3) Critically examine whether the offset guidelines in Defence Procurement Policy 2016 help in development of an indigenous defence sector?(250 words)

Topic – Government policies and interventions for development in various sectors and issues arising out of their design and implementation

3) Critically examine whether the offset guidelines in Defence Procurement Policy 2016 help in development of an indigenous defence sector?(250 words)

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Why this question

The article delves deep into the issues involved in Offset guidelines in Defence Procurement Policy 2016. The issue has dominated headlines due to the controversy associated with Rafale deal and hence preparing a critical examination of the offset policy would serve us in good stead while preparing for GS2.

Key demand of the question

The question expects us to explain the offset guidelines of Defence Procurement Policy. Thereafter, we need to bring out how the guidelines help in promoting indigenous manufacturing of defence goods and also the issues in these guidelines. Finally, we need to provide a fair and balanced conclusion on the offset guidelines and its merit and discuss the way forward.

Directive word

Critically examine – When you are asked to examine, you have to probe deeper into the topic,  get into details, and find out the causes or implications if any . When ‘critically’ is suffixed or prefixed to a directive, all you need to do is look at the good and bad of something and give a fair judgement.

Structure of the answer

Introduction – Explain the Rafale controversy and how it’s related to the offset guidelines. Explain objective of these guidelines.

Body

• Explain what the offset guidelines are – offsets are a portion of a contracted price with a foreign supplier that must be re-invested in the Indian defence sector, or against which the government can purchase technology etc
• Discuss how these guidelines aim to ensure that procurement is undertaken in a manner that takes India closer to the goal of developing a world-class domestic defence and aerospace industry.
• Discuss the issues with these guidelines as discussed in the article

Conclusion – Give a fair and balanced opinion on the issue and discuss way forward.