Defence Minister A.K. Antony shaking hands with US Secretary of Defence Leon Panetta

US Secretary of Defence Leon Panetta with A.K. Antony full of smiles

Defence Minister Antony presenting a momento to the US Defence Secretary Panetta

US Defence Secretary Panetta recieving a marble artefact from Antony

On the back of a slew of high value defence deals with the US, India has conveyed that it is no longer interested in remaining in a buyer-seller relationship, and will exercise its rights as a customer to get the technologies that it needs. The US Secretary of Defence Leon Panetta met his Indian counterpart A.K. Antony on Wednesday morning for an hour, a meeting where Antony is said to have said in no uncertain terms that military trade needed to move beyond simply the transfer of equipment.

In a statement, the MoD said, "During the discussion of the defence trade, Antony emphasised that the priority for India is to move beyond the buyer-seller transactions and to focus on transfer of technologies and partnerships to build indigenous capabilities. The US Secretary of Defence assured the Indian side that the US Government will initiate measures to facilitate technology access and sharing."

While the US lost the monumental MMRCA competition, it has still managed to shore up deals worth billions with India in the last decade. Big ticket items include C-130J Super Hercules transports, P-8I maritime reconnaissance jets and the single largest deal yet for 10 C-17 Globemaster III heavylift transports. Other smaller deals have included Harpoon Block II anti-ship missiles, CBU-105 sensor fused munitions and torpedos for the Navy. While most of these deals have included offset commitments, none involve the transfer of technology—certainly nothing that is meaningful to Indian indigenous capabilities. It is India's intention that enough deals have been struck to give India a bargaining chip with Washington for technology, and these could include deals that are expected to be awarded to the US, but haven't been concluded yet. These include contracts for 15 heavylift helicopters (Boeing CH-47 Chinook), 22 medium-attack helicopters (Boeing AH-64D Block III Apache Longbow), new engines for the IAF's Jaguars (Honeywell F125IN) and for six more C-130Js.

MoD sources say the Indian military-industrial complex is ripe for an infusion of fresh technology, and the opportunity hasn't been lost on planners in South Block. Coupled with the projection that India, as a stabilising, mature force in the region, cannot be seen to be a customer like Turkey or Pakistan, has compelled the new paradigm. Secretary Panetta on his part assured Antony that every effort would be made to meet India's technology demands.

Interestingly, even though the actual subject didn't arise, India continues to resist three crucial agreements—the Logistics Support Agreement (LSA), Communications Interoperability and Security Memorandum of Agreement (CISMOA) and BECA—that the US has consistently insisted are required for access to advanced technologies, including encrypted communications, electronic warfare equipment, sensors and source codes.

US Secretary of Defence Panetta with his Indian counterpart Antony	Defence Minister Antony with US Defence Secretary Leon Panetta and his wife Sylvia Panetta
Defence Minister Antony in conversation with US Defence Secretary Panetta	US Defence Secretary Panetta on the way to inspect the guard of honour