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NEW DELHI: Prime Minister Narendra Modi on Friday told visiting US Defence Secretary Chuck Hagel that India would like to work with US defence majors on a joint development and co-production model as part of Delhi's efforts to achieve self-reliance and reduce arms import.
Hagel, in New Delhi exactly a week after Secretary of State John Kerry made his trip to India, was told that the Modi government would like to boost defence partnership beyond a buyer-seller relationship, according to official sources.
The issue was discussed at the Strategic Dialogue with Kerry too. The issue of technology transfer was also discussed as the Modi government is focused on manufacturing of defence equipment at home.
"The prime minister underlined the importance of defence relations in the overall strategic partnership between the two countries and indicated his desire to see progress in defence relations, including in defence manufacturing in India, technology transfer in defence, exercises and higher studies in the field of defence," a press release issued by PMO said.
Officials well-versed with the development told ET that Modi's mantra is to attain self-sufficiency in defence manufacturing through joint development and co-production with countries like US, France and other interested partners besides existing cooperation with Russia. "This collaboration helps in transfer of technology for Indian defence firms to adopt modern technologies and will reduce dependence on arms import in long run," a source said.
The Union Cabinet had on Wednesday approved a proposal to raise foreign direct investment in defence to 49 per cent from 26 per cent. En route to India, Hagel said the US was mindful of the sensitivities of India's independence and non-aligned status. However, officials admitted that US defence majors were not still excited about 49 per cent FDI and would prefer a controlling stake for transfer of technology and manufacturing quality equipment.
The Cabinet's decision still may not encourage big US defence firms to seek partnership here, sources hinted. Renewing a 10-year defence framework agreement due to expire next year is high on Hagel's agenda.
Hagel who met Finance Minister Arun Jaitley, External Affairs Minister Sushma Swaraj and NSA Ajit Doval on Friday discussed India's purchase of 22 Apache attack helicopters, 15 Chinook heavy-lift choppers and four P-81 anti-submarine aircraft.
The Apache helicopters would be armed with Hellfire and Stinger missiles. There was also reported discussion about a US offer to jointly develop and produce the next generation of the Javelin missile in India for the Indian market as well as for export.
Jaitley and Hagel agreed to take the Defence Technology and Trade Initiative forward. The contact person from the Indian side will be the Secretary, Department of Defence Production, and the United States will be represented by the Under Secretary for Acquisition, Technology and Licensing at the Pentagon.
Jaitley said, "the development of our own indigenous capabilities is a major objective that guides our present policies. In this direction, we have taken steps to raise FDI cap in the defence sector."
Let us jointly develop arms: PM Narendra Modi to US Defence Secretary Chuck Hagel - The Economic Times
Hagel, in New Delhi exactly a week after Secretary of State John Kerry made his trip to India, was told that the Modi government would like to boost defence partnership beyond a buyer-seller relationship, according to official sources.
The issue was discussed at the Strategic Dialogue with Kerry too. The issue of technology transfer was also discussed as the Modi government is focused on manufacturing of defence equipment at home.
"The prime minister underlined the importance of defence relations in the overall strategic partnership between the two countries and indicated his desire to see progress in defence relations, including in defence manufacturing in India, technology transfer in defence, exercises and higher studies in the field of defence," a press release issued by PMO said.
Officials well-versed with the development told ET that Modi's mantra is to attain self-sufficiency in defence manufacturing through joint development and co-production with countries like US, France and other interested partners besides existing cooperation with Russia. "This collaboration helps in transfer of technology for Indian defence firms to adopt modern technologies and will reduce dependence on arms import in long run," a source said.
The Union Cabinet had on Wednesday approved a proposal to raise foreign direct investment in defence to 49 per cent from 26 per cent. En route to India, Hagel said the US was mindful of the sensitivities of India's independence and non-aligned status. However, officials admitted that US defence majors were not still excited about 49 per cent FDI and would prefer a controlling stake for transfer of technology and manufacturing quality equipment.
The Cabinet's decision still may not encourage big US defence firms to seek partnership here, sources hinted. Renewing a 10-year defence framework agreement due to expire next year is high on Hagel's agenda.
Hagel who met Finance Minister Arun Jaitley, External Affairs Minister Sushma Swaraj and NSA Ajit Doval on Friday discussed India's purchase of 22 Apache attack helicopters, 15 Chinook heavy-lift choppers and four P-81 anti-submarine aircraft.
The Apache helicopters would be armed with Hellfire and Stinger missiles. There was also reported discussion about a US offer to jointly develop and produce the next generation of the Javelin missile in India for the Indian market as well as for export.
Jaitley and Hagel agreed to take the Defence Technology and Trade Initiative forward. The contact person from the Indian side will be the Secretary, Department of Defence Production, and the United States will be represented by the Under Secretary for Acquisition, Technology and Licensing at the Pentagon.
Jaitley said, "the development of our own indigenous capabilities is a major objective that guides our present policies. In this direction, we have taken steps to raise FDI cap in the defence sector."
Let us jointly develop arms: PM Narendra Modi to US Defence Secretary Chuck Hagel - The Economic Times
