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09 Aug 07. The Indian Central government’s offset policy is expected to bring aviation offshoring deals worth over $10bn to the country in the next couple of years. The government has already committed to acquire commercial and defence aviation products, aircraft, components, services and equipment worth $40bn, with an offset component ranging from 30% to 50%. Under the offset policy, the government holds back a minimum 30% of the invoice value of any civil or defence aviation related purchase over a mutually agreed period of time, till the seller outsources services equivalent to that of the offset share. The policy is aimed at helping to build an eco-system to support the growth and upkeep of the industry. Some of the deals cleared include: 68 aircraft from Boeing for Air-India at $6.7bn (with an offset share of 30%), 43 aircraft from Airbus for Indian at $2.7bn (40%), 200 helicopters from Eurocopter for defence at around $20bn (50%), and 126 MRCA (multi-role combat aircraft) from multiple vendors for defence at $10bn (50%). (Source: Google)

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