India, US close to inking industrial security pact

India and the US are inching towards inking an industrial security pact that will unlock access to key defence technologies for the Indian industry, with officials saying the agreement could be finalised within a couple of months.

The Industrial Security Annex (ISA) will add to existing agreements on protection of classified military information and is critical for any transfer of technology by a US firm to its Indian partners. The draft of the annex has been circulated and is likely to get Cabinet clearances in the coming weeks, following which the bilateral agreement will be signed.

While several US companies including Lockheed Martin and Boeing are already working on defence products with Indian partners — mostly to meet offset obligations — the projects are primarily of the ‘build to print’ kind that do not involve transfer of key technology, officials explained.

Once signed, the ISA will enable transfer of key high end technology pieces that are regulated under US law. The pact is also expected to enable the floundering India US Defence Technology and Trade Initiative (DTTI) that was signed in 2012 but has not resulted in any major project on the ground yet.

Sources said that the ISA will involve Indian government assurances on the safety and security of technology against transfer and access to third parties. Once operational, US companies wishing to transfer technology to India will be able to do so through the government route. Sources explained that for critical technology, US companies will submit documentation to the US government that will share it with their Indian counterparts through diplomatic channels.

This technology piece will then be sent to the Indian industry by the government which will first satisfy itself that adequate safeguard mechanisms are in place for its protection. The ISA will be vital for US companies to participate in all upcoming Make in India projects like the 110 fighter jet deal and the requirement of 111 Naval Utility Helicopters that are currently being processed under the Strategic Partnership (SP) model.

While the ISA will require cabinet level clearances, it is an add on to the General Security Of Military Information Agreement (GSOMIA) that was signed in 2002. India and US have already signed the COMCASA.

economictimes