Monitoring the use and any attempted resale of U.S. defense technology to third parties, is a requirement of the U.S. Arms Export Control Act of 1996.
India is looking to strengthen its defense industry by buying U.S. weapons, then manufacturing them at home to supply its own forces and ultimately to export supplies to other countries. “We both have to re-examine policies dealing with exchanging technology”, as per Gates.
US / EU Industry are lobbying India to increase the level of foreign investment allowed in its defense industry to 49 percent from 26 percent. That would let the contractors have more control over joint ventures while giving them greater incentive to transfer proprietary technology, and participate in joint production. This is their pressing demand.
Gates said, India is a “critical partner” of the US on issues from climate change to combating terrorism.
Brigadier(Retired) Sukhwindar Singh
http://www.indiandefenceindustry.com/
(An e-Hub for Indian Defence Industry Ecosystem)
Credit: USIBC and Its News Agencies.
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