Aerospace and Defense

Members Only

As part of the Clinton-Krishna 5-pillar strategy agreed in July 2009, strategic cooperation (nonproliferation, counterterrorism and military cooperation) forms the first pillar, and as such represents one of the most important and promising elements of the bilateral relationship as India plans to procure over $45b worth of advanced military and security equipment to modernize its armed forces over the next five years.

To overcome roadblocks that stand in the way of critical tools addressing "areas of convergence" such as counter-terrorism, maritime security, cyber security, regional as well as global security, the Communications and Interoperability Security Memorandum of Agreement (CISMOA), among other agreements, must be signed.

We must partner in combating terror. This means greater defense/security cooperation. Several major programs, for which USIBC members are vying, are an important element in intensifying defense and strategic collaboration between the U.S and India.

USIBC suggests raising the FDI cap for investment in India's defense sector from 26% to 74%. This move will bolster confidence and enable U.S. companies to make more robust investment in activities that facilitate technology transfer.

USIBC supports a robust strategic relationship with India, including transfer of defense technology and licensing – in consonance with U.S. National Disclosure Policy and believes export controls policy should be reflective of the evolving strategic relationship between both countries. 

 USIBC's Executive Defense Committee focuses on several key objectives that our outlined below:

• Urge for expeditious conclusion of "foundation agreements" - CISMOA, LSA, BECA as well as progress on TAAs
• Map the Indian acquisition and procurement system (DPP 2009) to the U.S. Foreign Military Sales (FMS) and Direct Commercial Sales (DCS) systems
• Engender a positive environment of trust that results in major defense platform sales to India, and continue to advocate for successful procurement by India of Medium Multi Role Combat Aircraft from a U.S. supplier.
• Urge the MoD / DoFA to implement clear guidelines, or terms and conditions on how offsets will be validated, discharged and liability measured. USIBC urges the GOI to sign any pending offset agreements.
• Underscore the need for the U.S. and India to collaborate even more closely on intelligence gathering, counter-terrorism initiatives and joint development of defense systems and homeland security technology.
• Work with the U.S. Government to rationalize and streamline export controls on high technology and dual-use items
• Promote partnerships and joint ventures with the Indian defense sector, resulting in co-production.