Defence Minister informed the Indian Parliament in writing on 14 May 2012 that 17 contracts worth 4.27 b USD were signed as defence offsets. Out of this, 3.43 b USD were for IAF- related projects and 843 m USD for Naval projects. Nothing for the Army; may be some would come in the coming months.
The budge about the defence offsets in India is right, but unfortunately most of it, for the time being, is for Govt. Units, Large Private Sector Units and DRDO /Other High-End R & D with almost none for micro and small enterprises. SMEs are likely to figure towards the tail-end unless Obligors prefer them. Offsets-Cash/Kind-given to large units are slated to yield low returns for the Indian Defence Industry for various reasons.
ToT-Quality & Depth, Valuation for grant of Offset Credits, Strict Implementation, Inclusive Distribution of Offsets,
Plugging Leakages, ETC, should be some of the major concerns of the Govt. and Industry.