Defexpo Highlights India’s Procurement Needs
Show Report Defense Technology International Apr 01 , 2010 , p. 44 Neelam Mathews New Delhi India’s defense needs draw industry to Defexpo Printed headline: Buyer’s Market India’s rapidly growing defense programs attracted a number of major global contractors to the biennial Def- expo land and naval exposition here in February. Many were looking to establish or firm up partnerships with local manufacturers to meet the offsets mandated for procurement awards by the defense ministry. Though eager for business, most contractors want the government to relax the cap on ownership levels that has been imposed on joint ventures. The current foreign direct investment (FDI) limit favors Indian companies on a 74-26% basis over foreign OEMs, a level that many contractors say provides no incentive for technology transfer. India’s Defense Procurement Procedure (DPP) mandates a 30% offsets clause for projects valued at more than $65 million. At present, only $43 million worth of offsets ...