The government has decided not to have an offset clause in procurement of defence equipment if the deal is done through inter-government agreement (IGA), government-to-government or an ab initio single vendor. The offset clause requires a foreign vendor to invest a part of the contract value in India.
The decision, part of the government’s new policy for defence acquisitions, was approved by the Defence Acquisition Council Monday.
Unveiling the new policy, Defence Minister Rajnath Singh, in a…