Countries, and Major Vendors from these Countries, with Govt's nod, wish to create a 'goodwill' in line with their strategic needs and interests through offset offerings. How much a Vendor is willing to provide, may not be in direct relevance to profits he makes in the deal? It is 'entirely the Relationship & Commitment' for long-term Partnership that he has in mind. And in which sphere are these offsets to come is 'jointly agreed' by the concerned Parties, of course keeping in mind the strategic and commercial interests.
It is pertinent for the Offset Negotiators to keep quantum, and area of offsets in focus in all their discussions. Finally it has to be a 'win-win' game!!
Brigadier (Retired) Sukhwindar Sngh
http://www.defenceoffsetsindia.com/
http://www.indiandefenceindustry.com/