India and United States Achieve Consensus. July 20, 2009 – Washington, DC – “In a significant step that puts decades of Cold War baggage behind the world’s two largest democracies, the United States and India have achieved consensus on a key bilateral agreement that promises to bolster the U.S. and India as reliable partners for the long future in the sensitive areas of defense and security trade.”

India Positioned to become Key Defense Market. “India is positioned to become a key defense market and a future market player, However, to achieve this position and to hold pace with rivals like China who are outspending India by ratios around 5:1, India will have to improve its defense industry and acquisition process.”

India budgets $40 billion for ‘Best Technologies.’ “To meet its defense-equipment needs India has to look abroad to foreign defense equipment suppliers. India has budgeted as much as $40 billion through 2012 to procure ‘best technologies’ for the upgrade of its defense establishment”. The recent “End Use Monitoring” agreement between the US and India will enable defense and security trade between the two countries as never before.”

India Defense Budget Highest in History. The growth of India’s defense budget by more than 34% for 2009 -10 is one of the highest in the country’s defense spending history. The refining of India’s defense offset requirement will enable American firms to lend their capabilities to India’s defense production and proficiency in defense manufacturing. India’s large industrial base will benefit from the offsets program in the development of its technical and manufacturing potential while driving investment in domestic R&D.

U.S. Offsets Destined for India Defense Industry. The United States, currently the largest arms exporter in the world is also one of the major providers of offsets, a common feature of international arms trade. Offset obligations of the U.S. defense industrial base can be met through investment in India’s defense industry infrastructure, including defense R&D. This can lead to Joint Ventures, co-development and co-production of defense items. Offset obligations can also be met through the purchase or execution of export orders for defense goods and services produced by Indian defense enterprises both in the public and private sectors.

“India and U.S. Export Controls” offers an in-depth understanding of U.S. Export Controls and their Impact on Indian companies who engage or plan to engage in the retransfer or re-export of U.S. controlled products. The two day conference explores the reach of U.S. controls on commercial and military products and technology under the International Traffic in Arms Regulations (ITAR) and the Export Administration Regulations (EAR). It’s important that Indian companies involved in defense trade with the United States understand the civil and criminal penalties, fines, and loss of privileges that can result from non-compliance with U.S. export controls rules and regulations. Both the novice and the veteran can benefit from this essential training, which incorporates the expertise of former U.S. Department of State and Department of Defense senior officials with substantial U.S. Government and defense industry working experience. Learn from experts how to implement successful internal compliance processes and programs that are essential to best commercial business practices.