Indo-US new defence framework to ease tech transfer

The new deal that would replace the old one, is expected to make the process easier for American firms to share their military technology with India, and also actively participate in manufacturing of weapon systems jointly with India

By Sai Nikesh D

India and the United States, as a part of defence cooperation, have finalized a new framework agreement which would be a replacement to the existing deal, that was supposed to expire in June 2015.

The new defence framework is expected to facilitate synchronization between the armed forces of the two countries, along with creating a larger scope for technology transfer in defence between the two economies.

According to the defence reports, the deal will make the process easier for American firms to share their military technology with India and also actively participate in manufacturing of weapon systems jointly with India.

Meanwhile, the Union Defence Minister, Manohar Parrikar, said that a dialogue has been established between India and the US for mutual development and production of unique and exceptional defence technologies, under the Defence Technology and Trade Initiative (DTTI).

Responding to a question, the Minister was also quoted to have said that presently there is no proposal to set up a new laboratory of Defence Research and Development Organisation (DRDO) in the country.

However, the Hindustan Aeronautics Limited (HAL) has proposed to set up a production unit in Tumkur district of Karnataka, the Minister said, while also informing about the supposed units at Ibrahimpatnam in Telangana and another unit in Amravati, Maharashtra, by Bharat Dynamics Ltd.

In another statement, the Defence Minister welcomed 100% Foreign Direct Investment in areas where there is a need for critical defence technology.

Pitching for Make in India at the India Today Conclave 2015, in New Delhi on Friday, the Minister expressed his readiness to give approval to any company for 100% investment in a venture, if the company has enough technology and interest to make (for example fighter planes) in India.

On the required needs by armed forces, Parrikar and Former Army chief Gen Bikram Singh sought the appointment of a Chief of Defence Staff in order to deal with issues like integration, transparency and on a major view, in overcoming challenges as a way towards modernization of defence forces.

 

 This article was published in The Dollar Business on March 14, 2015

 

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