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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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Bondi Beach shooting during Jewish festival leaves at least 15 dead

Australia’s Bondi Beach was rocked by the deadliest shooting in decades as a father and son opened fire during a Jewish festival, killing at least 15 people.

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Bondi shooting Australia

At least 15 people were killed and dozens injured after a mass shooting at Sydney’s iconic Bondi Beach during a Jewish celebration, in what authorities have described as the deadliest gun attack in Australia in almost 30 years.

Police on Monday confirmed that the two attackers were a father and his son. The older man, identified as 50-year-old Sajid Akram, was shot dead by police at the scene, while his 24-year-old son Naveed Akram was injured and is undergoing treatment at a hospital.

The attack occurred during the “Chanukah by the Sea” event, held to mark the beginning of the eight-day Hanukkah festival. Around 1,000 people were attending the gathering in a small park near the beach when gunfire erupted, triggering panic among crowds enjoying a busy summer evening.

What happened at bondi beach

According to authorities, emergency services received the first calls about shots being fired around 6:45 pm. Witnesses said the attack lasted roughly 10 minutes, with people running across the sand and into nearby streets to escape the gunfire.

Videos from the scene showed two men firing long guns from a footbridge leading to the beach. Police have not officially confirmed the exact weapons used, though footage suggested a bolt-action rifle and a shotgun.

In one widely shared clip, a bystander was seen tackling and disarming one of the gunmen. The man was later praised by state leadership as a “genuine hero.” A public fundraising effort launched for him had raised over A$200,000 by Monday morning.

Attackers and investigation

Police said one of the attackers was known to security agencies, though there was no prior indication of a planned assault. Authorities later confirmed they were confident only two people were involved.

The younger attacker is an Australian-born citizen. Officials said the father had arrived in Australia in 1998 on a student visa, later transitioning to other residency permits. Investigators also searched the family’s home in Bonnyrigg, in western Sydney, where a heavy police presence remained through Monday.

Victims and community impact

Those killed ranged in age from 10 to 87 years. At least 42 others were hospitalised, several of them in critical condition. An Orthodox Jewish organisation confirmed that one of the victims was Rabbi Eli Schlanger, an assistant rabbi and one of the organisers of the event.

Eyewitnesses described scenes of chaos and fear. A young lifesaver present at the beach said seeing injured people, including children, was deeply distressing and unlike anything he had experienced before.

Community leaders urged unity and calm in the aftermath, stressing the importance of supporting those affected rather than allowing anger to divide communities.

Leaders condemn attack

Australian Prime Minister Anthony Albanese visited Bondi Beach on Monday to pay tribute to the victims, calling the shooting a “dark moment for our nation.” He described the incident as an act of antisemitism and terrorism, assuring the Jewish community of the government’s full support.

Several world leaders, including the US President, the French President and India’s Prime Minister Narendra Modi, condemned the attack and expressed solidarity with Australia.

Authorities said the shooting was the most serious antisemitic attack in the country in decades, coming amid a rise in incidents targeting Jewish institutions since late 2023. Investigations into the motive behind the attack are ongoing.

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US lawmakers move resolution to roll back Trump’s 50% tariffs on Indian imports

Three US lawmakers have moved a resolution to end Trump’s emergency declaration that imposed 50% tariffs on Indian goods, calling the move illegal and harmful to trade ties.

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Three members of the US House of Representatives have introduced a resolution seeking to end former President Donald Trump’s national emergency declaration that led to steep tariffs on imports from India. The lawmakers termed the duties illegal and warned that they have hurt American consumers, workers and long-standing India-US economic ties.

The resolution has been moved by Representatives Deborah Ross, Marc Veasey and Raja Krishnamoorthi. It aims to terminate the emergency powers used to impose import duties that cumulatively raised tariffs on several Indian-origin goods to 50 per cent.

What the resolution seeks to change

According to details shared by media, the proposal specifically seeks to rescind an additional 25 per cent “secondary” tariff imposed on August 27, 2025. This was levied over and above earlier reciprocal tariffs, taking the total duty to 50 per cent under the International Emergency Economic Powers Act.

The House move follows a separate bipartisan effort in the US Senate that targeted similar tariffs imposed on Brazil, signalling growing resistance in Congress to the use of emergency powers for trade actions.

Lawmakers flag impact on US economy and consumers

Congresswoman Deborah Ross highlighted the deep economic links between India and her home state of North Carolina, noting that Indian companies have invested over a billion dollars there, creating thousands of jobs in sectors such as technology and life sciences. She also pointed out that manufacturers from the state export hundreds of millions of dollars’ worth of goods to India each year.

Congressman Marc Veasey said the tariffs amount to a tax on American households already facing high costs, stressing that India remains an important cultural, economic and strategic partner for the United States.

Indian-American Congressman Raja Krishnamoorthi described the duties as counterproductive, saying they disrupt supply chains, harm American workers and push up prices for consumers. He added that rolling back the tariffs would help strengthen economic and security cooperation between the two countries.

Background of the tariff hike

Earlier in August 2025, the Trump administration imposed a 25 per cent tariff on Indian goods, which came into effect from August 1. This was followed days later by another 25 per cent increase, citing India’s continued purchase of Russian oil. The combined duties were justified by the administration as a measure linked to Moscow’s war efforts in Ukraine.

Wider push against unilateral trade actions

The latest resolution is part of a broader push by congressional Democrats to challenge unilateral trade measures and reassert Congress’ constitutional authority over trade policy. In October, the same lawmakers, along with several other members of Congress, had urged the President to reverse the tariff decisions and work towards repairing strained bilateral relations with India.

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Mexico imposes 50% tariff on Indian imports, auto exports maybe hit

Mexico’s approval of 50% import duties on select goods from India and other Asian countries threatens nearly $1 billion worth of Indian exports, especially in the automobile sector.

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Mexico has cleared steep import duties of up to 50% on several goods from Asian nations, a move that places nearly $1 billion worth of Indian exports at risk from January 1, 2026. The decision targets countries that do not have a trade agreement with Mexico, including India, South Korea, China, Thailand and Indonesia.

Mexico moves to shield domestic industry

The new duties—covering items such as automobiles, auto parts, textiles, plastics, steel, footwear, furniture, toys, appliances, leather goods, and cosmetics—are aimed at strengthening local manufacturing. Mexico says the tariff push is designed to reduce dependence on Asian imports and support domestic producers.

China stands to face the highest impact, with Mexican imports from the country touching $130 billion in 2024. According to Mexico, the revised tax structure is also expected to generate $3.8 billion in additional revenue.

Mexican President Claudia Sheinbaum has backed the decision, framing it as an investment in domestic employment creation. Analysts, however, believe the move may also align with the United States’ expectations ahead of the upcoming United States–Mexico–Canada (USMCA) review.

Impact on India’s automobile exports

The sharpest blow for India will fall on its automobile sector. Imports of passenger cars into Mexico will now face 50% duty instead of the earlier 20%, threatening the competitiveness of major exporters including Volkswagen, Hyundai, Nissan and Maruti Suzuki.

Industry estimates cited in a report say around $1 billion worth of Indian automobile shipments could be affected. Ahead of the tariff announcement, an industry body had urged the Indian government to engage with Mexican authorities to safeguard market access.

Mexico is currently India’s third-largest car export destination, trailing only South Africa and Saudi Arabia.

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