By Robert Farley
The U.S. and Indian governments continue to work on at least a couple of proposals to shift production of fighter aircraft from the United States to India. The core problem, as outlined by Aditya Kalra and Sanjeev Miglani, is that U.S. firms worry about the security of their technology. Lockheed Martin and Boeing, in particular, have expressed concern that by taking a minority stake in joint ventures with Indian companies, they will lose control of sensitive military technologies.
Acquisition of technology (especially sensitive defense technology) is a key part of the deal for the Indian government, which has continued to struggle with developing a world-class defense industry. Protection of technology, conversely, is a key demand of U.S. firms considering partnerships in India. As Indian rules limit foreign partners to a 49 percent stake in any joint ventures, the U.S. firms have real concerns.
With respect to the F-16, the technologies in question have matured to the extent that it is unclear how exposed Lockheed Martin is to the risk of technology appropriation. However, the terms of the F-16 deal will set a precedent for future collaboration between U.S. and Indian defense and technology companies. Boeing faces a similar situation with the F/A-18, although some of the technologies associated with the Hornet are more cutting edge.
https://thediplomat.com/2017/09/can-india-and-the-united-states-work-out-the-kinks-for-a-fighter-production-deal/
