English हिन्दी
Connect with us

Latest world news

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

Published

on

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

Latest world news

Mojtaba Khamenei warns against expecting US policy shift after midterms

Iran’s Supreme Leader Mojtaba Khamenei has warned against expecting a change in US policy towards Tehran following the Democratic Party’s victory in the US midterm elections. He also cautioned that any renewed American attacks on Iran would widen the ongoing Middle East war.

Published

on

Mojtaba

Iran’s Supreme Leader Mojtaba Khamenei has warned against expecting a change in US policy towards Tehran following the Democratic Party’s victory in the US midterm elections. He said those hoping that political changes in Washington would lead to a shift in America’s approach towards Iran were seriously mistaken.

His remarks came after Democrats secured control of both the US House of Representatives and the Senate, dealing a major electoral setback to President Donald Trump and his Republican Party.

In a message posted on the social media platform X on Wednesday, November 4, Khamenei said Iranians understood their position towards the United States more clearly than ever. He also said that examining the reasons behind what he described as US hostility and Iran’s resistance would provide guidance for the country’s future course.

Khamenei cautioned against viewing changes in the political balance in Washington as an indication that American policy towards Iran would become less hostile.

Khamenei Warns Of Wider Middle East War

The Iranian Supreme Leader also warned that the ongoing Middle East war could expand further if the United States resumed its attacks on Iran.

“Should such aggressions be repeated, its (the war) scope will become much wider,” he said.

His warning comes amid continuing tensions between Washington and Tehran, with the conflict involving the two countries remaining a major issue in US politics.

Democrats Take Control Of Both Houses Of Congress

The Democratic Party secured control of both chambers of the US Congress in the midterm elections, marking a significant setback for Trump’s Republicans.

The party benefited from public dissatisfaction with Trump and gained greater power to scrutinise and challenge his administration during the final two years of his presidency.

Trump, meanwhile, struck a conciliatory tone in an interview with The New York Times, saying he was “absolutely willing to accept those results” and was prepared to work with Democrats.

Iran War Emerged As A Key Election Issue

The war involving Iran was among the major issues during the US midterm election campaign.

Democratic candidates criticised Trump over the conflict and linked it to economic difficulties that had contributed to frustration among voters across the country.

Khamenei’s remarks, however, indicated that Tehran does not expect the change in congressional control to result in a fundamental shift in Washington’s approach towards Iran.

Continue Reading

Latest world news

Trump says Republicans would have won US midterms if he was on ballot

US President Donald Trump claimed Republicans would have won the 2026 midterm elections in a landslide if he had been on the ballot, as Democrats made significant gains in key congressional contests.

Published

on

donald-trump

US President Donald Trump has reacted to the Republican Party’s setbacks in the 2026 US midterm elections, claiming that the party would have secured a landslide victory if he had been on the ballot.

Trump made the remark as Democrats registered significant gains in congressional contests, putting Republican control of Congress under pressure.

The November 3 midterm elections were widely seen as an important test of Trump’s presidency, with all 435 seats in the House of Representatives and 35 Senate seats up for election.

According to Trump’s assessment, his presence on the ballot would have changed the outcome for Republicans.

The President’s remarks came after Democrats made significant advances in several closely watched races, challenging Republican control of both chambers of Congress.

Democrats make gains in key congressional races

The election results indicated a strong performance by Democrats in several important contests.

In the Senate, Democrats flipped multiple Republican-held seats, including victories in Texas, South Carolina and Ohio. In the House of Representatives, Democratic candidates also defeated several Republican incumbents, bringing the party closer to securing a majority.

The developments raised the possibility of Democrats taking control of both chambers, although some contests were still being counted.

A change in congressional control would have significant implications for Trump’s remaining presidential term, potentially making it more difficult for his administration to advance its legislative agenda.

Why the 2026 US midterm elections matter

The US midterm elections take place halfway through a president’s four-year term. Unlike presidential elections, voters elect members of Congress, including representatives and a portion of the Senate.

The elections are particularly important because the party controlling Congress has considerable influence over legislation, government spending and oversight of the administration.

For Trump, the 2026 elections were a major political test as Republicans sought to maintain their congressional majorities.

Democratic gains could change the political balance in Washington during the final two years of his presidency.

Continue Reading

Latest world news

Trump approval rating near record low at 32% ahead of US midterms

US President Donald Trump’s approval rating remained at 32% ahead of the congressional midterm elections, just above his record-low reading of 31% recorded two weeks earlier, according to a nationwide poll.

Published

on

Donald Trump

US President Donald Trump’s approval rating remained close to its lowest level ahead of Tuesday’s congressional midterm elections, with a nationwide poll indicating that a significant section of American voters viewed their ballots as an opportunity to express opposition to the Republican leader.

According to the latest poll completed on Monday, November 2, only 32% of respondents approved of the job Trump was doing as President. The figure was unchanged from the previous week and just one percentage point above his record-low reading of 31%, recorded two weeks earlier.

The findings come as Republicans seek to retain their majorities in Congress, with all 435 seats in the House of Representatives up for grabs and several closely contested races expected to shape the Senate.

Although Trump himself is not on the ballot, his presidency has emerged as a significant factor in the midterm elections.

Democrats lead Republicans in nationwide congressional preference

The poll found that Democrats held an eight-percentage-point advantage over Republicans when respondents were asked which party they preferred to see in charge of Congress.

Around 46% of respondents favoured Democrats, compared with 38% who preferred Republicans.

However, the Democratic lead was narrower than the 11-percentage-point advantage recorded in a similar poll conducted a week earlier.

The so-called generic ballot question provides an overall indication of voters’ preferences between the two parties for control of Congress. However, it does not account for differences between individual states and congressional districts, which ultimately determine the composition of the House and Senate.

Political strategists from both parties believe Democrats have a stronger opportunity to take control of the House of Representatives. Their prospects in the Senate are considered more difficult, with the party facing challenges in states including Alaska and Michigan.

Half of independent voters see their vote as opposition to Trump

The survey also highlighted the extent to which Trump is influencing voters’ decisions despite not contesting the election himself.

Among registered independent voters, 50% said they viewed their congressional vote as a vote against Trump.

In comparison, 13% said their vote was in support of the President, while 33% said Trump was not a factor in their voting decision.

These findings indicate that voters’ views of the President are an important consideration for a section of the electorate heading into the congressional elections.

Rising cost of living emerges as a major election issue

Economic concerns, particularly the rising cost of living, featured prominently in the poll.

Around 78% of respondents said the cost of living would be either a very important or the most important issue in determining their voting decisions.

When asked which party was better equipped to handle the issue, 43% chose Democrats, compared with 32% who favoured Republicans.

The poll also pointed to concerns over rising fuel prices following the US military campaign against Iran, which began in February.

The increase in fuel prices has added to the economic challenges facing the Trump administration ahead of the elections.

Democrats report greater enthusiasm about voting

The survey also found a difference in voting enthusiasm between supporters of the two major political parties.

Around 49% of Democratic voters said they were very enthusiastic about voting in the midterm elections.

Among Republican voters, the corresponding figure stood at 33%.

The difference in enthusiasm is an important factor for both parties as they seek to mobilise their supporters and secure votes across the country.

The latest poll surveyed 1,765 US adults online and had a margin of error of two percentage points.

Continue Reading

Trending

© Copyright 2022 APNLIVE.com