Alluding to the “strengthening relationship”, the United States has updated its policy on gas turbine engine technology transfer to India, clearing the decks for expanded American cooperation in the production and design of jet engine components.
Following this decision, communicated to Defence Minister Manohar Parrikar by US Defence Secretary Ashton Carter at their meeting on Thursday, both leaders expected American companies
working with their Indian counterparts to submit transfer requests.
With India having already unveiled several reforms in the Defence sector, notably raising the FDI limit to 49 per cent, and the US advancing its Defence Technology and Trade Initiative (DTTI), Parrikar told the Indian media later that he expects “a boost for Make-in-India” in the defence sector.
“We feel that the recent policy initiatives have opened up immense opportunities for the US companies to set up their manufacturing and produce in India, in collaboration with Indian companies,” Parrikar said, adding he had conveyed this message to industry representatives at a meeting separately organised by the US India Business Council.
A joint statement issued after the talks between Carter and Parrikar at the Pentagon said, “Secretary Carter welcomed Indian initiatives in this regard and hoped that this would pave the way for even greater participation of US companies in the Defence sector.”
The two leaders “focused on ways to maintain the strong momentum of security and defence engagement, including means to further move the Defense Technology and Trade Initiative forward”. The statement also voiced a commitment to identify additional projects for possible co-development and co-production of high technology items that meet the transformational intent of DTTI.
Both leaders commended the “positive discussions” at the Joint Working Group on Aircraft Carrier Technology Cooperation, especially in the area of Aircraft launch and Recovery Equipment, and said they look forward to continued progress at the group’s next meeting in February.
The statement also mentioned that another joint working group dealing with jet engine technology has concluded its Terms of Reference at a meeting in Bengaluru this week.
Carter welcomed India’s participation in the Rim-of-the-Pacific multilateral naval exercise in 2016 as well as participation by the Indian Air Force in the multilateral Red Flag exercise in April-May 2016, and expressed support for greater Air-to-Air interaction in the future. Parrikar welcomed the US announcement to participate in the Indian Navy’s International Fleet Review at Visakhapatnam in February.
Expressing satisfaction at the level of maritime cooperation, they announced their intent to soon complete a memorandum of understanding between the two navies on “white shipping” information sharing. They also welcomed the renewal of the Fuel Exchange Agreement.
During a discussion on regional security issues, they deliberated on the threat posed by ISIS, al Qaeda and its affiliates, lashkar-e-Tayebba, Jaish-e-Mohammad, D Company, the Haqqani Network and other regional terror groups.
They also discussed ways to implement the defense-related aspects of Prime Minister Modi and President
Obama’s Joint Strategic Vision for the Asia-Pacific and Indian Ocean Region.