This Article is From Apr 07, 2016

Complete Tech Transfer Guarantee Needed Before US Gets To Make In India

Complete Tech Transfer Guarantee Needed Before US Gets To Make In India

US Defence Secretary Ashton Carter will be coming to India for a three-day visit from April 10. (File Photo)

Highlights

  • US Defence Secretary Ashton Carter will be on 3-day visit from April 10
  • India, US will try remove differences in Logistic Supply Agreement
  • This is a basic agreement for better defence ties between India, US
New Delhi: If US Defence manufacturing giants want to Make in India, India will need a guarantee on complete transfer of technology, sources have told NDTV. This will be the focus of discussion when US Defence Secretary Ashton Carter comes to India for a three-day visit from April 10.

The demand for a guarantee on complete transfer of technology can prove tricky. Any transfer of technology in defence sector needs clearance by the US government. But India wants a guarantee so the US Congress will not be able to block transfer of technology once their companies set up shop in India.

"India will want to know what kind of technology the US is willing to share before extending the red-carpet to US-based defence manufacturers," a top official said.

India and US will also take the opportunity to thrash out their differences in the Logistic Supply Agreement - a foundational agreement -- that will allow US and Indian aircraft and warships to use each other's territory to refurbish and refuel.

In view of the US, the LSA is a basic agreement for better defence ties. But the previous UPA government had refused to sign any such agreement, claiming it could hamper Indian operations.

The current version of the LSA is different from the previous one, sources said. This time, it is understood that India could consider giving US access to select facilities - ports and airports - and not a blanket permission to use every facility. India can even offer access only to civilian facilities and not army ones.

Earlier, US and India did work around the End-User Agreement - another foundational agreement -- which required US to inspect all platforms it supplied. "A similar convergence is possible," top sources said.

Under this agreement, instead of allowing yearly physical verification of assets given by the US - like aircraft or warships -- India agreed to show only log books. After the matter was sorted out in 2006, India acquired the USS Trenton - renamed INS Jalaswha - an landing craft used for transporting large number of troops and armoured vehicles for amphibious attacks.

In a shift from the past, Mr Carter will holiday in Goa -- Defence Minister Manohar Parrikar's home state -- for a day following a special invite from the minister.
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