India & The USIndia & The USStrengthening The Strategic Strengthening The Strategic

PartnershipPartnership

Presentation by FICCI for

USIBC Defense executive Mission

Commonality of Interests Commonality of Interests drives Indo-US Strategic drives Indo-US Strategic

PartnershipPartnership

– Maintaining peace and stability in Asia– Countering international terrorism and counter

insurgency.– Maintaining freedom and security of the sea lanes

in the region and– Preventing proliferation of weapons of mass

destruction With this a new context and impetus to drive the bi-

lateral strategic relationship was created

Diplomatic ExchangesDiplomatic Exchanges

The rise in frequency of diplomatic exchanges are driving the strategic relations

Some High Level VisitsSome High Level Visits

From India Prime Minister

Vajpayee Deputy Prime Minister

Shri Advani Defense minister

George Fernandez National Security

Advisor, Brijesh Mishra

From USA Secretary of State Colin

Powell Defense Secretary

Donald Rumsfeld Commander-in- chief

Pacific Admiral Blair Joint Chiefs of Staff both

former and present Generals Shelton and Meyers

Strategic Initiatives Strategic Initiatives Signing of the Mutual Assistance Treaty Formation of the Defense Policy Group Launching of cyber terrorism,information security and

military to military cooperation FBI office in New Delhi working closely on intelligence

sharing with CBI and IB Joint patrolling of the of the straits of Malacca Joint military exercise in Alaska Joint Naval exercises on the West Coast of India …… are a few examples of the new trend of US – India

relations

Defense Policy GroupDefense Policy Group

Major initiative in taking our strategic relationship forward

It is headed on the Indian side by Secretary Defense, and on the US side by the Under secretary of Defense.

The fifth meeting of the Group was held in the US in August 2003.

Issues of DiscussionIssues of Discussion Takes up fresh proposals to develop defense technology

relationship including : Production, Research and development and Private sector partnerships

Noted the successful trend of Joint military exercises and agreed to upscale the exercises in the near future

- Both US and India are allies and share a strong relationship with Israel. Bush administration has approved for the sale of equipments and missile systems from Israel to India

The setting of the Hi- technology The setting of the Hi- technology Cooperation Group (HTCG) Cooperation Group (HTCG)

The two governments agreed to form the HTCG in 2002 to promote bi-lateral hi-technology trade including trade in dual use goods and technologies.

Main sector focuses include…Main sector focuses include…

DefenseNanotechnologyInformation technologyLife sciences

The key issues being The key issues being discussed in the HTCG forum discussed in the HTCG forum

Market AccessTariff and non tariff barriersStrategic exportsExport controls

The Quartet Areas of The Quartet Areas of CooperationCooperation

Recently PM Vajpayee and President Bush have re-enforced the Hi-tech sharing commitment and announced the new strategic and security policy for cooperation in four priority areas: – Space– Civil Nuclear ties– Trade in high technology– Missile defense cooperation

OPPORTUNITIESOPPORTUNITIES

Sale of Equipment to Indian Armed Forces JV with Indian Companies for both Indian

and third marketsTechnology Transfer Co-producing & sub-contractingTechnology Development and R&D

The Road AheadThe Road Ahead

To address the issues of Concerns identified by both the governments

Implement the recommendation arising out of the discussion forums

Pursue confidence building measurePromote Defense and Military ties through

new partnerships embracing both Govt. and private sector.

WHAT INDIA HAS TO DOWHAT INDIA HAS TO DOAssurances on end-use certification of

sensitive technology.Prevent diversion of goods and technologiesStop transfers and re-transfers within and

outside India.Guarantee physical protection and control

access to such technologies by third parties.Outline laws to deal with suspected

violations.End user verification

And the US To DoAnd the US To Do

The US will review licensing processes for dual use goods. These are currently

restricted because of proliferation concerns.

Open up access to commercially launching US made satellites.

Continued ….Continued ….

Reverse executive orders on hi-tech trade with India.

Influence N-powers to give India access to civilian technology.

Permit the sale of missile defense system to India.

India’s Defense Sector – India’s Defense Sector – recent developmentsrecent developments

Growing role of the private sector in manufacture and supply of defense equipments

Opening up of the defense sector to foreign direct investment (up to 26%) to encourage private sector participation and competition in the sector to meet its demands

The process of commercialization of defense technologies by DRDO is well on the way.

THANK YOUTHANK YOU