. Military Space News .

India to regulate foreign defense JVs
by Staff Writers
New Delhi (UPI) Apr 24, 2012

disclaimer: image is for illustration purposes only

India, which is expected to increase the amount it spends on defense each year, will introduce new regulations on military joint ventures.

The guidelines under consideration will be developed to incorporate foreign direct investment policies utilized for JV defense collaborations in more developed countries working with interested foreign military defense production firms, government sources said.

A key element of the government's proposed policy is to institute security and auditing procedures for JVs and their supply chains to standardize and protect production.

India is striving to increase production by its indigenous defense sector but it still imports more than 60 percent of its military needs.

India's Ministry of Defense said the proposed production guidelines will apply to JVs based on the Ministry of Defense's "threat perception" of JV systems under development, taking into account the technological sensitivity of the JV products.

Justifying the policies, Indian Defense Ministry officials noted that nations like Canada, China, Germany and South Korea tightened defense foreign direct investment policies after the Sept. 11, 2001, terrorist attacks in the United States and introduced politics to oversee foreign direct investments.

Under current Indian legislation, FDI is permitted up to 26 percent in defense-related activities, with JVs required to obtain industrial licenses under terms of the Industries Development and Regulation Act.

That measure stipulates that the JV companies must be majority-owned and controlled by Indian residents and their companies.

Some elements of the proposed regulations are already evident, as defense JVs will have to seek prior separate security clearances from the Home Ministry regarding subsidiaries, directors and any foreign nationals employed on such projects, the Financial Express reported.

India is having little problem attracting foreign defense interest. As of April 20, the Indian government approved 22 FDI proposals worth a total of $112.5 million, after the proposals were cleared following the recommendations of the Foreign Investment Promotion Board at its March 30 meeting, the Finance Ministry said.

Foreign companies expressing an interest in entering India's defense sector include Britain's BAE, the European consortium EADS and U.S. aerospace defense firms Sikorsky and Lockheed Martin, all of which see India as a potential lucrative new market.

The future of such bilateral defense arrangements looks bright for European FDI, as earlier this month the European Union and its External Action Service senior officials told a group of visiting Indian journalists that the European Union has a "rich agenda" with India to which security and counter-piracy have also been added.

Related Links
The Military Industrial Complex at SpaceWar.com
Learn about the Superpowers of the 21st Century at SpaceWar.com

Get Our Free Newsletters Via Email
Buy Advertising Editorial Enquiries


. Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle

Pentagon offers budget compromise to placate states
Washington (AFP) April 23, 2012
The Pentagon has offered to fund more C-130 aircraft for the Air National Guard to placate state governors complaining about proposed budget cuts that scale back fleet and personnel, officials said Monday. Facing growing political pressure in an election year from governors and lawmakers in Congress, Defense Secretary Leon Panetta and Air Force leaders have come up with a compromise that wou ... read more

Russia's new air defense systems: Pantsir to shield S-400

An ABM "Umbrella" with tripple lining

Congress mulls $680M for Israeli Iron Dome

Raytheon Awarded $106 Million for Aegis Radar Work

US Navy Fires Raytheon Griffin Missile From RAM Launcher

S. Korea deploys longer-range missiles against North

US seeks 'restraint' amid India missile plan

Iraq seeks killer missiles, but U.S. wary

Russia to Test Fly First Combat Drone in 2014

Mini helicopters fly autonomously

Panetta dismisses Iran claims on copying US drone

Iran says copying US drone, reveals 'codes'

Fourth Boeing-built WGS Satellite Accepted by USAF

Raytheon to Continue Supporting Coalition Forces' Information-Sharing Computer Network

Northrop Grumman Wins Contract for USAF Command and Control Modernization Program

TacSat-4 Enables Polar Region SatCom Experiment

Raytheon to upgrade US Navy's 20-year-old analog air traffic control radars with modern, digital technology

Robots fighting wars could be blamed for mistakes on the battlefield

Singapore Gulfstreams go operational

Northrop Grumman's Common Link Integration Processing System Ready for Fielding

Brazil-U.S. arms talks break new ground?

India to regulate foreign defense JVs

Finmeccanica boss under investigation for bribery: reports

Pentagon offers budget compromise to placate states

Russians protest Volga River NATO hub

New Pentagon spy agency to focus on Iran, China

Panetta to begin tour of Latin America

Philippines warns neighbours about China

Nanodot-based memory sets new world speed record

Nanocrystal-coated fibers might reduce wasted energy

High-res atomic imaging of specimens in liquid by TEM using graphene liquid cell

Carbon nanotubes can double growth of cell cultures important in industry

Memory Foam Mattress Review

Newsletters :: SpaceDaily Express :: SpaceWar Express :: TerraDaily Express :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News


The content herein, unless otherwise known to be public domain, are Copyright 1995-2012 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement