Offsets should be employed to Benefit Property in Chennai
The offset clause with the Rafale purchase will be good news for property in Chennai. Chennai is already among the most industrialized cities in the country with a large manufacturing capacity already built into the city’s existing infrastructure. Offsets from the Rafale deal mean that a significant number of domestic companies will be able to sell products to French companies including Dassault, the owner of the French company which manufactures the Rafale jet. Due to the presence of such offsets, the cost of the Rafale deal to India is closer to 4 Billion Euros rather than the purchase price of 7.8 Billion Euros quoted for the 36 Rafale Jets. Chennai property Such offsets in the deal point to the government’s seriousness in two distinct economic spheres, firstly “make in India” which encourages companies to manufacture goods domestically. Secondly the goal of the government to make India far more self-reliant in the manufacture of defense equipment including eventually jets, tanks, and missiles.
The offsets which are a part of the Rafale deal are great news for Indian manufacturers as many may now be able to prove themselves globally by working on technologies on the cutting edge. Such technologies which will consist of parts for the maintenance of the Rafale shall provide Indian companies a great deal of expertise which some currently lack. By manufacturing components for the Rafale, domestic defense manufacturers shall enjoy the prestige of developing parts for what is among the best fighter jets in the world. The government shall additionally receive help from France in other spheres such as military aerospace research and in development programs for the country as part of the agreed offsets.
Offsets are a credible strategy to encourage domestic manufacturers and to enable domestic companies to acquire greater expertise in manufacturing which many currently lack. As a matter of fact, offsets may be part of a greater plan aimed at making offsets a condition for large procurements from abroad or a part of contracts awarded to foreign companies. Such measures are good for the luxury flats in Chennai as when similar offsets are awarded to foreign construction companies the offset component may help builders in Chennai climb higher up the value chain by gaining greater expertise in construction. New projects in Chennai which are constructed from expertise acquired due to an offset clause may lead to more efficient construction leading to cost savings for real estate developers in Chennai while saving the government money as well. Possibly luxury apartments in Chennai that are constructed with greater foreign help and expertise may be constructed far more rapidly and cheaply than are such luxury flats today. All such offsets would greatly help Indian industry and should, in fact, be made a part of Make in India.
duplex flats in Chennai Most foreign companies are unlikely to become a part of Make in India without some incentives, thus allocating projects to foreign companies with offsets are likely to be a win for both parties. Ongoing residential projects in Chennai may benefit from foreign expertise with regards to frugal interiors which are functional and save space. Such expertise is common in Europe and Japan and should be adopted by builders in Chennai and those in other cities. By offering lucrative contracts to foreign companies with additional offsets, apartments in Chennai meant for 2 may offer twice as much living space and allow sufficient living space for 4 due to an efficient design and functional interiors. The savings to consumers who purchase such homes shall be substantial.