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TRANSFERRING DEFENSE MANUFACTURING TO INDIA: THE NEXT STEP OF GLOBALIZATION

YB WEB DESK. Dated: 1/14/2018 8:30:07 PM

The U.S. Government wants a defense industrial alliance with India. This will start the globalization of the defense industry from the U.S. Lockheed-Martin has already indicated that it wants to increase defense activity in India
The U.S. Government wants to create a defense industrial alliance with India. Manufacturing defense equipment in India, also for export markets. Lockheed-Martin (LMT) is the most likely candidate for first transferring production and maintenance to India and thus benefiting most.
On January 17th, 2017 the Emerging Powers and Future Threats: Implications for the U.S. and Global Defense Industry report was published by the Strategic Studies Institute of the U.S. Army War College. The current industrial base and 2 of the 4 recommendations are interesting:
Alliances also should be constructed with emerging markets where the U.S. shares similar regional security interests. In Asia, these include Japan, South Korea, and India, the first two of which already have strong industrial bases and, combined, are home to 11 of the top 100 global defense companies. It is essential for the U.S. Government, military, and industry to cooperate in seeking foreign markets for defense exports, since governments in other countries are aggressively courting contracts on behalf of their firms. Steep cuts in the UK defense budget, for example, have prompted the British Government to promise that it will help the industry sell its equipment and services abroad, mainly to developing countries such as India and Brazil. While it is difficult to imagine circumstances whereby the United States would want to forge defense industrial alliances with Russia or China, the other four countries would be reasonable options that would further U.S. political, foreign policy, and strategic considerations.
Likewise, developing closer collaboration with India’s Modi government by encouraging industrial cooperation between U.S. and Indian defense firms may serve to reduce Russian influence in that country, which has been particularly strong with respect to the arms trade.