India–U.S. Defence Technology Ties — Big Ambitions, Limited Delivery

(Source – The Hindu, Editorial Page no. – 8)

Topic: GS 2 (India–US Relations, Bilateral Agreements, Strategic Partnerships) · GS 3 (Defence Technology, Defence Manufacturing, Atmanirbhar Bharat, Science & Technology)

Context

• India and the United States have significantly expanded defence cooperation over the past two decades.
• However, despite ambitious initiatives like DTTI, iCET and INDUS-X, meaningful technology transfer, co-development and co-production remain limited.
• The recent delay in the GE F414 fighter engine programme once again highlights the gap between strategic intent and industrial outcomes.

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Issue in Brief

• India has emerged as one of the largest buyers of U.S. defence equipment.
• Yet the partnership has remained procurement-centric rather than technology-centric.
• Export-control restrictions, intellectual property concerns and differing strategic priorities continue to constrain genuine defence industrial collaboration.

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Static Background

• Defence cooperation accelerated after the India–US Civil Nuclear Agreement (2005–08).
• Major defence agreements include:
  • LEMOA (2016)
  • COMCASA (2018)
  • BECA (2020)
• India has purchased over US$22 billion worth of American defence equipment since 2002.
• Important acquisitions include:
  • Apache helicopters
  • Chinook helicopters
  • C-17 Globemaster
  • C-130J Super Hercules
  • P-8I Maritime Patrol Aircraft
  • M777 Ultra-Light Howitzers

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Key Dimensions

GE F414 Fighter Engine Programme

• Intended to become the flagship example of India-US defence co-production.
• Hindustan Aeronautics Limited (HAL) is negotiating licensed manufacturing for:
  • Tejas Mk-II
  • Future fighter programmes.
• Negotiations remain delayed because of:
  • Intellectual Property (IP) issues.
  • Technology Transfer (ToT) disagreements.
  • Export-control restrictions.
  • Rising project costs.
• Estimated engine cost has increased significantly, affecting commercial viability.

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Defence Technology and Trade Initiative (DTTI)

• Launched in 2012.
• Objective:
  • Co-development.
  • Co-production.
  • Technology collaboration.
• Despite multiple meetings, DTTI has produced very few major defence projects.

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Initiative on Critical and Emerging Technologies (iCET)

• Launched in 2022.
• Expands cooperation beyond defence into:
  • Artificial Intelligence
  • Quantum Computing
  • Semiconductors
  • Biotechnology
  • Telecommunications
  • Defence Innovation
• GE F414 became the flagship defence project under iCET but remains unresolved.

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INDUS-X

• Launched in 2023.
• Objective:
  • Connect defence startups.
  • Academia.
  • Private industry.
  • Investors.
• Focus:
  • Defence innovation ecosystem.
  • Startup collaboration.
• Major industrial outcomes have yet to emerge.

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Other Pending Defence Projects

Several proposed collaborations remain unresolved:

• Javelin Anti-Tank Guided Missile co-production.
• General Dynamics Infantry Combat Vehicle.
• GE engine technology transfer.
• Indigenous fighter engine cooperation.

Many projects remain under prolonged negotiations without implementation.

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MQ-9B Drone Procurement

India agreed to procure 31 MQ-9B SkyGuardian/SeaGuardian drones.

However,

• largely remains a procurement deal.
• Expected:
  • Local assembly.
  • Indigenous maintenance ecosystem.
  • Domestic MRO capability.
• These industrial benefits have yet to materialise.

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Technology Transfer Divide

India’s Perspective

India seeks:

• Indigenous manufacturing.
• Technology absorption.
• Intellectual Property access.
• Long-term defence self-reliance.
• Reduced import dependence.

Technology partnerships are viewed as an instrument of Atmanirbhar Bharat.

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U.S. Perspective

The United States views advanced defence technologies as strategic assets.

Technology transfer remains constrained by:

• ITAR (International Traffic in Arms Regulations).
• Export-control laws.
• National security considerations.
• Protection of intellectual property.

Consequently, political goodwill often fails to translate into industrial cooperation.

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Reciprocal Defence Procurement Agreement (RDPA)

The proposed RDPA aims to:

• Provide reciprocal access to defence procurement markets.
• Improve defence trade.
• Enhance industrial collaboration.

However,

Concerns include:

• Unequal competition between Indian and U.S. defence firms.
• Risk to India’s emerging defence manufacturing ecosystem.
• Limited guarantees of meaningful technology transfer.

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Critical Analysis

Strengths

• India-US defence relationship has expanded substantially.
• High interoperability through military exercises.
• Strong maritime cooperation in the Indo-Pacific.
• Growing collaboration in emerging technologies.
• Strategic convergence on Indo-Pacific security.
• Increased private-sector engagement via INDUS-X.

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Structural Challenges

• Procurement dominates over co-development.
• Technology transfer remains highly restricted.
• Export-control regulations delay implementation.
• Intellectual property disputes slow negotiations.
• Industrial expectations differ significantly.
• Cost escalation reduces project viability.
• Defence collaboration remains announcement-heavy but delivery-light.

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Way Forward

• Shift from buyer-seller relationship to genuine co-development.
• Create predictable technology-transfer frameworks.
• Encourage joint R&D and shared intellectual property.
• Expand private-sector participation on both sides.
• Fast-track implementation of existing initiatives before launching new ones.
• Promote joint manufacturing for third-country exports.
• Build long-term industrial partnerships rather than one-time procurement contracts.

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