On the side-lines of the G20 Summit when Prime Minister Narendra Modi and the US President Joe Biden have a bilateral meeting and issues related to trade, procurement of 31 MQ-9B armed drones, jet engines, cutting edge technology and civil and nuclear liability agreement will be discussed.
Top sources confirmed to Financial Express Online that the two leaders are expected to review the progress made on the high-tech cooperation under the Initiative on Critical and Emerging Technology (iCET), building upon the announcements made during Modi’s previous visit to Washington DC in June.
Global Issues Take the Spotlight
Beyond these economic and technological matters, the meeting provides a platform for the two leaders to address pressing global concerns. These include discussions about the situation in Ukraine, the US-China relations, and the complexities of India-China relations, particularly along the Line of Actual Control (LAC). Furthermore, the India-US nuclear deal and civil nuclear liability agreement will be on the table for deliberation, along with announcements regarding new investments.
Navigating Trade Challenges
Trade-related issues are expected to feature prominently in their talks. The United States has recently withdrawn several World Trade Organisation (WTO) cases against India, while India, in turn, has scaled back tariff increases on certain US commodities. A noteworthy point of discussion revolves around Biden’s keenness to see India participate in the Indo-Pacific Economic Forum’s ‘Trade’ pillar, a prospect that India has been cautious about embracing thus far.
Acquisition of Drones
In a significant development, the Defence Ministry is poised to issue a Letter of Request (LoR) for the acquisition of 31 General Atomic MQ-9B armed drones. These drones are for the Navy, Army, and Air Force. The estimated cost of this procurement is around US$ 3 bn, and will come through the Foreign Military Sales Route. The subsequent Letter of Offer and Acceptance (LOA) will be finalized based on the LoR, outlining equipment specifics and procurement terms.
When will the deal be announced?
According to sources not this week. Most likely when the US President comes in January as the Chief Guest for the Republic Day then it is expected to be formally announced. In the interim all the possible official procedures will be completed.
Addressing Nuclear Concerns
While it has been eight years since the civil nuclear deal that integrated India into the global civil nuclear energy landscape, certain obstacles still impede bilateral cooperation. Chief among these is US apprehension regarding India’s nuclear liability legislation. To address this, the two countries recently announced their collaboration on Small Modular Reactors, seeking alternative pathways to enhance nuclear cooperation.
Jet Engine Manufacturing
During Prime Minister Modi’s visit to the U.S. in June, General Electric (GE) and Hindustan Aeronautics Limited (HAL) inked a memorandum of understanding. This agreement paves the way for the licensed manufacture of the 414 jet engine in India, which is set to power India’s indigenous Light Combat Aircraft (LCA)-MK2. This deal represents a significant technology transfer, with GE sharing critical technologies with HAL. The manufacturing process is expected to commence three years after the contract’s conclusion.
Financial Express Online has reported that the US Congress has already put its stamp of approval, and the contract will be inked soon.