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US - INDIA
HIGH TECHNOLOGY
COOPERATION
GROUP
© Confederation of Indian Industry
ENVIRONMENT
• PUBLIC SECTOR
• PRIVATE INDUSTRY
• DRDO
• EXISTING FLEET
• PROCUREMENT PROCESSES
© Confederation of Indian Industry
HISTORICAL RECORD
• SHIPS
• SUBMARINES
• AIRCRAFTS
• GUNS
• TANKS
© Confederation of Indian Industry
NEW OPPORTUNITIES
• PUBLIC - PRIVATE PARTNERSHIP
• NEW DEFENCE ACQUISITION PROCESS
• HTCG
• 26% FDI
• R&D
© Confederation of Indian Industry
NSSP IS EXPECTED TO LEAD TO
BUILDING OF A TRANSFORMING
RELATIONSHIP BETWEEN US AND
INDIA. GREATER INDIAN ACCESS TO
RESTRICTED COMMODITIES AND
TECHNOLOGIES, ALONGWITH
ESTABLISHMENT OF WORLD-CLASS
EXPORT CONTROLS BY INDIA,
SHOULD BE THE FIRST STEP IN THIS
PARTNERSHIP
© Confederation of Indian Industry
REGULAR HIGH-LEVEL DISCUSSIONS,
AND BUILDING IN OF RECIPROCAL
OBLIGATIONS, UNDER THE NSSP,
WOULD INCREASE THE CONFIDENCE
LEVELS IN BOTH US AND INDIA. THIS
SHOULD ENCOURAGE BOTH THE
GOVERNMENTS TO INCORPORATE
FURTHER POLICY CHANGES TO
GROW THE PARTNERSHIP
© Confederation of Indian Industry
SMALL STEPS TOWARDS AN
ENLARGED COOPERATION SCENARIO
A REGULAR USER COMPANY OF
AMERICAN EQUIPMENT COULD BE VETTED
LIKE ANY SUPPLIER. HOWEVER, AFTER
VENDOR-VETTING, THE COMPANY NEED
NOT GO THROUGH THE SAME PROCESS
FOR SUBSEQUENT PURCHASES. IT WOULD
BE ‘SOMETHING LIKE A BLUE CHIP’
LISTING. SUCH AN ARRANGEMENT WOULD
BUILD CONFIDENCE IN THE PRIVATE
INDUSTRY.
© Confederation of Indian Industry
A CLEAR NEGATIVE LIST OF ITEMS WHICH
REQUIRE EXPORT LICENSE SHOULD BE
DRAWN OUT AND MADE AVAILABLE TO
INDUSTRIES IN THE US AND INDIA. TODAY,
COMPANIES IN BOTH US AND INDIA
RESORT TO THE DEFAULT POSITION OF
APPLYING FOR LICENSES, ONLY TO FIND,
THAT IN MANY CASES, IT WAS NOT
NEEDED.
© Confederation of Indian Industry
THERE IS A NEED TO CONDUCT
‘OUTREACH’ WORKSHOPS IN INDIA AND
THE US. CII & USIBC COULD WORK OUT
AN ARRANGEMENT TO INITIATE THE
PROCESS AND CREATE A FOCAL POINT
FOR ADVICE, AS A FACILITATION FACILITY
TO ITS MEMBERS.
© Confederation of Indian Industry
COMPREHENSIVE ALL - INCLUSIVE LICENSE
WHILE WE APPLY FOR A COMPREHENSIVE
EXPORT LICENSE, INVARIABLY WE RECEIVE THE
LICENSE ENOUGH IN SCOPE ALLOWING
SUBMISSION OF TECHNICAL BID. WE HAVE TO
GO BACK FOR ANOTHER LICENSE PRIOR TO
DISCUSSION ON TECHNOLOGY TRANSFER AND
POSSIBLY YET AGAIN FOR LONG TERM PRODUCT
SUPPORT. THE LICENSE PROCESS TAKES
SEVERAL MONTHS AND DOES NOT ALIGN WELL
WITH BID DEADLINES. AS ENTIRE INFORMATION
IS PRESENTED AT TIME OF APPLICATION, THE US
AUTHORITIES MAY CONSIDER GRANT OF ALLINCLUSIVE LICENSE.
© Confederation of Indian Industry
WAIVER OF LICENSE WHEN TECHNOLOGY
ALREADY IN USE IN INDIA
IT WOULD TYPICALLY RELATE TO AIRCRAFT
ENGINES AND AERO-DERIVATIVE GAS TURBINES
BASED ON DESIGN OF PARENT AIRCRAFT
ENGINE. AERO DERIVATIVE APPLICATIONS
WOULD INCLUDE SAME TECHNOLOGY USED ON
INDUSTRIAL VARIANTS FOR ALLIED
APPLICATIONS LIKE MARINE PROPULSION AND
POWER GENERATION. THE PROCESS FOR
EXPORT LICENSE IN SUCH CASES MAY BE
EITHER WAIVED OR GRANTED RAPIDLY BASED
ON PRECEDENCE. THIS WOULD LEAD TO
SIGNIFICANT REDUCTION IN CYCLE TIME AND
UNDUE REPETITIVE PROCESSING.
© Confederation of Indian Industry
INFORMATION RISK MANAGEMENT
UNDER US LAWS, THE US COMPANY OUTSOURCING THE
PROCESSES TO INDIA BEARS THE ONUS OF ENSURING
THAT THE INDIAN BPO COMPANY MEETS APPLICABLE
SECURITY AND PRIVACY REQUIREMENTS. FOR THIS, THE
US FIRM HAS TO CONDUCT REGULAR SECURITY AUDITS
OF THE INDIAN BPO FIRM. GIVEN THE GEOGRAPHICAL
DISPERSION IT COULD BE COST-PROHIBITIVE FOR THE
US FIRM TO CONDUCT THESE AUDITS ON ITS OWN.
THEREFORE, THEY ARE INCREASINGLY FOUND TO BE
SEEKING LIAISON WITH INDIAN SECURITY AGENCIES TO
WHOM THEY CAN OUTSOURCE THE SECURITY AUDIT
FUNCTION. HOWEVER, GIVEN THE SENSITIVITY, THE US
FIRM REQUIRES TO BE ASSURED ON THEIR ‘AUDIT
INTEGRITY’.
© Confederation of Indian Industry
WAY AHEAD
• PRIVATE - PUBLIC PARTNERSHIP REPORT IS
TABLED AND APPROVED
• JOINT TEAM : USIBC AND CII PRODUCE A
“HTCG COOPERATION DOCUMENT”
• BEST PRACTICES
• OUTREACH
• EXPORT- IMPORT CONTROL INFRASTRUCTURE
• CONSIDER ESTABLISHMENT OF INFORMATION
SHARING AND ANALYSIS CENTRE (ISAC) TO ACT
AS THE FACILITATION NODAL POINT FOR
IMPLEMENTATION
© Confederation of Indian Industry
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