India likely to ease offset norms to include aviation, internal security

New Delhi: In a statement that would come as welcome news to the foreign defence industry, a senior Indian diplomat has said India is likely to expand the scope of defence offsets to include the sectors of civil aviation and internal security. India also said it expected progress in the issue of relaxation of US export control on dual-use items.
While foreign players have been pleading for a relaxation in the tough defence offsets clause — in some deals contractors need to invest up to 50 per cent of the contract value in the Indian defence industry — this is the first official indication that the government may be diluting the norms.
Indian Ambassador to the US Meera Shankar on Wednesday said while it might be a bit early to raise the FDI cap on the defence sector, the government is more likely to bring about changes in the offsets clause.
04/11/10 Manu Pubby/Indian Express

To Read the News in full at Source, Click the Headline

Categories: Foreign Nov 2010, Indian Aviation- In General Nov 2010