US may raise price for transferring military technologies to India

A senior Indian official has said that the US new administration, led by President Donald Trump, may demand a higher price for transferring advanced defence technologies to India. 

The Indian government has recently shifted away from direct purchases of finished defence products, opting instead for joint production and development of cutting-edge defence equipment and technologies. Currently, India is in discussions with the US to jointly produce American GE-F414 engines for its Tejas Mark-II fighter jets, with plans to transfer 80 per cent of the technology, valued at approximately $1 billion, Caliber.Az reports via foreign media. 

"The Trump administration will not block such projects, but it may seek a higher price for transferring advanced technologies," the official said. The military cooperation between India and the US is expected to deepen, both bilaterally and in multilateral formats.

"Trump may insist on stronger involvement in the Quad [the Quadrilateral Security Dialogue, which includes Australia, India, the US, and Japan], an area India has resisted so far. The US, Japan, and Australia are particularly keen on this," the source noted.

The US and India have signed several defence contracts totaling $25 billion since 2007. The two sides have recently finalised a deal for the purchase of 31 high-altitude, long-range MQ-9B drones for the Indian Armed Forces.

By Naila Huseynova