Western leaders look to grab slice of Indian defence pie

The US administration has also proposed US companies to join hands with Indian partners in setting up manufacturing facilities for five major systems in India.

With the Narendra Modi government likely to take up major defence initiatives in the upcoming Budget, major western leaders are rushing to India for a prominent space in the South Asian nation?s military modernization plans. The rush to get a piece of the Indian defence pie is evident from the fact that a senior Pentagon official has been appointed to lead the defence trade initiative dialogue with India and is expected to be visiting India soon.

However, US Senator John McCain is due to arrive in New Delhi on Thursday, even as both sides are in the process of finalising dates for the visit of Secretary of State John Kerry, ahead of Prime Minister Narendra Modi?s visit to that country in September. McCain?s Arizona constituency is host to some of Boeing and Raytheon?s most important defence businesses.

In the pipeline is finalisation of dates for the visit of the US defence secretary Chuck Hagel, who has said that he plans to play an active and very personal role in expanding the Defence Trade and Technology Initiative (DTTI) because it is a centrepiece of America?s defence cooperation with India.

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Pentagon?s Undersecretary for Acquisition, Technology, and Logistics Frank Kendall will be leading the US-India DTTI with India?s new government. During his visit representatives of US defence majors including Lockheed Martin, Boeing, Raytheon, General Dynamics, Northrop Grumman, BAE Systems and others, are expected to come as they are keen to sell their wares to India.

Also, slated to visit India are British foreign secretary William Hague and finance minister George Osborne later this month. Though preparatory in nature for the expected visit of the British Prime Minister David Cameron later this year, the senior leaders are expected to discuss strengthening of defence trade and trade, and investments.

?Issues on the table for discussions with the US would include India?s 15-year Long-Term Integrated Perspective Plan (LTIPP) from 2012 to 2027, simplification of procurement process, co-production of specific platforms including the Javelin anti-tank missile. The MoD has to decide how to go about the joint production/development of this system,? revealed sources.

The US department of defence (Pentagon) had written to MoD here, during the UPA regime, proposing the two countries collaborate in jointly developing a next-generation version of the Javelin anti-tank missile. India has been offered a specific share of the development programme.

The US administration has also proposed US companies join hands with Indian partners in setting up manufacturing facilities for five major systems in India. These include the MH-60 Romeo multi-role helicopter, built by Sikorsky and Lockheed Martin; a delivery system for scatterable mines; and the M-45 127-mm rapid-fire naval gun.

?With India?s defence budgetary allocation expected to touch $50 billion in the new defence Budget to be announced July 10, nobody wants to miss the bus,? said a senior defence ministry official. Adding, ?the major portion of India?s expenditure on new procurements will go to air platforms in the near term, with spending expected to exceed $15 billion in the next couple of years.?

On Tuesday, French foreign minister Laurent Fabius on Tuesday called on Prime Minister Narendra Modi and discussed ways to strengthen cooperation in key areas such as defence, trade and investment with India expressing keenness on setting up industrial bases for it to boost ties.

?The next step is for the French firm Dassault and for the Indian government to discuss the details which have not yet been discussed and hopefully reach a conclusion. For us the earlier, the better…,? said the minister in response to a media query.

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First published on: 02-07-2014 at 01:17 IST
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