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The present offset regime should be recast and remodelled to incorporate provisions that will enable Indian firms, including the private sector, to derive maximum advantage, the Indo-American Chamber of Commerce has suggested.
In a presentation made at the Indian business leader's interface with visiting 11-member delegation of Business Executives for National Security (BENS), US, the Indo-American Chamber of Commerce (IACC) said that the private sector's share in offset contracts signed till date is 65 per cent.
They are mainly in the areas like fuselage, cabins, tail cons, overhaul and repair facilities, simulators and training facilities and ground handling equipment.
"We need a shift in areas covered under offset to optimally use the offset contracts. We are impressing upon the ministry of defence to come out with a list of areas, technologies, products, and skills that need investment," the IACC said.
The other suggestion is to move away from the present regime of measuring the value of the offset to gauging the outcome since that will reflect whether the offset clause has served its purpose or not.
Also, Original Equipment Manufacturers (OEM) should have the freedom to invest in pre-defined areas so that the scope of the policy is widened, the chamber said.
Lalit Bhasin, IACC Executive Vice President, said that the scope and opportunities for trading and investment between India and the US is more than before in the light of some of the government's flagship programmes like Make in India programme, Digital India, Smart City, Startup etc, designed to deepen manufacturing and digital space in India.
"Our defence expenditure is going up so also expenses towards aviation and aerospace. The US can legitimately look forward to have its share in India's growing requirements in these areas," he said, while inviting the US to invest in manufacturing, defence and skill development.
He also highlighted the Rule of Law guaranteed by the Indian Constitution, which puts India ahead of other countries in safeguarding the interests of investors and international business community.
BENS is a US-based nonpartisan non-profit organisation comprising senior business and industry executives who volunteer their time and expertise to address the national security community's most pressing challenges.
It has over 450 senior business and industry executives, who volunteer their time and expertise. It supports the US government efforts in tackling other prominent challenges such as cyber security and domestic terrorism.
For nearly four decades, BENS has been a trusted partner whose work has built a more effective and efficient military, saved billions in taxpayer dollars, and improved operations that protected the homeland.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)