US May Get Large Indian Defense Market in Return of Technology Transfer: Army Veteran

In return for the transfer of critical weapons technology to New Delhi, the Americans will get India's large defence market to sell their products, according to a former Indian Army veteran, who served in the force for more than three decades.

Major General (Retd.) Shashi Bhushan Asthana, a veteran of the Kargil war, added that in the long term, Washington is vying to dislodge Russia as India's largest supplier of military equipment.

As of now, the US occupies third place behind Russia and France as the leading suppliers of arms and ammunition to India.

New Delhi is the world's largest purchaser of defence equipment, having a share of 11 per cent in global arms purchases.

"Hence, the US will get a large defence market to sell their products", Asthana told Sputnik on Thursday.

"But as far as the strategic autonomy of India is concerned, I don't think the US will attempt to disturb that nor will New Delhi let Washington take away its strategic autonomy", the defence analyst stated, before adding that this did not happen during the advent of the Ukraine crisis and will not happen in the future.

He noted that Russia is currently the No.1 supplier of defence products to India, followed by France.

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But if all the deals being negotiated during Prime Minister Narendra Modi's state visit to the White House are finalized, Washington will become the No.2, replacing Paris.

However, Asthana contended that the US dislodging Russia from the No.1 spot to emerge as the largest exporter of weapons to New Delhi may take a long time.

"I don't visualize this happening. Firstly, because the bulk of our equipment is Russian-built and secondly, India is trying to become self-reliant. We are attempting to reduce buying weaponry from everyone - whether it is America, France, or Russia", the ex-Indian military officer emphasized.

Speaking on the subject of the US transferring technology of vital defence platforms to India, Asthana reckons that they will share a fair amount of technology, but there will be costs.

This is because when one negotiates with any country, the transfer of technology (ToT) cost is added to the induction cost of the equipment. So, the cost without the transfer of technology is much less than the cost with the transfer of technology.

"No country gives 100 per cent transfer of technology. So by and large, they normally give 80 per cent of ToT, that's what perhaps the US is promising. There are a few things where they feel technological absorption may be difficult. So, there is always some part of ToT which is of sensitive technology that is not shared", he mentioned.

Asthana stressed that the actual percentage of transfer of technology between India and the US will depend on every piece of equipment and the kind of negotiations.

"That's why we cannot give a blank answer to whether the US will share ToT or not. It will likely be based on individual negotiation for individual equipment", Asthana concluded.

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