Washington, July 21 (Inditop.com) Eyeing high-value deals with India, including the over $10 billion contract for 126 multi role fighter aircraft, the main business lobby for India said the agreement finalised in New Delhi duirng the visit of Secretary of State Hillary Clinton will enable defence and security trade between the countries “as never before”.
Welcoming the End Use Monitoring agreement between the two countries, the US India Business Council (USIBC) noted that “India has budgeted as much as $40 billion through 2012 to procure ‘best technologies’ for the upgrade of its defence establishment” and said the agreement “will enable defence and security trade between the US and India as never before.”
The agreement will also “facilitate the participation of US companies in supporting India in transforming its military and homeland security apparatus,” it said.
“While successful completion of EUM negotiations is a positive step in the right direction,” USIBC said on the top of its agenda is raising India’s FDI cap in defence to 49 percent.
The trade advocacy group said it also aimed at “successfully refining India’s Defence offset requirements so American firms can provide full value to India’s goal of modernising defence production and building-out India’s prowess in Defence manufacturing.”
End Use Monitoring, required under US law, is a strong indication of President Barack Obama’s commitment to the US-India strategic partnership, which is now achieving tangible and concrete traction, USIBC said.
“Agreement on EUM, besides opening the door to increased defence trade and security cooperation, indicates a high level of trust and cooperation between the United States and India,” USIBC President Ron Somers said.
“Agreement on EUM language signals that both the United States and India are looking to share the latest and best American technology and systems.”
USIBC said Lockheed Martin and The Boeing Company stand to be beneficiaries of the agreement as both companies are competitively bidding for India’s Medium Multi-Role Combat Aircraft (MMRCA) tender, valued at more than $10 billion.
One of the largest fighter aircraft deals on the horizon anywhere, this procurement by India “will upgrade the paradigm in relations between US and Indian Defence companies,” the trade group said.
Lockheed and Boeing are competing in this procurement against Russia’s MIG-35, France’s Dassault Lockheed Rafale, Sweden’s Saab Gripen and the Eurofighter Typhoon.
The EUM Agreement with India will also enable other US Defence companies to be more proactive in participating in India’s Defence and security market, providing the Indian government a range of high-end technology and Defence items ranging from helicopters to reconnaissance aircraft, as well as night vision gear to border protection equipment, USIBC said.
“In the wake of the tragic terrorist attacks in Mumbai, the United States Defence industry looks forward to working closely with India to enhance its domestic security structure by providing the latest high-end equipment and services,” said Ron Somers.
“A successful EUM conclusion ensures continued support and cooperation between our two countries in this sensitive, strategic sector.”
