P E R S P E C T I V E

India-US
defence ties
New brothers in arms
The US has opened its technology to India, redefining its relations soured after the 1998 sanctions in the wake of nuclear tests by New Delhi. There is reason for it to take fresh stock, considering India is the biggest arms importer in the world.
By Ajay Banerjee
A joint declaration by India and the US on defence cooperation has sent out multiple strategic signals, promising to place New Delhi at the high table of global decision making.

Umbilical link to Russia
For India to totally shift to US military platforms will not be possible as New Delhi’s ‘umbilical cord’ is still connected to Moscow and may remain so for some decades.

‘Replicate formula for other countries’
Ronen Sen, a career diplomat, has seen the Cold War from both sides of the divide. Accepted as a key person in taking the Indo-US ties to the next level during his tenure as Ambassador to the US between 2004 and 2009, Sen termed the declaration on defence as a symbolic and substantive positive forward movement.

India-US
defence ties
New brothers in arms
The US has opened its technology to India, redefining its relations soured after the 1998 sanctions in the wake of nuclear tests by New Delhi. There is reason for it to take fresh stock, considering India is the biggest arms importer in the world.
By Ajay Banerjee

A joint declaration by India and the US on defence cooperation has sent out multiple strategic signals, promising to place New Delhi at the high table of global decision making.

The US C-130-J Super Hercules aircraft was the first among high-technology items to arrive in India in 2011. When it flew as part of the Republic Day Parade, the significance was not lost.

The recent declaration at the White House in Washington DC by Prime Minister Manmohan Singh and President Barack Obama firmly wiped out any remnants of the Cold War-era suspicion. Once implemented, India will have access to cutting-edge and sophisticated technologies which the US has denied to India. In a first-of-its-kind announcement, the two countries have decided to cooperate in the development, production and research of defence projects.

Barack Obama and Manmohan Singh announced the deal on Sept 27.

Security business India accounted for 12% of all global arms transfers from 2008 to 2012. Russia supplied 79% of these. Russia gets annual arms business from India to the tune of $7 billion. India’s arms spending this fiscal alone Rs 86,740 crore. Since 2007, the US has done defence trade worth $10.4 billion with India.

India, for now, seems to be hedging its options. Maybe the assertiveness stems from having the fattest purse while shopping in the international defence market. The ‘tilt towards the US’ — a phrase denied vehemently by Indian officials — could also be indicative of a middle path, a delicate balance between the US and Russia, a long-time ally and one-time patron.

On its part, the US has ‘reset’ its defence relations with India — an about turn since the stinging May 1998 sanctions imposed after a series of underground nuclear tests by India. One reason for the US to change its policy is the lucrative Indian defence market. As of now, Russia gets the biggest slice out of the annual Indian multi-billion dollar spending. A report of the Stockholm International Peace Research Institute (SIPRI) said in March 2013 that New Delhi was the biggest arms importer of the world. “India accounted for 12 per cent of all global arms transfers between 2008 and 2012. Russia supplied 79 per cent of these,” it said. On an average, Russia gets an annual business from India to the tune of $7 billion from defence sales. India’s spending on capital assets — a large part is for new equipment — this fiscal alone is Rs 86,740 crore (about $14.45 billion).

Member outside G8

A few days after the path-breaking announcement on September 27, US Deputy Secretary of Defence Ashton Carter, speaking at the Center for American Progress in Washington on October 2, said India had been included in the so-called “group of eight” — a term denoting countries allowed unfettered access to technology without export controls. The G-8 members are the US, UK, France, Germany, Italy, Japan, Canada and Russia.

Chinook helicopter is now part of the Indian fleet.

Nandan Unnikrishnan, Senior Fellow, Observer Research Foundation, Delhi, says: “The US wants a genuine strategic relation with India and the recent developments are positive, especially if the US opens up the technology available with it. India will have to carry out reforms in its defence production sector to absorb this technology.”

The Indo-US relations have triggered fresh diplomatic assessments across the world, especially in Moscow, Beijing, Tokyo and Islamabad.

Russia is not happy over the growing Indo-US ties and its senior officials in the past have openly questioned India’s need for US military equipment, especially aircraft supporting US-style transcontinental deployment of forces. China sees this as an axis that, in conjunction with Japan, is aimed at ‘hemming it in’. Pakistan is apprehensive and Japan may see it as a silver lining — its Prime Minister Shinzo Abe had last year suggested a ‘security diamond’, a strategic grouping comprising Japan, India, the US and Australia.

What it means

Two announcements stand out in the declaration which explains the change and its significance. The first is: “The US and India place each other at the same level as their closest partners. This principle will apply to defence technology transfer, trade, research, co-development and co-production for defence articles and services, including the most advanced and sophisticated technology.”

The second is: “The US continues to support India’s full membership in the four international export control regimes which would further facilitate technology sharing.”

As regards the first issue, it has been tasked to a high-level team to work out a joint strategy. But the “most advanced and sophisticated technologies” in the declaration holds the key. The US support to India for getting full membership in the export control regimes would open up technology like never before. For India, it would be a transition from being a social pariah for the US-led NATO grouping to getting a seat at what is perceived as the global high table of decision making in these exclusive nuclear and strategic clubs.

The Missile Technology Control Regime deals with items relevant for missile systems; Australia Group with dual-use items relevant for chemical and biological weapons; Nuclear Suppliers Group with items in nuclear area; and Wassenaar Arrangement with armaments and dual-use items related to conventional armaments. At the Nuclear Security Summit in Seoul in 2012, India had sought membership to these clubs.

National Security Adviser Shiv Shankar Menon and US Deputy Secretary Defence Ashton Carter are tasked to co-chair the trade and technology Initiative. The US has submitted a white paper explaining where India falls within the export system. “It covered several areas from export controls rules to end-use monitoring and to identify proposals for co-production. We have demonstrated we can release sensitive technology to India,” Carter said.

What will change

Till now India has had joint development in defence sector with Russia, France and Israel. Moscow and New Delhi were the first to start off in 1998 when they launched the cruise missile programme for BrahMos. Both countries are looking to jointly produce fighter jets and transport aircraft. India and Israel entered into a joint development programme in 2008 when the Defence Research Development Organisation (DRDO) undertook joint development of missiles with Israel Aircraft Industries for the long-range surface-to-air missile (LRSAM) for the Indian Navy and medium-range surface-to-air missile (MRSAM) for the Air Force — collectively valued at $2.5 billion.

France was the latest entrant in February this year after the two countries announced to jointly develop and produce a short-range surface-to-air missile (SRSAM) at a cost of $5.6 billion.

When India and the US start a programme, the US will be the fourth country on the list. In 2009, the US suggested a few military pacts and said they were ‘foundational’ to access technology and enhance abilities to ‘inter-operate’. India refused to ink them, fearing it would be seen as a pro-US stance. In June 2012, US Defence Secretary Leon Panetta, on a visit to India, rolled back the US insistence. “Not signing them is no barrier to military ties,” he had said.

The pacts were Communications Interoperability and Security Memorandum of Agreement (CISMOA) and Basic Exchange and Cooperation Agreement (BECA) for Geospatial Cooperation. The US said CISMOA would allow the highest information to be provided while BECA would provide the military aircraft India has acquired with the highest technology in terms of navigational capability and targeting.

Bettering ties

The first visible post-Cold War era ‘ice-breaker’ in the India-US defence ties was the sale of the landing platform dock USS Trenton to the Indian Navy in 2007. Since then, the US has done trade worth $10.4 billion. The C-130-J Super Hercules aircraft was the first among high-technology items to arrive in 2011. In 2012, when it flew as part of the Republic Day Parade, the significance was not lost.

India has purchased six C-130-J aircraft, 10 heavy-lift Boeing C-17 Globemaster III, long-range maritime reconnaissance aircraft Boeing P8-I, engines for light combat aircraft and to upgrade IAF’s Jaguar fighter, and engines for warships, besides harpoon missiles and weapon-locating radars. The wheel turned a full circle when Ashton Carter said: “We changed our mindset around technology transfer to India, from a culture of presumptive no to one of presumptive yes”.

In January 2011, the US amended its export administration regulations to remove Indian space and defence related companies from ‘Entity List’ which blacklisted DRDO and ISRO units. In 2012, the US announced its ‘rebalance’ to Asia Pacific — shifting about 60 per cent of all its assets in an arc, starting from Japan in the north and ending in the Indian Ocean. India initially resisted, but then played ball when it realised the strategic gains.

Umbilical link to Russia

Russian-origin T-90 tanks are license-produced in India.

For India to totally shift to US military platforms will not be possible as New Delhi’s ‘umbilical cord’ is still connected to Moscow and may remain so for some decades.

Russia has not lost its long-standing hold in the Indian defence market. It will remain India’s biggest defence partner in dollar-transactions terms for several years. However, US companies will chip away at a larger share of the pie in the coming years and the US will soon be India’s second largest defence equipment supplier.

In the works A joint project to build the fifth generation fighter aircraft, which at $30 billion, is the biggest global defence deal; India aims to have 210 such jets in its fleet after 2022. Development project on for a multi-role transport aircraft to replace the 100-strong fleet of AN-32 medium transport planes. Next version of the hyper-sonic missile. The 40,000-tonne Indigenous Aircraft Carrier — the biggest warship India is building — relies heavily on Russia.

New Delhi and Moscow are building the fifth generation fighter aircraft, which at $30 billion is the biggest defence deal in the world. India aims to have 210 such jets after 2022. A project is also on for a multi-role transport aircraft to replace the 100-strong fleet of Soviet-origin AN-32 medium transport planes. This is in addition to the BrahMos missile and the next version of the hyper-sonic missile.

Two of India’s marquee indigenous projects rely on Russia. Nuclear-powered submarine Airhant came about after Russia virtually hand-held India. At its launch in 2009, Prime Minister Manmohan Singh was candid: “I would like to express our appreciation to our Russian friends for their invaluable cooperation.” It is estimated that Russia helped miniaturise the 83 MW pressured water reactor of the submarine. The 40,000-tonne Indigenous Aircraft Carrier — the biggest warship India is building — also relies on Russia. Its flying complex, including on-deck fighters, MiG 29-K, and related paraphernalia is from Russia.

India’s frontline fighter jet, the twin-engine Sukhoi-30 MKI, is license-produced here, as are T-90 tanks that form the main thrust on the western sector. Other tie-ups include Smerch multi-barrel rocket launchers, radars and anti-tank missiles.

That Russia is not happy was stated publicly for the first time during the biannual aero-India show in Bangalore in February this year. Viktor Komardin, head of the Russian government-owned Rosoboronexport delegation, said: “Russia has virtually created the Indian defence industry but little attention was being given to the contribution of Russia in building India’s capabilities. We are partners, deal with us like partners. Don’t be carried away by chocolates or sweets.”

Diplomatic dexterity

New Delhi is trying to pacify its oldest military ally. Since the turn of events on September 27, the media has asked questions about ties with Russia. External Affairs Minister Salman Khurshid was in Moscow on October 3 and allayed fears about the future of the ties. “There is no reason to think that this time-tested historic relationship, which we consider valuable, may be undermined by anything,” he said.

Air Chief Marshall NAK Browne, addressing a press conference in Delhi on October 4, said: “It is incorrect to say we are leaning left or right. We have a balanced perspective.” He went on to add: “We induct equipment based on its merit. We do not see our acquisition country-wise.”

‘Replicate formula for other countries’

Ronen Sen, ex-Ambassador to the US.

Ronen Sen, a career diplomat, has seen the Cold War from both sides of the divide. Accepted as a key person in taking the Indo-US ties to the next level during his tenure as Ambassador to the US between 2004 and 2009, Sen termed the declaration on defence as a symbolic and substantive positive forward movement.

Talking to the Tribune, Sen said: “It’s a buildup on the 2005 framework.” He was referring to the New Framework for the US-India Defence Relationship signed in 2005 between the then Defence Minister Pranab Mukherjee and the US Secretary of Defence Donald Rumsfeld.

The agreement had established a new subgroup — the Defence Procurement and Production Group.

“The time has come to replicate this formula [of joint research, development and production] for other countries also,” he advised. “The licensed production of military equipment with no transfer of technology has not helped us with technology,” he said, in what was an obvious hint to the Indian licensed production of the clutch of Russian-origin military equipment.

Sen, who was posted to Moscow during the 1971 Indo-Pak war as a special assistant to the then Ambassador DP Dhar, rubbished suggestions that the Indian focus was shifting away from Russia and becoming pro-US. “It just opens up more options for India,” he said.

Incidentally Sen was posted to Moscow when India signed the secret agreement with the Soviet Union “on peace, friendship and cooperation” in 1971.