Sunday, June 18, 2023

US-India Defense Deal: A Major Shift in Policy and Implications for the Future

 The upcoming state visit of Indian Prime Minister Narendra Modi to the United States is expected to focus on a defense deal, with reports suggesting that the US and India may soon sign an agreement related to jet engines. The deal involves two parties: General Electric, a US multinational, and Hindustan Aeronauticals Limited (HAL), an Indian defense firm. Under the deal, General Electric would transfer technology to HAL, which would then produce the engines in India. The engines could be used on the homegrown Pages jet and would help India replace its aging fleet of jets.


For India, the deal represents a major boost to its domestic defense industry, creating jobs and giving access to cutting-edge technology. India has historically relied on Russian arms for much of its equipment, but it has been trying to reduce its dependence on Russia in recent years. This deal with the US would represent a significant shift in India's defense procurement strategy.


For the US, the deal represents a chance to deepen its relationship with India and reduce India's dependence on Russian arms. The US has been keen to share critical technology with India, but in the past, it has refused to do so, citing concerns over national security.


However, this deal represents a major shift in policy for both countries. The US has traditionally been reluctant to share critical technology with India, but officials now appear confident that all the necessary hurdles can be cleared.


National Security Advisor Jake Sullivan recently visited India and spoke about removing obstacles to technology transfer, specifically in defense trade and high-tech trade. The US wants to remove the obstacles that have stood in the way of better collaboration among scientists and researchers from the two countries.


The US and other Western countries are keen to deepen their relationships with India because they see India as playing an important role in containing China and isolating Russia. In recent years, India has been steadily reducing its reliance on Russian arms, and the conflict in Ukraine has only accelerated this process.


While defense deals with the US and other countries are a big help to India, the ultimate goal should be self-reliance in critical technologies. Until then, such deals will boost India's domestic production and help it prepare for the challenges posed by China and other geopolitical rivals.


Overall, the deal represents a significant shift in policy for both the US and India, and its implications for the future of defense procurement in India are significant. As India seeks to deepen its relationships with the US and other Western powers, it must also focus on building its own capacity and developing its own critical technologies. By doing so, India can become more self-reliant and better prepared to face the challenges of the 21st century.

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