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India’s national aim has been to promote growth of Indian defence industry, India today has the distinction of being the world’s biggest arms importer buying 12 per cent of the global total as per Stockholm International Peace Research Institute (SIPRI). introduction of new technologies through direct transfers, promote indigenisation and to achieve the same, had put in place a robust offsets mechanism. The ‘Offsets’ policy is to ensure that for every dollar that goes to a foreign arms supplier, 30 to 50 per cent of the same will be re-invested in India for a defence related investment or activity.

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