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U.S. defence firms want grip on technology in Make-in-India plan:
Context:
- The issue of technology transfer in arms deals
What are the major defence firms in the fray to join the Make-in-India initiative?
- Lockheed Martin and Boeing are among the companies bidding for contracts.
What are the concerns raised?
- Foreign arms manufacturers concerned over legal liabilities
- Want stronger assurances that they won’t have to part with proprietary technology
- They shouldn’t be held liable for defects in products manufactured in collaboration with local partners in India
- Foreign companies seek a guarantee to allow them to retain control over sensitive technology
What is the urgency from the Indian side?
- India is running short of combat jets.
- Hundreds of aircraft, Soviet-era MiG planes are to retire
- There is a delay in India’s own three-decade-long effort to produce a domestic jet
What is Strategic Partnership model?
- Under the defence ministry’s new Strategic Partnership model under which foreign original equipment manufacturers (OEMs) can hold up to a 49% stake in a joint venture with an Indian private firm which will hold the majority of shares.
What is India’s position on Technology transfer?
- India is insisting on the transfer of technology so that critical military equipment is designed and manufactured in India.
What was the outcome of previous arms deals?
- Without full technology transfer in previous arms deals, India’s state-run defence factories have largely been left to assemble knock-down kits; including for tanks and aircraft
