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Economic Offsets Estimation in recent Defence Procurement Programme: Hearings | PMG

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Defence Procurement and Industry Policy: A small country perspective

Ashok Leyland. Market Watch. Pinterest Reddit. The government is considering developing nationwide specifications for public procurement of goods by Central government agencies to encourage domestic suppliers to plan their production schedule, an official said.

The proposal is likely to be included in the new industrial policy being prepared by the commerce and industry ministry. The policy may also suggest extending the offset policy in public procurement in sectors beyond defence such as electronics and ICT. The official said standardised specifications of products would enable government departments and public sector units PSUs to release large orders helping the industry achieve economies of scale.

The government and PSUs procure goods and services worth over Rs 5 lakh crore every year, as per estimates.

The future of Britain’s defence industry

Standardised specifications would also help domestic industry plan their production and technology well in advance. In absence of this, government agencies place small orders with different specifications and requirements. The ministry has developed an e-marketplace portal GeM for buying of goods and services by different government agencies and departments. Offset policy has helped countries in encouraging investments and transfer of technology. This is currently used in defence sector in India. The proposed industrial policy may recommend extension of offset policy in areas such as electronics and ICT initially.

The policy aims at modernising the existing industries, reducing regulatory hurdles and encouraging adoption of frontier technologies such as robotics and artificial intelligence. The proposed policy will completely revamp the Industrial Policy of A draft industrial policy has talked about creating large number of jobs, promote foreign technology transfer and attract USD billion FDI annually.