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US defence firms want tech control in India ventures

TheBlackCoat

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This why I like President Trump. Finally, a President who is working for the interests of the US.


http://www.straitstimes.com/asia/south-asia/us-defence-firms-want-tech-control-in-india-ventures

US defence firms want tech control in India ventures

A file photo of an F-16 from the US military in action during a joint India-US air force exercise in India. Lockheed Martin has offered to move its F-16 production line to India from Texas, and make it the sole factory worldwide if New Delhi orders at least 100 single-engine fighters.PHOTO: REUTERS
PUBLISHED
SEP 20, 2017, 5:00 AM SGT
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Business lobby seeks stronger assurances from Delhi over strategic partnership deals
NEW DELHI • US defence firms offering to set up production lines in India to win deals worth billions of dollars want stronger assurances that they will not have to part with proprietary technology, according to a business lobby group's letter to India's Defence Minister.

These companies are also saying they should not be held liable for defects in products made in collaboration with local partners under Prime Minister Narendra Modi's Make in India drive to build a military industrial base.

Lockheed Martin and Boeing are bidding to supply combat jets to India's military, which is running short of hundreds of aircraft as it retires Soviet-era MiG planes, and its own 30-year effort to produce a domestic jet is hobbled by delays.

Lockheed has offered to move its F-16 production line to India from Fort Worth, Texas, and make it the sole factory worldwide if New Delhi orders at least 100 single-engine fighters.

The US firm has picked Tata Advanced Systems as its local partner under the Defence Ministry's new strategic partnership model, under which foreign original equipment manufacturers can hold up to a 49 per cent stake in a joint venture with an Indian private firm, which will hold the majority of shares.

The US-India Business Council wrote to India's Defence Minister on Aug 3 seeking a guarantee that US firms would retain control over sensitive technology, even as joint venture junior partners.

"Control of proprietary technologies is a major consideration for all companies exploring public and private defence partnerships," said the lobby, which represents 400 firms in the United States.

Technology transfer is at the heart of Mr Modi's drive to build a domestic industrial base and reduce a reliance on imports that has made India the world's biggest arms importer in recent years.

Without full tech transfer in previous arms deals, India's mainly state-run defence factories have largely been left to assemble knock-down kits even for tanks and aircraft produced under licence from the foreign maker.

India's Defence Ministry offered no response to the concerns expressed by the business group on the strategic partnership model, which will also apply to building submarines and helicopters as part of a US$150 billion (S$202 billion) modernisation drive.

But Mr Mukesh Aghi, president of the US-India Strategic Partnership Forum, said that despite the starting problems, defence manufacturing looked set to be a breakthrough area in ties between India and the US. "It's the next big thing. There is strong support from the Trump administration to take this forward."

REUTERS

A version of this article appeared in the print edition of The Straits Times on September 20, 2017, with the headline 'US defence firms want tech control in India ventures'. Print Edition | Subscribe


http://www.defenseworld.net/news/20...h_Under__Make_in_India__Projects#.WcOXhoxSyUk


US Firms Unwilling to Transfer Critical Tech Under 'Make-in-India' Projects

Our Bureau
02:43 PM, September 20, 2017
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US Firms Unwilling to Transfer Critical Tech Under 'Make-in-India' Projects
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The US India Business Council (USIBC), an American business advocacy group, has written a letter to India’s defense minister stating that the US defense firms offering to set up production line in India are unwilling to part with sensitive aircraft technology – even as joint venture junior partners.

“Control of proprietary technologies is a major consideration for all companies exploring public and private defence partnerships,” the business lobby, which represents 400 firms, said in the August 3 letter, reviewed by Reuters and previously unreported.

“To allow foreign OEMs to provide the most advanced technologies, the partnership arrangement between an Indian owned ‘strategic partner’ company and a foreign OEM needs to provide an opportunity for the foreign OEM to retain control over its proprietary technology,” it said, noting this wasn’t explicit in the policy document.

The USIBC opposed a clause in the new rules that held foreign firms jointly responsible for the quality of the platforms provided to the military, saying legal liability is a significant factor in business decisions.

“We recommend the MoD (Ministry of Defence) affirm that foreign OEMs will not be liable for defects outside their company’s control,” the USIBC said.

But an official, referring to sensitive technology, said the government has made clear in the past that foreign firms can be allowed to increase their stake beyond 49 percent if the technology they bring in is state-of-the art.

India’s defence ministry offered no response to the concerns expressed by the trade lobbying group on the strategic partnership model, which will also apply to building submarines and helicopters as part of a $150 billion modernisation drive.

US Aerospace giants Lockheed Martin and Boeing are both bidding to supply combat jets to India’s military, which is running short of hundreds of aircraft as it retires Soviet-era MiG planes.

Lockheed has offered to shift its F-16 production line to India from Fort Worth, Texas, and make it the sole factory worldwide if India orders at least 100 single-engine fighters.
 
This why I like President Trump. Finally, a President who is working for the interests of the US.

The same can be said of PM Modi, a Prime Minister who is working for the interests of India. He is adamant on Make in India

As on the deal, whoever provides the maximize ToT will get the deal to build 200 fighter jets in India. Best of luck to SAAB and LM, the better ToT provider may win the deal.
 
The same can be said of PM Modi, a Prime Minister who is working for the interests of India. He is adamant on Make in India

As on the deal, whoever provides the maximize ToT will get the deal to build 200 fighter jets in India. Best of luck to SAAB and LM, the better ToT provider may win the deal.

US still has a veto on Gripen's engine.
 
US still has a veto on Gripen's engine.

US would not do that...India - US relations are at the greatest point. Yes, US could say no to ToT after an extent because that is business. But as such giving engines to India wouldn't be a problem. Tejas, India's indigenous fighter planes, are run on GE engines.
 
US would not do that...India - US relations are at the greatest point. Yes, US could say no to ToT after an extent because that is business. But as such giving engines to India wouldn't be a problem. Tejas, India's indigenous fighter planes, are run on GE engines.

We would be happy to sell the engines to India but with the US fighters than supporting the competition.
 
US Firms Unwilling to Transfer Critical Tech Under 'Make-in-India' Projects

I don't think that ship is going to harbour here any longer. This isn't 60s and 70s where it is a seller's market. Defence sector has emerged as a major buyer's market and if this is the attitude that US arms makers have, then they will only lose contracts going forward in the future.

While IP is important, acquisition through purchase of IP is a perfectly legal condition especially for large orders.
 
I don't think that ship is going to harbour here any longer. This isn't 60s and 70s where it is a seller's market. Defence sector has emerged as a major buyer's market and if this is the attitude that US arms makers have, then they will only lose contracts going forward in the future.

While IP is important, acquisition through purchase of IP is a perfectly legal condition especially for large orders.

Selling weapons - Yes

Selling IP - No

No government would allow selling the critical IP.
 
as my little brain works no one will hand over years of hard working tech for sake of money .
 

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