Less than two weeks after attending the India-US 2+2 dialogue in Washington, Defence Minister Rajnath Singh, on Thursday, reached out to American firms to jointly invest in innovation, manufacturing and maintenance of military software and hardware.
Singh’s fresh pitch to scale up defence ties between the two nations comes in the backdrop of Russia-Ukraine war and growing debate that military inventory should remain balanced in any scenario, keeping the country’s strategic interest in mind.
India’s engagement push appears to have found echo among American defence corporates, which are willing to exploit business possibilities emerging out of global insecurity perpetuated due to stand-off with China and fallout of Russian aggression. A former Pentagon official, who had spend considerable time in Delhi and is now a top executive with Boeing, felt the bilateral relationship has acquired trust.
In the last five years, US firms’ contribution to India’s defence exports to their own country has gone up to $2.5 billion. This accounts for 35 per cent of the total exports during the period. At the 2+2 dialogue, the two nations are said to have explored more areas of mutual cooperation in the defence sector, to increase participation of each other’s companies.
Addressing the American Chamber of Commerce in India (AMCHAM India) through video conferencing during its 30th Annual General Meeting, the Defence Minister stated US firms expanding its presence here is just the beginning of ‘Make in India, Make for the World’.
“..With increasing business, we aspire for increased investments by US companies in India. Making full use of the Industrial Security Agreement, we need to facilitate collaboration & indigenisation of defence technology, and boost the participation of US and Indian companies in each other’s defence supply chains. American companies are welcome to establish manufacturing facilities in India,” Singh told the representatives of AMCHAM India.
The participation of US entities in joint R&D and industrial collaboration with Indian public and private sectors, stressed the Minister, will be important for the success of ‘Aatmanirbhar Bharat’ and further strengthening the US-India relationship.
Heidi Grant, President, Business Development, Defence, Space and Security, Global Services, Boeing, told a news agency in Washington on Wednesday that her company’s investments in India’s aerospace infrastructure, defence capabilities, manufacturing, engineering and services, skill development and innovation, will only continue to grow in the coming years.
On a query over India’s defense needs, Grant hinted at military ties with Russia, by observing that operating different types of equipment from different countries is difficult.
“It’s expensive and logistically challenging managing the infrastructure, part and sustainment. There needs to be a balance, and the US would be a better way to go to fill in those areas or to replace some of those capabilities,” quoted the news agency.
Grant recalled her 2010 stint as Secretary of Air Force for international affairs at the Pentagon to advocate the relationship between the two nations has matured into a "trusted one" in last over one decade.
She believes that “the political and industry alignment and bipartisan support for a strong and growing relationship” has witnessed a “fundamental, transformational shift” and that Boeing is integral to that.
Grant, who along with other Boeing representatives had met Rajnath Singh at the just-concluded India-US 2+2 dialogue, expressed her company’s commitment to “helping build India’s defence aerospace and defense sector and industrial base”.
The dialogue acknowledged the “advanced and comprehensive defense partnership”, which will allow the two militaries to coordinate closely together across all domains.