. Offsets worth a further USD574.5 million were “under examination” by the MoD’s Defence Offset Management Wing (DOMW) and the Controller General of Defence Accounts (CGDA).
The data also show that between 2005 – when India introduced its offset policy – and December 2017 defence offsets worth just USD88 million had been discharged. However, the value increased substantially to USD1.19 billion by the end of 2018 and to USD1.94 billion by October 2020.
Separate data issued by the DOMW shows that 55 defence offset programmes are currently underway in India.