The Hindu : International / India & World : "India can be an excellent base for U.S. defence industry"

Online edition of India's National Newspaper
Wednesday, Jun 29, 2005

International

International - India & World

"India can be an excellent base for U.S. defence industry"

Sridhar Krishnaswami

However we are looking for a long-term commitment, says Pranab

WASHINGTON: Given the geo-political environment and its proven track record, India "should justifiably be allowed to access all the technologies and defence equipment that it needs. There should at least be no moral inhibition on this account," Defence Minister Pranab Mukherjee said. "However I do realise that we live in a real world of practical people who have to take into consideration factors of realpolitik," he said at a meeting with the U.S.-India Business Council here.

Stressing that there were "great opportunities" for business in India's defence sector, Mr. Mukherjee called for this business in defence to be viewed in a broader perspective. "Security and defence are quintessentially sovereign functions. They are inextricably linked with politics and foreign policy," the Minister said, pointing out that the overall security scenario must form the backdrop of the cooperation between India and the United States.

On commercial opportunities for American industry in the sale of equipment and weapons Mr. Mukherjee noted that India did not look purely at a "buyer-seller" relationship; rather the relationship had to be strategic and New Delhi was looking for a "long-term" commitment. Substantial commercial opportunities would come from transfer of technology, co-development, co-production, mutual outsourcing and joint marketing.

Although the two countries were close in terms of shared values "we have yet to develop a substantial partnership in the defence industrial sector, Mr. Mukherjee said.

"If as many experts assert, India and the U.S. are natural allies then the question that arises is why has this alliance not materialised in concrete terms? Although there have been some recent positive developments, there is nevertheless enormous potential for further progress in this regard."

Pointing to India's vast industrial infrastructure, particularly in the defence sector, Mr. Mukherjee said India could be an excellent base for the U.S. defence industry in a number of areas such as repair, overhaul, maintenance and servicing and, as a centre for regional distribution and services.

"With the opening up of the aviation sector in India a large number of aircraft are being acquired. This would provide an excellent opportunity for leading U.S. companies to enter into partnerships with established Indian companies for repair, overhaul, maintenance and other services.

"Great opportunities for a long-term mutually beneficial partnership between the defence industries of the United States and India exist. We need to, in a purposeful and progressive manner, remove impediments coming in the way of our natural alliance and join hands to make this world a more secure, peaceful and prosperous place," the Defence Minister said.

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