Policy Design for Offset Programmes in Public Procurement: A Comparative Analysis of India's Defence Offset Guidelines with Canada's Industrial and Regional Benefits Policy

Abstract

This short policy paper attempts a comparative review of India's Defence Offset Guidelines with Canada's Industrial and Regional Benefits (IRB) Programme. Important aspects compared across the two regulatory regimes include, inter alia, causality tests for determination of industrial benefits, imposition of offset requirements on both domestic and foreign bidders, blue addition requirements for grant of offset credits, and use of offsets for balanced regional development; with a view to use insights and lessons from the Canadian IRB Programme for improving the defence offsets framework in India.

Keywords: India, Defence Offsets, Industrial Participation, Defence Acquisition

JEL Classification: K12, K23