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Make-in-India: U.S Defence firms want to retain control on proprietary technology

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Make-in-India: U.S Defence firms want to retain control on proprietary technology

By Aditya Kalra and Sanjeev Miglani

US-India Business Council says foreign partners in defence production can’t be held liable for defects in products manufactured in collaboration

New Delhi: U.S. defence firms offering to set up production lines in India to win deals worth billions of dollars want stronger assurances they won’t have to part with proprietary technology, according to a business lobby group’s letter to India’s defence minister.

The letter had been sent a month before Prime Minister Narendra Modi reshuffled his council of ministers and was thus addressed to Arun Jaitley who then held additional charge of the defence portfolio.

These companies are also saying they shouldn’t be held liable for defects in products manufactured in collaboration with local partners under PM Modi’s ‘Make-in-India’ drive to build a military industrial base.

Lockheed Martin and Boeing are both bidding to supply combat jets to India’s military, which is running short of hundreds of aircraft as it retires Soviet-era MiG planes, and its own three-decade-long effort to produce a domestic jet is hobbled by delays. Lockheed has offered to shift its F-16 production line to India from Fort Worth, Texas, and make it the sole factory worldwide if India orders at least 100 single-engine fighters.

The U.S. firm has picked Tata Advanced Systems as its local partner under the defence ministry’s new Strategic Partnership model under which foreign original equipment manufacturers (OEMs) can hold up to a 49 percent stake in a joint venture with an Indian private firm which will hold the majority of shares.

The US-India Business Council (USIBC) wrote to India’s defence minister last month seeking a guarantee that U.S firms would retain control over sensitive technology – even as joint venture junior partners. “Control of proprietary technologies is a major consideration for all companies exploring public and private defence partnerships,” the business lobby, which represents 400 firms, said in the Aug. 3 letter, reviewed by Reuters and previously unreported.

“To allow foreign OEMs to provide the most advanced technologies, the partnership arrangement between an Indian owned ‘strategic partner’ company and a foreign OEM needs to provide an opportunity for the foreign OEM to retain control over its proprietary technology,” it said, noting this wasn’t explicit in the policy document.

TECHNOLOGY TRANSFER

Technology transfer is at the heart of Modi’s drive to build a domestic industrial base and cut reliance on imports that has made India the world’s biggest arms importer in recent years.

Without full tech transfer in previous arms deals, India’s mainly state-run defence factories have largely been left to assemble knock-down kits even for tanks and aircraft produced under licence from the foreign maker. Modi’s advisers have vowed to change that, insisting on transfer of technology so that critical military equipment are designed and manufactured in India.

Benjamin Schwartz, USIBC’s director for defence and aerospace, said the new Indian policy offered a roadmap for establishing partnerships between U.S and Indian companies, but it raised some questions for the firms. He said he was not in a position to name those companies concerned by the Indian policy, but there was a “general desire to see increased clarity” on several aspects, including the control of proprietary technologies.

QUALITY ISSUES

The USIBC also opposed a clause in the new rules that held foreign firms jointly responsible for the quality of the platforms provided to the military, saying legal liability is a significant factor in business decisions.

“We recommend the MoD (Ministry of Defence) affirm that foreign OEMs will not be liable for defects outside their company’s control,” the USIBC said.

Lockheed did not respond to a request for comment. Boeing, which is bidding for a separate contract to sell its F/A-18 Super Hornets for India’s aircraft carrier fleet, declined to comment on the USIBC letter, but the company’s India president, Pratyush Kumar, said there were concerns about Indian private firms’ lack of experience in the aerospace sector.

Only state-run Hindustan Aeronautics Ltd had made planes under licence, while some private players were starting from scratch, having never built even an aircraft component. Kumar said he could not find a single example worldwide of a private enterprise with limited experience building out a plane under transfer of technology.

“Look at Turkey, look at Japan, look at Brazil – look at multiple countries. In all cases there is a fine balancing act of co-opting the capabilities of both public and private enterprise,” Kumar said.

India’s defence ministry offered no response to the concerns expressed by the trade lobbying group on the strategic partnership model, which will also apply to building submarines and helicopters as part of a $150 billion modernisation drive. But an official, referring to sensitive technology, said the government has made clear in the past that foreign firms can be allowed to increase their stake beyond 49 percent if the technology they bring in is state-of-the art.

“It can be done on a case-to-case basis,” the official said. Mukesh Aghi, president of the US-India Strategic Partnership Forum, said that despite the starting problems, defence manufacturing looked set to be a breakthrough area in ties between India and the United States. “It’s the next big thing. There is strong support from the (U.S President Donald) Trump administration to take this forward.”

– With Reuters

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Anything less than US control of Greenland unacceptable, says Trump

Donald Trump has said American control of Greenland is vital for national security and missile defence, reigniting debate over the Arctic island’s strategic importance.

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US president Donald Trump has said that American control over Greenland is essential for the United States’ national security, describing it as “vital” for a planned air and missile defence system known as the Golden Dome.

In a social media post on Wednesday, Trump claimed the United States “needs Greenland for the purpose of National Security” and asserted that the Arctic island plays a key role in the proposed defence architecture. He further said that NATO would become “far more formidable and effective” if Greenland were under US control, adding that “anything less than that is unacceptable.”

Comments ahead of US-Denmark talks

Trump’s remarks came just hours before senior Danish and Greenlandic officials were scheduled to hold talks at the White House with US Vice President JD Vance and Secretary of State Marco Rubio. The discussions are focused on Greenland and broader security issues in the Arctic region.

Responding to US concerns, Denmark’s defence minister Troels Lund Poulsen said the country was increasing its military presence in Greenland. He also noted that Copenhagen was in discussions with allies regarding a stronger NATO footprint in the Arctic.

NATO role and strategic concerns

Trump said NATO “should be leading the way” in building the proposed multi-layer missile defence system. He warned that if the alliance did not act, rival powers could step in, stating that Russia or China might otherwise take the lead.

The US president has repeatedly spoken about taking control of Greenland, a strategically located and sparsely populated island that is an autonomous territory within the Kingdom of Denmark. His renewed comments underline continued US interest in the Arctic’s strategic importance amid rising global security competition.

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Iran set to execute anti-Khamenei protester as Trump warns of strong US action

Iran is preparing to execute a protester linked to anti-regime demonstrations as US President Donald Trump warns of strong action amid a deadly crackdown.

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Iran is reportedly preparing to execute an anti-government protester on Wednesday, triggering sharp warnings from US President Donald Trump, who said Washington would take “very strong action” if the hanging goes ahead. The development comes amid a sweeping crackdown on nationwide protests that rights groups say has killed more than 2,000 people.

According to human rights groups, 26-year-old Erfan Soltani, arrested last week during protests in Karaj near Tehran, has been sentenced to death and faces execution without a proper trial. Iranian authorities have not publicly detailed the charges or judicial process in his case.

Trump urges Iranians to keep protesting

Trump has publicly encouraged Iranians to continue protesting, saying “help is on its way”, while warning Tehran against executing demonstrators. Speaking to media, the US president said the United States would respond forcefully if Iran began hanging protesters arrested during the unrest.

Earlier, Trump posted messages urging people in Iran to continue demonstrations and said he had cancelled meetings with Iranian officials until the killing of protesters stops. He did not specify what assistance the US might provide or which meetings had been cancelled.

Iranian prosecutors have reportedly threatened capital punishment under charges of “moharebeh”, or waging war against God, for some detainees linked to the protests.

Rising death toll and reports from morgues

Rights groups say the crackdown has been one of the deadliest in recent years. According to activist organisations, the death toll has crossed 2,500, including civilians and members of the security forces. Iranian officials, however, have blamed what they described as “terrorists” for the deaths and have not provided a clear breakdown.

Videos circulating on social media show bodies lined up at the Kahrizak mortuary near Tehran, wrapped in black bags, as families search for missing relatives. Authorities have declared national mourning for security personnel killed during the unrest and announced mass funeral ceremonies in the capital.

Internet blackout and Starlink access

Iran has imposed a widespread internet blackout, now extending beyond five days, limiting communication and information flow. Amid the restrictions, SpaceX has reportedly waived subscription fees for its Starlink satellite service in Iran, allowing users with receivers to access the internet without payment, according to groups working to restore connectivity.

Some international phone links were partially restored, but reports indicate services remain unstable and limited.

Political tensions and international reaction

Iranian leaders have insisted that control has been restored following days of protests described as one of the biggest challenges to the clerical leadership since the 1979 revolution. Supreme Leader Ayatollah Ali Khamenei has hailed pro-government rallies as evidence that the protest movement has failed.

Senior Iranian officials have accused Trump and Israeli leadership of responsibility for violence in Iran. Meanwhile, Western leaders have condemned the use of force against protesters, with some warning that sustained repression could further destabilise the country.

Analysts note that while the protests represent a serious challenge to Iran’s leadership, the government retains powerful security and enforcement mechanisms, making the outcome uncertain.

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Nearly 2,000 killed as Iran acknowledges high death toll in nationwide protests

Iran has for the first time acknowledged that nearly 2,000 people were killed during nationwide protests sparked by economic distress, as authorities continue a strict security crackdown.

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Iran has acknowledged for the first time that close to 2,000 people, including members of the security forces, have been killed during two weeks of widespread protests across the country, according to an Iranian official.

The official said the deaths occurred amid violent clashes during nationwide unrest that erupted over worsening economic conditions. The figure marks the highest acknowledged toll so far from the current wave of demonstrations, which has posed one of the most serious internal challenges to Iran’s leadership in recent years.

Official blames “terrorists” for violence

According to the official, those described as “terrorists” were responsible for the deaths of both protesters and security personnel. However, no detailed breakdown was provided regarding how many civilians or security forces were killed.

Iran’s clerical leadership has accused the United States and Israel of instigating unrest in the country, alleging that external actors exploited public anger and escalated the demonstrations into violent confrontations.

Dual approach to protests

Authorities have attempted to balance their response by distinguishing between what they describe as legitimate protests over economic hardship and acts of violence. While acknowledging public frustration over living conditions, the government has simultaneously enforced a strict security crackdown to contain the unrest.

The protests are reported to be the most significant challenge to the Iranian establishment in at least three years and come at a time of heightened international pressure following military strikes by the US and Israel last year.

Rights groups cite arrests and casualties

Human rights organisations had earlier reported that hundreds of people were killed during the protests and said thousands were detained as security forces moved to suppress demonstrations across several cities.

The flow of information from inside Iran has been severely restricted due to communications curbs, including recent internet blackouts, making independent verification difficult.

Clashes captured on video

Despite restrictions, multiple videos circulating online have shown intense nighttime clashes between demonstrators and security forces. Some of these visuals, verified by media, depict gunfire, burning vehicles, and damage to buildings, highlighting the scale of violence during the unrest.

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