Shripad Naik said 21 defence offset contracts worth 5.67 billion dollars have been signed (File)
Twenty-one defence offset contracts with cumulative value of 5.67 billion dollars have been sealed by the defence ministry in last three years, the government said on Wednesday.
Under India's offset policy, foreign defence entities are mandated to spend at least 30 per cent of the total contract value in India through procurement of components or setting up of research and development facilities.
Replying to a question in Lok Sabha, Minister of State for Defence Shripad Naik said 21 defence offset contracts worth 5.67 billion dollars approximately have been signed in the last three years.
"A study on impact of offsets on defence industrial base has been conducted by department of defence production through Institute for Defence Studies and Analysis (IDSA)," he said.
"According to the study conducted, till March 2019, MoD has signed 52 offset contracts valued at 11.79 billion dollars to be discharged through Indian offset partners," the minister said in a written reply.
He, however, did not clarify the length of the period in arriving at the figure of 11.79 billion dollars.
In May 2001, India opened up the defence sector to 100 per cent Indian private sector participation while putting the cap on Foreign Direct Investment (FDI) at 26 per cent subject to licensing.
Years later, the government expanded the FDI limit under automatic route to 49 per cent and above 49 per cent through government route.