Having agreed to renew the framework agreement for US-India defence cooperation by 10 more years during Prime Minister Narendra Modi’s recent visit, a senior Pentagon official announced on Thursday that two pending technology transfer licences have now been cleared. He, however, did not go into details.
Commenting that “a new wind is blowing in India”, US Under Secretary of Defence for Acquisition, Technology and logistics Frank Kendall also informed that $20 million has been set apart for the pursuit of strategic cooperative science and technology projects with India.
Kendall’s remarks came at the annual leadership summit of the US India Business Council, which reaffirmed the pledge by its members in the wake of the Modi visit to invest as much as $41 billion in India.
“There’s never been a better nor a more vital time for the US and India to work together than right now. let us seize a defining moment in a defining partnership,” USIBC Chairman and President/CEO of MasterCard Ajay Banga said, adding: “That admiration for India is today being matched by a renewed optimism about India in the US and around the world.”
Although no specific announcements were made in the defence sector during the PM’s visit, save for the plan to renew the framework agreement for 10 more years beginning 2015, the two sides have been engaged in serious negotiations over specific projects and terms for sale of military hardware under the Defence Trade and Technology Initiative.
Effusive over his India visit along with Defence Secretary Chuck Hagel preparatory to the Modi-Obama summit meeting, Kendall said: “It was very clear to Secretary Hagel and me that a new wind was blowing in India — the monsoon had changed direction and intensity. Everyone we met, at all levels, was highly interested in opportunities for cooperation.” And now, it’s time to turn the good intentions into tangible results, he added.
US Commerce Secretary Penny Pritzker, in her remarks at the event, reflecting on the goal of expanding bilateral trade five-fold to $500 billion, said it would be “tough work”, stressing there must be a willingness to “get down to specifics” in order to make progress.
laying out the USIBC wish list, Banga, even while welcoming Modi’s commitment to getting the Goods and Services Tax (GST) done and the announcements raising the caps on FDI in railways, defence and insurance, called for passage of the FDI Insurance Bill.
“Raising FDI for defence further would help and could see even greater access to technology transfers. Raising FDI in e-commerce and deepening financial markets would help. FDI is foundational to the Government’s agenda and to what India needs – committed, long-term capital to fuel growth, jobs and infrastructure. Getting labour law reform done would help tremendously as well,” Banga said.
In line with the Prime Minister’s push on creation of “Smart Cities”, the USIBC has announced that it would put together a special conclave at the US-India Technology Summit to be held in New Delhi next month.
Executives from firms like IBM and Cisco will be having discussions with the Ministry of Urban Development and several government departments on this project.