India received $4.2bn in aerospace offsets since 2005

Singapore
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India has received $4.2 billion in offset contracts from defence aerospace programmes since the introduction of its 30% defence offset programme in 2005.

Boeing was the largest contributor with $1.7 billion, defence minister AK Antony said in response to a question in Parliament.

New Delhi received offsets worth $4.3 billion from 17 contracts in total and the aerospace sector was the biggest contributor with 15 contracts.

The numbers include both completed programmes and those still underway. All of the contracts were signed during or after 2007.

The biggest offset generator was India's contract for 10 C-17s through the US foreign military sales mechanism. This deal is expected to generate $1.1 billion in offsets.

The second biggest offset generator was related to another Boeing programme, the acquisition of eight P-8I long range maritime patrol aircraft, which is expected to generate offsets of $641 million.

Other major offset contracts include the upgrading of India's Dassault Mirage 2000 aircraft ($593 million), the purchase of MiL Mi-17 V5 helicopters ($405 million) and the acquisition of MBDA MICA air-to-air missiles ($386 million).

All the programmes covered on the list fall under India's standard 30% offset requirement.

"Indian industry, both public and private sector, are benefitting through investments and purchases by foreign vendors who have signed offset contracts," said Antony.

"The positive impact of offsets on development of the indigenous defence industrial base will be visible in the coming years."

Notably absent from the list was an offset figure relating to India's acquisition of 126 Dassault Rafale aircraft under the medium multi-role combat aircraft requirement. This deal has yet to be finalised, but carries a special 50% offset clause.