U.S. defence firms want grip on technology in Make-in-India plan:

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