Tuesday, June 28 2005 09:26 Hrs (IST) - World Time -

Washington: India should be allowed to access all the technologies and Defence equipment it needs, Defence Minister Pranab Mukherjee said yesterday (Jun 27, 2005), pointing out that US is yet to develop a partnership in the Defence industrial sector with New Delhi.

"India should justifiably be allowed to access all the technologies and defence equipment it needs" given its security problems in the conventional and non-conventional fields, Mukherjee told representatives of commerce, industry and banking at Indo-US Business Council in Washington.

There should at least be no moral inhibition on this account, he said.

"We live in a real world of practical people who have to take into consideration factors of real politick," he said, noting that real opportunities of partnership and commerce exist in essentially defensive and non-lethal areas like counter terrorism, surveillance, communication equipment, sensors for border management and devices to neutralise improvised explosive devices.

The overall security scenario, he said, must form the backdrop of Indo-US cooperation.

"Our security needs are to be appreciated in this setting. We have already been forced into four conventional wars since our independence. Unlike the US, we are virtually encircled by nuclear weapon states and we have been living with terrorism for over two decades," he said.

"India also faces the problem of insurgency in certain areas. This list should persuade anyone to appreciate India's security concerns as being real," he said.

Being traditionally non-violent, India has been a victim of aggression, rather than an aggressor.

"The focus of our national endeavour is purely on development. However, India cannot abdicate its right to defend itself and it is in this context that the requirements of its Defence sector need to be seen," Mukherjee said.

"While we should begin modestly," said Mukherjee, "It is necessary for the US to look seriously at platforms and weapons systems, which in our case may be needed purely for self-defence and deterrence."

There are commercial opportunities for American industry in the sale of equipment and weapons. But India does not look at purely a "buyer-seller" relationship. Such a relationship is surely not "strategic"; it can at best be ad hoc and characterized by fits and starts.

"We are looking for long-term commitment. Therefore, really substantial commercial opportunities will arise from transfer of technology, co-development, co-production, mutual outsourcing and Joint marketing," he said.

Listing India's capabilities in the defence sector, the Minister said Defence acquisition process in India is transparent and an amended version of the procedure has recently been released, which includes a provision for offsets against large Defence contracts.

"We have some claims to being a force to reckon with in the field of information technology. With this infrastructure and human resource, India can prove to be an excellent base for the US Defence industry, for provision of repair, overhaul, maintenance and servicing facilities," he said.

He said India can become a centre for regional distribution and services.

The opening up of the aviation sector would provide an excellent opportunity for leading US companies to enter into partnerships with established Indian companies like Hindustan Aeronautics Limited (HAL) and Bharat Electricals Limited (BEL) for repair, overhaul, maintenance and other services, Mukherjee said.

However he said there are impediments in this path towards greater cooperation that need to be addressed.

On the US side, he said, it is important to demonstrate that the US industry will be a reliable partner.

"In the past, there have been serious apprehensions regarding long-term product support and its sustainability."

There had been problems in securing requisite interagency and Congressional approvals. "I understand that many restrictions have since been removed," said Mukherjee.

"While we have mostly dealt with simple items and requirements, the efficacy of the procedures have to be validated while getting approvals for high-end technology."

"It needs to be recognized that we operate in a competitive market," he said, noting that while the US is a good source for state-of-the-art technologies and products, in case these are not available, alternative sources will have to be explored.

Mukherjee said that one has to be realistic even though great opportunities for a long-term, mutually beneficial partnership between the defence industries of the US and India exist.

"We need to remove impediments coming in the way of our natural alliance and join hands to make this world a more secure, peaceful and prosperous place."