The fine print in the Indo-US pact, iCET

Source: The post is based on the article “The fine print in the Indo-US pact, iCET” published in the Indian Express on 9th February 2023.

Syllabus: GS 2 – Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.

Relevance: About Initiative for Critical and Emerging Technologies (iCET).

News: Recently, India’s National Security Advisor held talks with the US counterpart on the first dialogue on the Initiative for Critical and Emerging Technologies (iCET) in the US.

What is the Initiative for Critical and Emerging Technologies (iCET)?

About Indo-US “strategic partnership” in the past

Both countries signed a) “Next Steps in Strategic Partnership” in 2004; b) “Defence Framework Agreement” in 2005, c) “Indo-US Civil Nuclear Agreement” in 2008 and d) all four key “foundational agreements”.

Both nations also launched the “Defence Technology and Trade Initiative” in 2012. The US accorded “Major Defence Partner” status to India in 2016, c) “2+2 dialogue” in 2018.

All of Indo-US “strategic partnership” has delivered $22 billion worth of military hardware purchases by India via the foreign military sales programme.

What are the advantages of iCET?

iCET could 1) Be a “game changer” in catalysing Indo-US technology cooperation by persuading the US to lift existing export control restrictions, 2) Encourage the private sector of both countries to cooperate in sensitive sectors, 3) Demonstrate a mutual commitment to investing in advanced technologies, such as quantum computing, AI and space, as well as the critical field of semiconductor design and manufacture.

What are the challenges faced by India’s defence sector?

India’s massive defence industrial complex, including the DRDO, defence public sector undertakings (DPSU) and the (erstwhile) Ordnance Factory Board, are associated with closely the Soviet/Russian arms industry.

India’s previous transfer of technology (ToT) resulted in engineers and designers acquiring only the “knowhow” of methods and procedures required for assembling or building aircraft, aero engines and armoured vehicles from parts or material supplied. Hence, the principles and laws of defence equipments are not completely understood.

What are the challenges faced by iCET?

-The US Arms Export Control Act not only requires clearances from the Departments of State and Defence for ToT but also imposes certain restrictions on the recipient state.

-The iCET aims to make the US a dominant player in India’s defence procurements by replacing Russia. But, this will face stiff resistance from Russia.

-While India is in dire need of technology, the US industry remains firmly focused on trade.

What India needs to do to make iCET comprehensive?

India need to leverage its considerable purchases in the arms, energy, civil aviation, nuclear and other sectors in a holistic manner to extract technology from the US.

Atmanirbharta must remain India’s ultimate aim. Hence, India should break free of Russia’s and US’s defence products and also regain “strategic autonomy” in international affairs.