India’s Procurement Policy Remains A Challenge

Boeing has expressed in no uncertain terms to AIN the pain of having to honor offsets in India and the challenge of managing a constantly shifting policy landscape. The growing Indian defense budget ($44 billion by 2016) may be attractive but it would seem that the trials and tribulations being faced by initial winners such as Boeing could be a significant downside for the foreseeable future.

“The biggest challenge is the defense procurement policy [DPP],” Christopher Chadwick, president of Boeing Military Aircraft, told AIN. This is not just a Boeing challenge but an industry issue…The intentions of the Indian government that the Indian industry should grow, we support,…but the speed [of acquisition] cannot absorb the offsets.”

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