US-India Defense Ties

Amidst talks over Prime Minister Narendra Modi’s forthcoming visit to the United States in June, American officials are grappling with Indian government’s reluctance to sign the Defence Intelligence Sharing agreement between the two countries

Indian officials confirmed that US Defence Secretary Ash Carter had raised this issue in delegation-level talks with Defence Minister Manohar Parrikar at Delhi earlier this month. Senior government officials, however, said that while the US had been insistent on it — and has raised it at political, bureaucratic, and military levels — they have told the US that “we are not ready for it yet”.

Two senior American officials from the US Defence Intelligence Agency are scheduled to visit Delhi next month to deliberate over the agreement. However, sources said, their meetings with senior Indian officials were yet to be confirmed.

“Defence intelligence cooperation is mentioned in the Defence Framework Agreement signed between the two countries in 2015. Enhanced exchange of military intelligence has also featured in all the discussions between PM Modi and President Obama but we have seen no progress in operationalising it,” a US official told The Indian Express.

Senior Indian military officials dealing with intelligence said that while they have regular meetings with US military officials, signing the agreement was a political decision in which they had little say.

India and the US had signed a defence intelligence sharing agreement in 2003, which focused on exchange of intelligence pertaining to terrorism and countries supporting terrorism. No countries were mentioned by name, although even at the last moment, US officials had wanted the draft to be amended to include ‘rogue states’ like Iran, Libya and North Korea, which India flatly refused to do.

“What was signed in 2003 in Washington DC was after consultations and acceptance of all the other ministries here, and it took care of India’s strategic interests without compromising our autonomy or interests in any way,” said Lt General (retd) Kamal Davar, who was the founder chief of the Defence Intelligence Agency and signed the 2003 agreement.

When that agreement expired in 2008, the UPA government, with AK Antony as defence minister, did not extend the agreement. Following the return of BJP government in 2014, and discussions between Prime Minister Modi and President Obama, US officials were hopeful of India signing another agreement similar to the 2003 one.

- See more at: http://indianexpress.com/article/india/india-news-india/as-us-pushes-defence-intelligence-sharing-pact-india-says-not-ready-yet-2772014/#sthash.7AbaEbWH.dpuf

Wary of China's Indian Ocean activities, US, India discuss anti-submarine warfare


The US-Indian Strategic Partnership intensifies to include not only anti-submarine warfare cooperation, but even joint exercises of this type right on China's doorstep in the Philippine Sea.an Indian naval source, briefed on the discussions, said the focus of the next set of joint exercises to take place in the northern Philippine Sea in June will be on anti-submarine warfare.  

Retired Vice Adm. Anup Singh's abovementioned quote is key confirmation of what many of us have already suspected, which is that India has dramatically pivoted towards the US in the last month.

One of the worst is how the anti-China group that Modi hosted in Dharamsala is also anti-Russian and even held a conference supporting the so-called "Global Magnitsky Act".



Oh, and don't forget the "Logistic Service Agreement" that was agreed to in principle with the US during Def. Sec. Carter's visit, which essentially turns the whole country into one big military base against China.

Modi is really turning out to be a sore disappointment in my opinion.  

India Becomes 11th International Customer for Longbow LLC’s Apache Radar

The U.S. Army awarded Longbow Limited Liability Company (LLC) a $57.1 million foreign military sale contract to provide the Indian Air Force with Longbow Fire Control Radar (FCR) systems for their new Apache AH-64E helicopters. Longbow LLC is a joint venture of Lockheed Martin and Northrop Grumman Corporation.

Under this contract, $57.1 million is obligated to Longbow LLC with a total value not to exceed $116.7 million. The contract covers the production of 12 Longbow FCR systems and spares for India. Production will extend through early 2019 at Lockheed Martin’s Orlando and Ocala, Florida, facilities and at Northrop Grumman’s Baltimore facility.

“With Longbow FCR, the Indian Air Force will receive a rapid all-weather targeting capability,” said Jim Messina, Longbow LLC president and director of Longbow programs at Lockheed Martin Missiles and Fire Control. “The FCR’s air over-watch mode provides aircrews with 360-degree situational awareness, improving survivability and mission success.”

“Our highly reliable Longbow FCR has been repeatedly proven in combat, protecting warfighters around the globe at an affordable cost,” said Ike Song, vice president, Mission Solutions, Northrop Grumman’s Land & Avionics C4ISR Division.

For more than a decade, the Longbow FCR has enabled Apache aircrews to automatically detect, locate, classify and prioritize targets. It enables rapid, multi-target engagement in all weather, over multiple terrains and through battlefield obscurants.


Northrop Grumman is a leading global security company providing innovative systems, products and solutions in autonomous systems, cyber, C4ISR, strike, and logistics and modernization to government and commercial customers worldwide.

Headquartered in Bethesda, Maryland, Lockheed Martin is a global security and aerospace company that employs approximately 125,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services.

New York: It's now beyond the shadow of a doubt that the US is investing in a long-term strategic partnership with India, and has identified China’s growing military assertiveness as a threat. Since the US and India are not treaty allies, Democratic Virginia Senator Mark Warner and Republican Senate Majority Whip John Cornyn have introduced legislation in the Senate to institutionalise the US-India security partnership.

"The US-India Defense Technology and Partnership bill bestows upon India the status it deserves as a partner in promoting security in Asia and around the world," said Senator Warner on Tuesday after introducing the bill in the Senate.

The legislation seeks to elevate India to the same status as America’s allies in the North Atlantic Treaty Organisation, as well as its other major treaty partners like Japan, Australia, New Zealand and Israel, for the purpose of arms-sales notifications. Both China and Pakistan are likely to sit up and take note of the move as many countries have sought and been denied this status.

"As an important partner with a flourishing economy, India has huge potential as a market for American defense manufacturers," noted Senator Warner.

The US-India Defense Technology and Partnership Act underlines the dramatic change in today’s political environment. Prime Minister Narendra Modi who is likely to address a joint session of the US Congress in June will further cement bilateral defense ties during his visit to Washington. The Modi government knows it cannot aggressively pursue military modernisation without access to advanced US weaponry and technology. Of course, the prime minister has his work cut out: he has to sell the pact to New Delhi's intractable defense establishment, people who struggled through the era of harsh US sanctions after Vajpayee's government conducted the 1998 nuclear tests.

In a telling sign of a bolder strategic engagement between Washington and New Delhi, the US may be willing to examine the sale or joint production of missile shield systems to help New Delhi guard against nuclear threats. US Secretary of Defense Ashton Carter, who has vigorously pushed for an effective defense partnership over the past eight years, first mooted this idea in 2012. But without key legislation in place, the Americans have had to watch from the sidelines while New Delhi approved the procurement of Russian S-400 systems. Last year, India become the second foreign buyer of the advanced Russian surface-to-air ballistic missile defense system after China.

According to defense analysts, the US is hoping to sell India the Patriot Advanced Capability (PAC)-3 missile defense system but India is more interested in building its own systems than buying some from the US. The ‘hit-to-kill’ American PAC-3 missile is the world’s most advanced and can destroy enemy-fired tactical ballistic missiles carrying weapons of mass destruction, advanced cruise missiles and aircraft. During Operation Iraqi Freedom, a mix of PAC-3 missile interceptors and PAC-2 air defense missiles destroyed a series of short-range ballistic missiles fired by Iraq.
Pakistan and China will obviously follow any US-India anti-missile cooperation with great interest, as cooperation in this area is not only an indication of their shared strategic interests, but also has implications for India which is developing its own indigenous Ballistic Missile Defence (BMD) system to defend against both Pakistani and Chinese missiles. India started its own BMD programme in 1995.

The US-India Business Council (USIBC) hailed Senator Warner and Coryn’s leadership in introducing this bill in the Senate. Republican Congressman George Holding from North Carolina introduced similar legislation in the House of Representatives in March.

"The commercial and security imperatives for a robust defense partnership between the US and India could not be clearer. Defense trade has risen from some $300 million to over $14 billion over the last 10 years and there is every reason to expect it to rise further," said USIBC President Mukesh Aghi.

The Indian military is considering purchasing major weapons systems from American companies. The countries are also holding talks on the supply of F-16 and F/A-18 fighter jets for the Indian Air Force.

The Modi government has pursued three "foundational defense agreements" — the Logistic Exchange Memorandum of Agreement (LEMA), the Communication and Information Security Memorandum (CISMOA) and the Basic Exchange and Cooperation Agreement (BECA). The previous UPA government opposed these three agreements as they argued that they would undermine India’s policy of nonalignment. The logistics agreement will allow both countries to access each other’s supplies, spare parts, and services from military bases and ports, making it easier to coordinate their military activities.

The Modi government has asked the United States to modify the agreements so that India’s security and sovereignty are not compromised.


http://www.firstpost.com/world/new-times-new-ties-india-us-defence-bill-will-be-closely-watched-by-pakistan-and-china-2775706.html

India's defense minister expressed that India is not interested in acquiring US F-16 fighter aircraft despite aggressive lobbying by Lockheed Martin.

In what can be seen as a sharp denial to the US, India has dismissed a proposal made by Lockheed Martin Corp to build F-16 fighter jets in India.

India's defense minister Manohar Parrikar said in Parliament, "The experience of flying against F-16 is what we require as we are not going to induct F-16, at least; as of now."

The defense minister was replying to a query by a lawmaker who suggested that Indian fighter pilots should get first-hand experience flying F-16s during the ongoing Red Flag joint exercise in Alaska. Parrikar informed the Parliament that the most crucial part of the Red Flag exercise was acclimatizing the Indian Air Force to counter enemy planes like the F-16.

"During the exercise, we are getting very crucial important data about flying against aircraft which are there in the stockpile of our adversaries. So we actually learn how to counter them."


This statement by India's defense minister comes at the backdrop of US defense firm Lockheed Martin's desperate attempts to sell its F-16 fighter jets to India, either directly or by teaming up with Indian firms in the manufacturing process.

Earlier this month, representatives of Lockheed Martin met Indian Defense Ministry officials to discuss the possibility of setting up the final assembly line in India. According to Defense Ministry sources, Lockheed Martin sought an opportunity to take part in the 'Make in India' project but no concrete proposal could not be finalized. Earlier this year, the defense minister announced that India would involve the private sector in establishing one or more fighter jet manufacturing units under the Make in India campaign.


Read more: http://sputniknews.com/military/20160506/1039181348/india-us-refuses-f16-jets.html#ixzz48XyuvSNu

Tata Advanced Systems and Boeing have broken ground on facility in Hyderabad that will produce AH-64 Apache fuselages under a joint venture arrangement between the two companies.

“The Hyderabad production facility will eventually be the sole producer of AH-64 fuselages globally,” says Boeing in a statement. “The Apache has been flown or selected for acquisition by the United States and 15 other nations, including India.”

The joint venture, Tata Boeing Aerospace Ltd., was originally announced at the Dubai air show in 2015.

In September 2015, the US manufacturer confirmed India’s long-awaited order for 22 AH-64E Apaches and 15 CH-47F Chinook helicopters.

https://www.flightglobal.com/news/articles/tata-boeing-break-ground-on-ah-64-fuselage-facilit-426571/

India considers additional 30-unit Hawk buy

India’s defence ministry is considering the acquisition of an additional batch of BAE Systems Hawk advanced jet trainers.

New Delhi indicates it could purchase as many as 30 examples of the Mk132 variant, which would be licence-built by Hindustan Aeronautics (HAL).

Defence minister Manohar Parrikar says the requirement, chiefly for the navy, is still to be fully defined. “We are negotiating for the price and once the price negotiations are over we can announce the final numbers.”

The proposed purchase is in addition to a previously announced need for 20 aircraft to be operated by the air force’s Surya Kiran aerobatic display team. That deal has yet to be concluded, however.

Parrikar also confirms the cancellation of a 2014 request for information for intermediate jet trainers, despite continued delays to its indigenous HAL HJT-36 Sitara programme.

However, he says that production of the HJT-36 has been halted to resolve issues with the type. “The HJT-36 has a lot of the stall-related problems that have been overcome. Spin remains a problem, we will not make any more IJTs until they overcome this problem.”

It is estimated that only six early production examples have been built.

The air force had sought to acquire an imported type after repeated delays and difficulties with the Sitara. Its original schedule called for 73 production aircraft to have been delivered to the service from 2013-2017.

India Seeks Predator-B Drones from US

India is seeking acquisition of American-sourced multi-purpose unmanned aerial vehicles (UAVs) to perform maritime patrol and surveillance duties in its littoral and blue-water spheres.

The drones are seen as a necessary complement to the P-8I Neptune maritime patrol aircraft coming online with the Indian Navy as an element that will help in conducting maritime intelligence, surveillance and reconnaissance (ISR) missions from a high altitude and with a long endurance operational cycle.

The model drone sought by India is the multi-mission Predator B (or Guardian) from U.S.-based General Atomics. It is capable of flying at altitudes up to 50,000 feet, loitering for over 24 hours and monitoring small object movements on a real time basis.

India's letter of request (LOR) to the U.S. - which is a step precipitating a government-to-government foreign military sale (FMS) - comes shortly after the country was inducted into the Missile Technology Control Regime (MTCR), a voluntary grouping committed to ensuring the non-proliferation of unmanned systems capable of delivering weapons of mass destruction.

This was a necessary step for India's Predator B acquisition request, which should be fast-tracked now that the country has been recognized under Major Defense Partner status by the Obama administration.


Predator is too prone to crashes due to lack of subsystem redundancy. Buy Reapers instead.

NEW DELHI: The India-US strategic clinch continues to get tighter. Soon after the two finalised the bilateral military logistics pact, the US has bagged yet another mega arms deal to reassert its status as India's largest weapons supplier in recent years.

Defence ministry sources said the Cabinet Committee on Security (CCS), chaired by PM Narendra Modi, has cleared the acquisition of four Poseidon-8I longrange surveillance and antisubmarine warfare aircraft at a cost of over $1 billon do

"The contract will be inked with Boeing in the next few days. The first P-8I will be delivered to the Navy within three years," said a source. The four new P-8I aircraft, packed with radars and weapons, will join the first eight such aircraft inducted by the Navy in 2013-2015 under a $2.1 billion deal.

The Navy is using the eight P-8Is, armed with deadly Harpoon Block-II missiles, MK-54 lightweight torpedoes, rockets and depth charges, to keep an "intelligent hawk-eye" over the entiover the entire Indian Ocean Region, which has witnessed stepped-up Chinese submarine forays over the last two years. With an operating range of 1,200 nautical miles, "with four hours on station", the P-8Is provide the reach and flexibility to undertake extensive maritime surveillance and intelligence-gathering missions.

They can detect "threats" in India's immediate and extended areas of interest and neutralise them if required. The CCS approval comes after the defence ministry last week also cleared acquisition of 145 M-777 ultra-light howitzers from the US.

The Army wants these 155mm/39calibre howitzers as they can be swiftly airlifted to "threatened high-altitude areas" along the 4,057-km Line of Actual Control with China.

The US, of course, is now also aggressively hawking its fighter jets — the twin-engine F/A-18 "Super Hornet" (Boeing) or the single-engine F-16 "Fighting Falcon" (Lockheed Martin) — for the Make in India programme.

As earlier reported by TOI, the Pentagon aviation majors combine had made detailed presentations to the Indian defence establishment in April for the proposed fighter production line. US under secretary of defence Frank Kendall is leading a top Pentagon-industry delegation to New Delhi again this week for further talks

This comes after India said it wanted "a much higher level" of transfer of technology (ToT) than the "limited" one on offer.

Incidentally, Swedish defence firm Saab has also submitted a detailed proposal, with "attractive ToT", for manufacture of its latest Gripen-E fighter in India.

Read more at:
http://economictimes.indiatimes.com/articleshow/53017543.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppstutm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

100 per cent FDI in defence is a welcome step, but our commercial landscape is not exactly conducive to setting up shop.

This past decade has seen US-India ties go beyond the narrative of a convergence between the world’s oldest and greatest democracies. Nowhere is this more apparent than in the defence sectors ever since Indian Prime Minister Narendra Modi took office in

After a gradual easing of foreign direct investment and ownership rules in the 1990s, US giants like McDonalds slowly made their presence felt via the franchise and joint venture avenues.

Fast forward to 2015, FDI norms in pertinent sectors (specifically construction, real estate, and defence) were eased to 49 per cent following the nationally dominant Bharatiya Janata Party's defeat in the Bihar Assembly elections in November 2015.

Also read: http://www.dailyo.in/politics/narendra-modi-in-america-barack-obama-pakistan-china-nuclear-suppliers-group/story/1/11087.html

Such an expansion has been largely gradual, but recently the government made a leap to allowing 100 per cent FDI in some defence initiatives.

In the United States, this was seen as clear proof that the Senate India Caucus’ lobbying paid off. The Caucus co-chairs Mark Warner (a Democratic senator from Virginia) and John Cornyn (a Republican senator from Texas) have long extolled the virtues of US – India defence and commercial ties.

The 2012 initiation of the Defence Technology and Trade Initiative (DTII) furthered the conversation on bilateral cooperation, indicating that the United States acknowledged India’s emerging regional and global leadership. Plus, with increasing bilateral interaction on defence, India spent $14 billion on US military aircrafts such as C-130s, C-17 transport planes, the P-8 Poseidon maritime reconnaissance aircraft, and various heavy-lift helicopters

In cumulation, these deals and others have turned India into the second largest US weapons buyer after Saudi Arabia. Consequently, joint partnership and co-development of Indian defence capacity for drones and advanced missile systems is being explored.

Nine years after the 1991 liberalisation, trade between the two nations equaled just $19 billion. The 2008 ratification of the US-India civil nuclear agreement planted the seeds for additional commercial links.

Also read: FDI reforms at last: Kudos to Modi sarkar

US investment in India totaled $8 billion and today stands at $28 billion; equity investment has skyrocketed from $7 billion to $12 billion as well. Meanwhile, India's seven per cent growth rate keeps its economy attractive.

With trade already amounting to such numbers, the newly permissive FDI regime in select sectors will evoke greater interest from US aviation, technology, and defence stalwarts.

Although critics decry these radical reforms as tactics to divert attention away from the alleged ousting of Reserve Bank of India chief Raghuram Rajan, there is merit to the initiative.

However, full FDI allowance is only a foot in the door.

In 2015, Lockheed lost to France’s Dassault Aviation on the eventually scrapped ministry of defense facilitated medium multi-role combat tender. Yet, they are still eager to capitalise on the Make In India initiative by prospectively manufacturing F-16s and F/A 18s in India.

Although Lockheed’s endeavours along with those of other original equipment manufacturers are noble, the new FDI standards do not nullify the stifling effects of a tactfully amended stipulation and the state-owned defence establishment.

Previously, foreign equity ownership exceeding 49 per cent was acceptable only if the government felt the external Original Equipment Manufacturer (OEM) bought access to "state of the art" technology.

While that condition has been done away with, a government statement claims "investment beyond 49 per cent has now been permitted through government approval route in cases resulting in access to 'modern' technology."

Also read: Thanks to Modi, a new symphony in India-US defence partnership

The word "modern" is no less subjective than "state of the art". Hence, this open-ended wording paves the way for the political/bureaucratic machinery to tamper with permissions and play favourites.

These macro-level reforms in the form of full 100 per cent equity lenience and craftily reworded clauses are not enough for companies to fully impart their core technologies.

Instead, they only propagate rhetoric of a blossoming US-India friendship that is supposed to yield jobs, technical know-how, and a robust defence-manufacturing ecosystem for the latter.

Such provisions only enable ministry of defence officials and the Defence Research and Development Organisation (DRDO) to solidify their control on defence procurement.

This excessive state control over defence enterprises [known in India as Defence Public Sector Undertakings (DPSU)] has always fueled cronyism resulting in corruption scandals like the AgustaWestland chopper scam.

Furthermore,the MOD-DRDO-DPSU trifecta also sheds light on India’s pervasive civil-military relations schism that relaxed FDI norms cannot veil.

After 1947, the military’s input into defence policy was scarce due to then Prime Minister Jawaharlal Nehru’s distrust of the armed forces. This Nehruvian legacy continues till this day.

Last year in July, the military rejected the Raven mini-unmanned aerial vehicle on the grounds that it would soon be outdated. About a month later, it was announced that US-based AeroVironment and Bangalore-based Dynamatic to co-develop an improved version of the Raven called the Cheel.

Earlier this year, Business Standard defence columnist Ajai Shukla wrote:

"Dynamatic is also eyeing the homeland security market, for which it signed a 'teaming agreement' in 2013 with AeroVironment to co-develop the Cheel, though there are no orders on hand from India’s security forces. Company executives lament the slowness in inducting UAVs, which they point out would have been able to locate the terrorists who attacked Pathankot Air Base earlier this month."

Since the primary entity that evaluates defence technologies is not in sync with the military, even DTTI projects may not always achieve their timely potential.

Plus, the internal commercial landscape is not exactly conducive to setting up shop and technology transfer. The delays in registering intellectual property, stringent domestic price controls on land acquisition, and government scrutiny with contracts cannot be overlooked.

Even if Lockheed does eventually construct F-16 facilities in India, they might either import crucial components or sub-assemblies from their American plants.

Thus, 100 per cent foreign ownership is not enough incentive for Lockheed to transfer technology to a country that seeks self-sufficiency in its defence sector.

Yes, the liberal foreign ownership restrictions are a step in the right direction. But will US-India defence engagement be mutually beneficial considering the latter’s domestic political economy?

http://www.dailyo.in/politics/india-american-defence-ties-100-percent-fdi-narendra-modi/story/1/11625.html

India is reported to be allegedly produce fighter F-16 Block 70/72

http://bmpd.livejournal.com/2011952.html

This past decade has seen US-India ties go beyond the narrative of a convergence between the world’s oldest and greatest democracies. Nowhere is this more apparent than in the defence sectors ever since Indian Prime Minister Narendra Modi took office in 2014.

After a gradual easing of foreign direct investment and ownership rules in the 1990s, US giants like McDonalds slowly made their presence felt via the franchise and joint venture avenues.

Fast forward to 2015, FDI norms in pertinent sectors (specifically construction, real estate, and defence) were eased to 49 per cent following the nationally dominant Bharatiya Janata Party's defeat in the Bihar Assembly elections in November 2015.

Also read: Why Modi is pushing India closer to US

Such an expansion has been largely gradual, but recently the government made a leap to allowing 100 per cent FDI in some defence initiatives.

In the United States, this was seen as clear proof that the Senate India Caucus’ lobbying paid off. The Caucus co-chairs Mark Warner (a Democratic senator from Virginia) and John Cornyn (a Republican senator from Texas) have long extolled the virtues of US – India defence and commercial ties.

The 2012 initiation of the Defence Technology and Trade Initiative (DTII) furthered the conversation on bilateral cooperation, indicating that the United States acknowledged India’s emerging regional and global leadership. Plus, with increasing bilateral interaction on defence, India spent $14 billion on US military aircrafts such as C-130s, C-17 transport planes, the P-8 Poseidon maritime reconnaissance aircraft, and various heavy-lift helicopters.

choppersbd_070816013612.jpg
India has become the second largest US weapons buyer after Saudi Arabia.
In cumulation, these deals and others have turned India into the second largest US weapons buyer after Saudi Arabia. Consequently, joint partnership and co-development of Indian defence capacity for drones and advanced missile systems is being explored.

Nine years after the 1991 liberalisation, trade between the two nations equaled just $19 billion. The 2008 ratification of the US-India civil nuclear agreement planted the seeds for additional commercial links.

Also read: FDI reforms at last: Kudos to Modi sarkar

US investment in India totaled $8 billion and today stands at $28 billion; equity investment has skyrocketed from $7 billion to $12 billion as well. Meanwhile, India's seven per cent growth rate keeps its economy attractive.

With trade already amounting to such numbers, the newly permissive FDI regime in select sectors will evoke greater interest from US aviation, technology, and defence stalwarts.

Although critics decry these radical reforms as tactics to divert attention away from the alleged ousting of Reserve Bank of India chief Raghuram Rajan, there is merit to the initiative.

However, full FDI allowance is only a foot in the door.

In 2015, Lockheed lost to France’s Dassault Aviation on the eventually scrapped ministry of defence facilitated medium multi-role combat tender. Yet, they are still eager to capitalise on the Make In India initiative by prospectively manufacturing F-16s and F/A 18s in India.

Although Lockheed’s endeavours along with those of other original equipment manufacturers are noble, the new FDI standards do not nullify the stifling effects of a tactfully amended stipulation and the state-owned defence establishment.

Previously, foreign equity ownership exceeding 49 per cent was acceptable only if the government felt the external Original Equipment Manufacturer (OEM) bought access to "state of the art" technology.

While that condition has been done away with, a government statement claims "investment beyond 49 per cent has now been permitted through government approval route in cases resulting in access to 'modern' technology."

Also read: Thanks to Modi, a new symphony in India-US defence partnership

The word "modern" is no less subjective than "state of the art". Hence, this open-ended wording paves the way for the political/bureaucratic machinery to tamper with permissions and play favourites.

These macro-level reforms in the form of full 100 per cent equity lenience and craftily reworded clauses are not enough for companies to fully impart their core technologies.

Instead, they only propagate rhetoric of a blossoming US-India friendship that is supposed to yield jobs, technical know-how, and a robust defence-manufacturing ecosystem for the latter.

Such provisions only enable ministry of defence officials and the Defence Research and Development Organisation (DRDO) to solidify their control on defence procurement.

This excessive state control over defence enterprises [known in India as Defence Public Sector Undertakings (DPSU)] has always fueled cronyism resulting in corruption scandals like the AgustaWestland chopper scam.

Furthermore,the MOD-DRDO-DPSU trifecta also sheds light on India’s pervasive civil-military relations schism that relaxed FDI norms cannot veil.

After 1947, the military’s input into defence policy was scarce due to then Prime Minister Jawaharlal Nehru’s distrust of the armed forces. This Nehruvian legacy continues till this day.

Last year in July, the military rejected the Raven mini-unmanned aerial vehicle on the grounds that it would soon be outdated. About a month later, it was announced that US-based AeroVironment and Bangalore-based Dynamatic to co-develop an improved version of the Raven called the Cheel.

Earlier this year, Business Standard defence columnist Ajai Shukla wrote:

"Dynamatic is also eyeing the homeland security market, for which it signed a 'teaming agreement' in 2013 with AeroVironment to co-develop the Cheel, though there are no orders on hand from India’s security forces. Company executives lament the slowness in inducting UAVs, which they point out would have been able to locate the terrorists who attacked Pathankot Air Base earlier this month."

Since the primary entity that evaluates defence technologies is not in sync with the military, even DTTI projects may not always achieve their timely potential.

Plus, the internal commercial landscape is not exactly conducive to setting up shop and technology transfer. The delays in registering intellectual property, stringent domestic price controls on land acquisition, and government scrutiny with contracts cannot be overlooked.

Even if Lockheed does eventually construct F-16 facilities in India, they might either import crucial components or sub-assemblies from their American plants.

Thus, 100 per cent foreign ownership is not enough incentive for Lockheed to transfer technology to a country that seeks self-sufficiency in its defence sector.

Yes, the liberal foreign ownership restrictions are a step in the right direction. But will US-India defence engagement be mutually beneficial considering the latter’s domestic political economy?

http://www.dailyo.in/politics/india-american-defence-ties-100-percent-fdi-narendra-modi/story/1/11625.html

http://www.ndtv.com/india-news/india-orders-4-maritime-spy-planes-worth-1-billion-report-1436891

NEW DELHI: India signed a contract on Wednesday to buy four maritime spy planes from Boeing Co for about $1 billion, defence and industry sources told news agency Reuters. India is aiming to bolster its navy as it tries to check China's presence in the Indian Ocean.

Eight of these long-range P-8I aircraft have already been deployed to track submarine movements in the Indian Ocean and on Wednesday exercised an option for four more, two defence ministry officials and an industry source told Reuters.

"It's a follow-on order, it was signed today," a defence ministry official told Reuters, speaking on condition of anonymity as he is not authorised to make announcements on procurements.

A second defence official confirmed the value of the contract at about $1 billion and said the aircraft were expected to enter service over the next three years.

Amrita Dhindsa, a spokeswoman for Boeing defence, space, and security in India, said she was not in a position to say anything on the contract and referred all questions to the defence ministry. But she said the P81 was an aircraft used not only for long-range patrol, but was also equipped with Harpoon missiles for anti-submarine warfare.

India has been building up its naval surveillance capabilities since China's navy expanded its reach and sent submarines, including one that's nuclear-powered which docked in Sri Lanka.

The deal, signed during a visit by the US Under Secretary of Defense for Acquisition Frank Kendall, marks a further tightening of India's ties with the United States, which has emerged as a top arms supplier in recent years for India's largely Soviet-equipped military.

A US embassy spokesman was not immediately available for comment.

Boeing last year completed the delivery of the last of the aircraft under the previous order worth $2.1 billion, an industry source said.

The Indian navy has deployed some of its P8-I aircraft to the Andaman and Nicobar islands near the Malacca Straits and two other routes into the Indian Ocean for military and commercial shipping.

© Thomson Reuters 2016

What on earth is happening in India on contract negociations? Yesterday we had news of one deal with Boeing now there is this. My highlight. Joined up procurement?

US manufacturing giant Boeing has failed to fully comply with the terms of a defense deal to provide Very Heavy Lift Transport Aircraft, worth billions of dollars. The Comptroller and Auditor General (CAG), India's top auditing body, published a report slamming Boeing for not providing contractually-specified flight and maintenance training facilities, despite three whole years passing since the 2013 deadline. As a result, the Indian air force is unable to fly or maintain the aircraft, undermining the very purpose of the deal.

The CAG report says, "As per the offset contract signed in June 2011, the simulator services were to be made available within two years i.e. by July 2013; however Boeing has yet to setup simulator services in India, which is affecting operation of the aircraft."

As part of the offset deal, Boeing was to set up a unique C-17 platform training facility for maintenance training at cost of USD 38.21 million and a C-17 simulator center for flying training at cost of USD 96.87 million by July 2013. The training requirement for initial qualification, quarterly skill reviews, additional instruction and special operations tests was estimated to entail 1,700 hours per year for the aircrew of the C-17 Squadron.

Apart from this, Boeing has broken another contract. Boeing had agreed to set up special support infrastructure by June 2013 at an estimated cost of USD 152.75 million, but has not done so thus far. However, CAG also noted that there were no conditions stipulated for the imposition of penalties for a delay in supplies or the delivery of infrastructure services.

http://sputniknews.com/asia/20160728/1043725024/india-boeing-c-17.html

lol CAG has pointed out many discrepancies in many procurement's, CAG is constitutional body which brings into public domain all the expenditures incurred by govt but i found them professionally deficient to ascertain the technical details of the defence deals and many other industrial contracts done by govt

Likewise CAG also pointed out many deficiencies in a recent report tabled in parliament regarding MIG29K which i found was in models delivered in 2012 and was due to stoppage of supplies from Ukraine but CAG painted very grim pictures abt the technical aspects of MIG 29k

so some of the technicals details and reports of CAG must be taken with some spoons of salt

Pinto wrote:lol CAG has pointed out many discrepancies in many procurement's, CAG is constitutional body which brings into public domain all the expenditures incurred by govt but i found them professionally deficient to ascertain the technical details of the defence deals and many other industrial contracts done by govt

Likewise CAG also pointed out many deficiencies in a recent report tabled in parliament regarding MIG29K which i found was in models delivered in 2012 and was due to stoppage of supplies from Ukraine but CAG painted very grim pictures abt the technical aspects of MIG 29k

so some of the technicals details and reports of CAG must be taken with some spoons of salt

Fair enough the headline may be a bit OTT but these do seem to be a couple of easily identified systems, just hope the money wasn't paid in advance.

JohninMK wrote:

Pinto wrote:lol CAG has pointed out many discrepancies in many procurement's, CAG is constitutional body which brings into public domain all the expenditures incurred by govt but i found them professionally deficient to ascertain the technical details of the defence deals and many other industrial contracts done by govt

Likewise CAG also pointed out many deficiencies in a recent report tabled in parliament regarding MIG29K which i found was in models delivered in 2012 and was due to stoppage of supplies from Ukraine but CAG painted very grim pictures abt the technical aspects of MIG 29k

so some of the technical details and reports of CAG must be taken with some spoons of salt

Fair enough the headline may be a bit OTT but these do seem to be a couple of easily identified systems, just hope the money wasn't paid in advance.

well bro payments is made once contract is signed but not all in advance, rest of the payment is made as per the delivery schedule in stipulated time of completion of orders

The Indian Defence minister Parrikar and his US counterpart were referring to Logistics Exchange Memorandum of Agreement (LEMOA) that was signed by the two countries on Monday.



The defence pact signed by India and the US facilitating logistical support between the two militaries is not an agreement to set up bases, Defence Minister Manohar Parrikar and his US counterpart Ashton Carter have said.

Parrikar and Carter were referring to the Logistics Exchange Memorandum of Agreement (LEMOA) that was signed by the two countries on Monday after more than a decade of discussion.

“There is no provision for any base or any sort of activities to set up a base in India,” Parrikar told reporters at a joint news conference with Carter after the two leaders held talks at the Pentagon.

LEMOA facilitates the provision of logistical support, supplies, and services between the US and Indian militaries on a reimbursable basis, and provides a framework to govern them.

This may include food, water, billeting, transportation, petroleum, oils, lubricants, clothing, medical services, spare parts and components, repair and maintenance services, training services, and other logistical items and services.

“It (LEMOA) doesn’t have anything to do with the setting up of base. It’s basically logistics support to each other’s fleet, like supply of fuel, supply of many other things which are required for joint operations, humanitarian assistance and many other relief operations.

“So, it basically will ensure that both navies can be supportive of each other in the joint venture operations we do, exercises we do,” Parrikar told reporters in response to a question.

LEMOA is a very substantial enabler of the two countries to work together, the US Defence Secretary said.

“What it does is make possible and make easier operating together when we choose to. It doesn’t by itself — those agreements — those are the things that the two governments would have to agree on a case by case basis. But when they do agree, this is an agreement that makes it all go so much more smoothly and efficiently,” Carter explained.

“It is fully mutual. In other words, we grant one another completely equal access and ease under this agreement. It’s not a basing agreement of any kind, but it does make the logistics of joint operations so much easier and so much more efficient,” he said.

This agreement only provides an additional means to fund necessary support and requires the approval of both countries on a case-by-case basis.
For example, during a bilateral exercise with the US, the participant country’s unit requires fuel for its equipment.

The unit cannot make the purchase unless it can pay directly and immediately.

A LEMOA agreement allows for the purchase by establishing a value for the purchase and the terms for payment, which could be replacement-in-kind or an equal-value exchange, Carter said.

http://indianexpress.com/article/world/world-news/indo-us-logistic-pact-is-not-agreement-to-set-up-bases-says-manohar-parrikar-ashton-carter-3003303/

They say it won't be about creating bases, but this is first step to it. US has a tendency to slip those things in afterwards. What will ultimately concern Russians that may force them to abandon plans in selling them and cooperating in military tech with India, is that it will be compromised since US has a history of making their way into sensitive areas to take pictures and such. They did this even in Russia at NAPO plant. That of course was dealt with.

At this point, India is a security threat to both China and Russia. Effectively also destroyed BRICS.

Good job Indians for screwing up this hard.

NEW DELHI: The United States and India have signed an agreement that allows access to each other's military bases for repairs and resupplies.

Here is your 10-point cheat-sheet to this big story:

1. Defence Minister Manohar Parrikar and his counterpart US Defense Secretary Ashton Carter sealed the agreement yesterday in efforts to strengthen defence ties to counter concerns over China's growing military assertiveness.

2. Mr Carter said the agreement would make joint operations between their militaries logistically easier and more efficient.

3. Both he and Defence Minister Parrikar stressed that the new agreement does not allow for US bases to be set up on Indian soil nor for troops to be stationed there.

4. Washington has increasingly turned its focus to Asia as it tries to counter China's growing assertiveness in the South China Sea, and is eager for India to play a greater role in its network of regional defence alliances.

5. The agreement will allow the Indian and U.S. navies to have an easier time supporting each other in joint operations and exercises and when providing humanitarian assistance, said Defence Minister Parrikar.

6. Washington's desire for deeper security cooperation with India had been complicated without the signing of the logistics agreement as well as two other pacts that would allow for secure communications and the exchange of nautical and other data.

7. These agreements that Delhi has just signed are considered routine between the United States and its other defense partners.

8. But India has had concerns that such an agreement would commit it to hosting U.S. troops at its bases, or draw it into a military alliance with the United States and undermine its traditional autonomy.

9. Mr Carter has made closer military ties with India a priority, and established a special unit within the Pentagon last year to promote cooperation with that country. Mr Parrikar's visit to Washington this week marks the sixth interaction between the two top defense officials.

10.What the signing of this shows is that the Modi government is willing to take and suffer the short-term political criticism of signing these things for the longer-term benefit of building the defense relationship with the United States, " said Benjamin Schwartz, until last year the India country director at the Pentagon.

Pinto wrote:NEW DELHI:  The United States and India have signed an agreement that allows access to each other's military bases for repairs and resupplies.

Here is your 10-point cheat-sheet to this big story:

1. Defence Minister Manohar Parrikar and his counterpart US Defense Secretary Ashton Carter sealed the agreement yesterday in efforts to strengthen defence ties to counter concerns over China's growing military assertiveness.

2. Mr Carter said the agreement would make joint operations between their militaries logistically easier and more efficient.

3. Both he and Defence Minister Parrikar stressed that the new agreement does not allow for US bases to be set up on Indian soil nor for troops to be stationed there.

4. Washington has increasingly turned its focus to Asia as it tries to counter China's growing assertiveness in the South China Sea, and is eager for India to play a greater role in its network of regional defence alliances.

5. The agreement will allow the Indian and U.S. navies to have an easier time supporting each other in joint operations and exercises and when providing humanitarian assistance, said Defence Minister Parrikar.

6. Washington's desire for deeper security cooperation with India had been  complicated without the signing of the logistics agreement as well as two other pacts that would allow for secure communications and the exchange of nautical and other data.

7. These agreements that Delhi has just signed are considered routine between the United States and its other defense partners.

8. But India has had concerns  that such an agreement would commit it to hosting U.S. troops at its bases, or draw it into a military alliance with the United States and undermine its traditional autonomy.

9. Mr Carter has made closer military ties with India a priority, and established a special unit within the Pentagon last year to promote cooperation with that country. Mr Parrikar's visit to Washington this week marks the sixth interaction between the two top defense officials.

10.What the signing of this shows is that the Modi government is willing to take and suffer the short-term political criticism of signing these things for the longer-term benefit of building the defense relationship with the United States, " said Benjamin Schwartz, until last year the India country director at the Pentagon.

Point 7 is nonsense, something "routine" wouldn't require an agreement to be signed.

Point 8 go's nowhere, except pointing out that those concerns weren't heeded at all.

point 10 looks like India needs to learn the "benefits" of such a relationship the same way the Kurds did.

WASHINGTON: The defence pact signed by India and the US facilitating logistical support between the two militaries is not an agreement to set up bases, Defence Minister Manohar Parrikar and his US counterpart Ashton Carter have said.

Mr Parrikar and Mr Carter were referring to the Logistics Exchange Memorandum of Agreement (LEMOA) that was signed by the two countries yesterday after more than a decade of discussion.

"There is no provision for any base or any sort of activities to set up a base in India," Mr Parrikar told reporters at a joint news conference with Mr Carter after the two leaders held talks at the Pentagon.

LEMOA facilitates the provision of logistical support, supplies, and services between the US and Indian militaries on a reimbursable basis, and provides a framework to govern them.

This may include food, water, billeting, transportation, petroleum, oils, lubricants, clothing, medical services, spare parts and components, repair and maintenance services, training services, and other logistical items and services.

"It (LEMOA) doesn't have anything to do with the setting up of base. It's basically logistics support to each other's fleet, like supply of fuel, supply of many other things which are required for joint operations, humanitarian assistance and many other relief operations.

"So, it basically will ensure that both navies can be supportive of each other in the joint venture operations we do, exercises we do," Mr Parrikar told reporters in response to a question.

LEMOA is a very substantial enabler of the two countries to work together, the US Defence Secretary said.

"What it does is make possible and make easier operating together when we choose to. It doesn't by itself - those agreements - those are the things that the two governments would have to agree on a case by case basis. But when they do agree, this is an agreement that makes it all go so much more smoothly and efficiently," Mr Carter explained.

"It is fully mutual. In other words, we grant one another completely equal access and ease under this agreement. It's not a basing agreement of any kind, but it does make the logistics of joint operations so much easier and so much more efficient," he said.

This agreement only provides an additional means to fund necessary support and requires the approval of both countries on a case-by-case basis.

For example, during a bilateral exercise with the US, the participant country's unit requires fuel for its equipment.

The unit cannot make the purchase unless it can pay directly and immediately.

A LEMOA agreement allows for the purchase by establishing a value for the purchase and the terms for payment, which could be replacement-in-kind or an equal-value exchange, Mr Carter said.

http://www.ndtv.com/india-news/indo-us-logistic-pact-is-not-agreement-to-set-up-bases-manohar-parrikar-1451987

he Armies of India and the United States are all set to flex their muscles close to the India-China land border, just three months after Indian Navy sailed through the South China Sea in an affirmation of freedom of navigation in international waters. A total of 225 US Army soldiers are landing at Chaubuttia in Uttarakhand to start the two-week-long joint exercise called Yudh Abhyas, from 14 September. This is the 12th edition of the India-US joint exercise and the first in an area close to the border with China.

“Interconnectivity and interdependence are the new global order, interoperability and jointness as being applied in Exercise Yudh Abhyas 2016 are the new military essentials,” Lt Gen Balwant Singh Negi, GOC in C Central Command, told The Sunday Guardian.

India’s military and strategic ties with the United States are growing rapidly. The Logistics Exchange Memorandum of Agreement (LEMOA) signed between US Defense Secretary Ashton Carter and his Indian counterpart Manohar Parrikar just a couple of weeks ago was a major step to curb firepower from likely threats. LEMOA has created a formal platform between India and the US to mutually use each other’s military bases and other facilities. With a trilateral joint exercise called Malabar involving Indian, US and Japanese Navies in June this year, India had sent a strong message to China that it would not allow any country to control the South China Sea. Yudh Abhyas is an extension of the same message of freedom from fear of threat by forces inimical to democracy and forces backing terrorism.

Lt Gen Rajan Ravindran, Chief of Staff, HQ Central Command, told this newspaper, “Exercise Yudh Abhyas-2016, the Indo-US joint exercise is a giant step for the armies of two great democratic nations to train and gain from each other’s rich operational experiences.”

Yudh Abhyas will be the first India-US exercise after LEMOA came into existence. The Chaubuttia military station near Ranikhet is situated just over 100 km away from the India-China border. Yudh Abhyas will start with the unfurling of the national flags of India and the US, apart from the playing of the two countries’ national anthems, Jana Gana Mana and the Star Spangled Banner, respectively. The US contingent will have soldiers from the 5th Infantry Regiment, 2nd Stryker Brigade combat team and 7th Infantry Division of the US Army, while an equal strength of 225 soldiers from the Indian Army will be from the 14th Battalion of the Garhwal Rifles and the 12thBattalion of the Madras Regiment. 14 Garhwal Rifles will engage US Army soldiers in command post exercises and 12 Madras Regiment in field exercises.

An official from the US embassy told The Sunday Guardian, “Yudh Abhyas will be an excellent opportunity for US and Indian forces to share tactics, techniques, procedures and operational experiences. Yudh Abhyas is also an opportunity to broaden US-India military cooperation and enhance interoperability. The US side sincerely appreciates the excellent hospitality and amazing logistics support provided by the Indian Army in the lead up to the exercise.”

Yudh Abhyas has been strategically planned by the Ministry of Defence keeping in mind the features of the Line of Control, which India shares with Pakistan and the Line of Actual Control, which India shares with China. The exercise will be conducted in the heavily forested areas of Chaubattia, where the heights range from 6,000 feet to 8,000 feet. The exercise will begin with a difficult march of approximately 6 km with complete battle loads of almost 30 kg on each soldier. Then the soldiers of both the Armies will familiarise themselves with each other’s organisational structures, weapons and tactical drills. To simulate a counter insurgency and counter terrorism environment, the tactical part of the exercise will include “raid, cordon and search” operations, with the emphasis on using state of the art equipment for surveillance, tracking and identification of terrorists, using specialist weapons, sensing and neutralising IEDs and establishing effective communications. In the last three days and two nights of Yudh Abhyas, the validation exercise will be conducted with troops being inducted by helicopters into a notional hostile area. The drill will be followed as per the UN mandate and both militaries are looking forward to the exercise.

However, authoritative sources said that “There is no question of China being the focus, it is only because of geographical features and logistics that the region around Ranikhet was chosen for this long-planned exercise.” They add that “It is the policy of both the US and India to seek to have a friendly and cooperative relationship with a major trading partner, China.”

http://www.business-standard.com/article/economy-policy/oman-s-sohar-port-comes-looking-for-investments-116091000242_1.html

NEW DELHI: India and the US are planning to go in for a major upgrade of their bilateral combat exercises after inking the military logistics pact+ last month in tune with their "joint strategic vision" for the Asia Pacific and the Indian Ocean Region.


Defence ministry sources say the aim is to "further increase the scope and complexity" of bilateral military exercises and engagements "across the board", which will now be facilitated by the Logistics Exchange Memorandum of Agreement (LEMOA) inked during defence minister Manohar Parrikar's visit to the US on August 29-30.


India, of course, is willing to further tighten the strategic clinch with the US, which has already bagged Indian defence contracts+ worth $15 billion just since 2007. But New Delhi remains reluctant to join any formal tri-lateral or quadrilateral security axis to counter China in the Asia Pacific or act as a "linchpin" in the ongoing "re-balance" of US military forces to the region.


"But we can learn a lot from the high-tech US armed forces in the exercises, ranging from complex mission planning and execution to operating in an increasingly digitised warfare environment. Conversely, they can learn from our battle and insurgency-hardened forces. LEMOA will further boost the interoperability," said an official.

After the upgrade in the annual top-notch Malabar naval war-games+ between India and the US, with Japan becoming a regular participant, for instance, the two countries are now kicking-off Navy-to-Navy discussions on anti-submarine warfare and submarine safety as well as a maritime security dialogue. Navy chief Admiral Sunil Lanba, incidentally, is currently in the US for a sea power symposium.


On the land combat front, the plan is to "evolve" the Yudh Abhyas exercise into "a more complex, combined arms, divisional-level exercise". The 12th edition of Yudh Abhyas is currently underway at Chaubatia in Uttarakhand, with over 225 troops from each side honing their combat skills, as was earlier reported by TOI.

While infantry soldiers and Stryker combat teams from Fort Louis in the US are taking part in the exercise, India has fielded troops from the 12 Madras Regiment. Though the main focus is on counter-terrorism drills involving "a combined deployment at a brigade-level", deliberations are also slated on "air-ground integration, combined arms maneuver and targeting processes".

Similarly, the IAF is also going to step up its engagement with the USAF after taking part in the iconic Red Flag exercise at Alaska in April-May with eight Sukhoi-30MKI and Jaguar fighters, two IL-78 mid-air refuellers and two C-17 Globemaster-III strategic-lift aircraft.


Interestingly, at a time when the first-ever military exercise between Russia and Pakistan is creating waves in the region, around 250 Indian troops from the Kumaon Regiment are also now taking part in the Indra exercise with the Russian 50th Motorized Infantry Brigade at the Ussiriysk district of Vladivostok.

Though Russia has been India's long-standing defence supplier since the 1960s, the militaries from the two countries have not exercised with the same intensity as witnessed in the flurry of drills between India and the US over the last decade.

http://timesofindia.indiatimes.com/india/India-US-plan-to-upgrade-their-already-intensive-military-combat-exercises/articleshow/54501492.cms

http://www.hindustantimes.com/india...ms-to-india/story-LdfxpYyEuOYGhtMFFYPrZK.html

The Unites States department of defence awarded Boeing a 81 million dollar contract for the supply of 22 Harpoon missile systems to India.

A US defense department release said the weapon manufacturer is being given $81,271,024 (Rs 542 crore approximately) for firm-fixed-price modification to a previously awarded firm-fixed-price contract meant for the procurement of 22 Lot 89 Harpoon missiles and associated containers and components for India under the Foreign Military Sales programme.

The missiles will be manufactured at several places in the United States, with the majority of them being in St Charles, Missouri. Some manufacturing process will also be done in the United Kingdom.

The missiles are expected to be ready in June 2018.

India requested the US government in 2014 for the Harpoon missiles to equip its Shishumar class submarines. The request was made under Foreign Military Sale.

The estimated cost for the consignment is $200 million.

The US Defence Security Cooperation Agency said the weapon system, to be employed on the Shishumar class submarine (Type-209), will provide enhanced capabilities for defence of critical sea lines of communication.

“India has already purchased Harpoon missiles for integration on Indian Air Force’s Jaguar aircraft and Indian Navy’s P-8I maritime patrol aircraft. India will have no difficulty absorbing these additional missiles into its armed forces,” it added.

Sources in the industry said that a contract for the same was signed this June between defence ministries of India and US.

To execute this contract, the US government has to buy the missiles from Boeing to supply to India.