July 23, 2017
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Grabbing opportunity
The DTTI and India-US defence relations Defence Trade and Technology Initiative (DTTI), if implemented in true spirit, will  add a new dimension to India-US defence relations as it has the potentials of turning the buyer seller relationship into co-producer and co–developer of weapons systems. But the US defence industry is concerned with roadblocks enunciated in Indian FDI policy announced just on the day of US Defence Secretary Chuck Hagel’s arrival in New Delhi. This was pointed out during the Hagel- Jaitley meeting and publicly raised by Hagel during the ORF public lecture, as he sought clarifications from India on the 49 percent FDI limit in joint ventures. However, the US defence industry is enthused by its emergence of top supplier of weapon systems and platforms to India during the last three years surpassing Russia, France and Israel which were the top three defence suppliers in recent years. Since the Indian armed forces are likely to acquire defence systems worth over US$ 100 billion in the next decade, the US defence industry is eager to grab a big chunk of possible acquisitions. However, since Indian defence ministry has in recent years introduced a policy of indigenization in arms industry through the offset limits of over 30 to 50 percent for weapon acquisitions worth over US$ 300 million, the multinational arms companies are gradually adjusting their defence exports policy to India in order to win multi- billion dollar d
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