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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

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Presentation Transcript
slide1

US - INDIA

HIGH TECHNOLOGY COOPERATION GROUP

© Confederation of Indian Industry

slide2

ENVIRONMENT

  • PUBLIC SECTOR
  • PRIVATE INDUSTRY
  • DRDO
  • EXISTING FLEET
  • PROCUREMENT PROCESSES

© Confederation of Indian Industry

slide3

HISTORICAL RECORD

  • SHIPS
  • SUBMARINES
  • AIRCRAFTS
  • GUNS
  • TANKS

© Confederation of Indian Industry

slide4

NEW OPPORTUNITIES

  • PUBLIC - PRIVATE PARTNERSHIP
  • NEW DEFENCE ACQUISITION PROCESS
  • HTCG
  • 26% FDI
  • R & D

© Confederation of Indian Industry

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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

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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

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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

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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

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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

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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 ALL-INCLUSIVE LICENSE.

© Confederation of Indian Industry

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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

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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

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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