At the second INDUS-X (Defence Acceleration Ecosystem) summit in February 2024, U.S. Ambassador Eric Garcetti emphasized the need for India and the U.S. to prioritize co-development of military hardware over mere co-production. Garcetti highlighted a crucial strategy that India has recently embraced. Traditionally, Russia and the former Soviet Union were central to India’s science, technology, and innovation (STI) agreements and Russia still remains as a major defense supplier. This longstanding relationship dates back to the Cold War, when the Soviet Union supported India’s technological and industrial development post-independence. Today, while Russia remains a traditional ally, India has diversified its partnerships, notably with the U.S. and European nations. Since being designated a Major Defense Partner by the United States in 2016, Indo-U.S. cooperation has accelerated, including advancements in the fields of semiconductors and artificial intelligence. As of 2024, India has signed STI agreements with 83 countries.
In June
2023, General Electric (GE) and Hindustan Aeronautics Limited (HAL) signed a
memorandum of understanding to co-produce F-414 fighter jet engines in India
for the Tejas Mk2 light combat aircraft. This agreement marked a significant
development in Indo-U.S. defense collaboration, as it involves production of
the engines in India.
Furthermore,
with France, India has recently signed an agreement to co-develop and produce
defence equipment that could be supplied to third countries. The successful
development of BrahMos supersonic missiles in partnership with Russia, which
has seen strong demand globally, is a testament to such partnerships.
Building
similar relationship with neighboring China, however, has proven difficult,
making strong ties with Western and other East Asian nations crucial for
India’s technological progress and autonomy. As trade restrictions and
geopolitically motivated sanctions increasingly impact China and Russia,
India’s role in the new world order becomes ever more significant.
Challenges
At the same
time, bilateral cooperations are not without their challenges. For a long time,
India's deal with General Dynamics to acquire MQ-9B Predator drones has been entangled in bureaucracy.
Reports claimed
the American manufacturer's reluctance to transfer the technology to Indian
firms. Although the deal has been in talks for some time, the controversy
surrounding India’s alleged plot to kill Gurpatwant Singh Pannun further complicated
it. In July 2024, rumors were up in the air that Turkey banned defence exports
to India. Around that time Hindustan Shipyard Limited (HSL) terminated a
contract with a Turkish firm to build five Fleet Support Ships for the Indian
Navy. These complications reflect broader concerns regarding such
collaborations.
Domestically,
government initiatives such as Atmanirbhar Bharat and Make-in-India, along with
policies like the Defence Acquisition Procedure 2020 (DAP), have, to some
extent, boosted local development and manufacturing with an export focus.
Despite the criticism it attracts, Make-in-India has invigorated domestic
entrepreneurship and attracted foreign companies to collaborate with Indian
firms, clearing the initial hurdles for India to become a global manufacturing
hub. However, achieving this vision requires a continued emphasis on research
and development rather than just production.
India’s Dependence
For military
technologies, India still depends on Russia, even as the country shifts towards
U.S. and other alternative partnerships and fosters domestic innovation. Besides
military equipment, India is very much dependent on foreign goods in various
fields. For instance, India imports about 80% of its medical devices from
various countries. This import dependency, however, can be attributed to the
fundamental issues related to the manufacturing sector in India.
In the
emerging technologies like Quantum Computing, India imports most components
from the U.S. and EU. The National Quantum Mission, launched in 2023, marking
India as the seventh nation with a dedicated quantum mission, shows that India
has begun to take the field seriously. With government involvement and heavy
investment in the emerging technologies, India has the potential to become one
of the leaders in the near future. To achieve this, collaboration with nations
having technology infrastructure advantage is important. The increasing
collaborations with Japan, Europe and the US are promising, but utilizing
alternative partnerships will only augment India’s technological capabilities while
providing a diverse range of choices in an uncertain world.
For example,
China is rapidly emerging as the global leader in Quantum technology, while
being the leader in Quantum communications. Utilizing the possibility of
cooperation in the Quantum field recently broached within BRICS, India could
benefit significantly and bridge the ‘Quantum Gap’ sooner.
As global
power dynamics become more and more fragmented, maintaining and strengthening
partnerships unaffected by a third party or political whims is crucial for
India. Even amid uncertainties with China, collaboration in science and
technology will not only advance India’s interests but also help build autonomy
in the complexities of U.S.-China rivalry.
Co-development as opposed to Co-production
Co-development involves innovation and design, and offers greater strategic advantages over co-production, which is usually exchange of intellectual properties and production of an already existing product. As co-development involves shared expertise of two or more nations, it benefits all of them equally and is less likely to be marred by domestic or external geopolitical challenges, fostering bilateral relations and technological integration. Examples such as the BrahMos, as mentioned earlier, illustrate the success of co-development and innovation for India. It is important that India seek more such opportunities especially in fields where research and development are necessary but cannot do so alone.
