Syllabus
GS Paper 2 – International Relations – Bilateral Relations
Context
Initiative on Critical and Emerging Technologies (iCET) is affected by inherent limitations.
Source
The Hindu| Editorial dated 10th July 2024
The innate limitations in executing iCET
Despite successful discussions between National Security Adviser Ajit Doval and his U.S. counterpart Jake Sullivan in June, structural challenges persist in executing the bilateral Initiative on Critical and Emerging Technologies (iCET).
India –US Defence Ties
India conducts more bilateral exercises with the U.S. than with any other country.
| Key Military Exercises | Participants |
| Vajra Prahar | United States Army Special Forces(SF), Indian Para SF |
| Yudh Abhyas | Indian and U.S. armies |
| Cope India | Air force units from India and the U.S. |
| Malabar Exercise | Naval forces from India, the U.S., Japan, and Australia |
| Tiger Triumph | Indian Army and Navy, U.S. Navy |
Defence Initiatives and Agreements
- Defence Technology and Trade Initiative (DTTI):
- Objective: Promotes co-development and co-production efforts in defence technologies.
- Impact: Enhances technological collaboration and innovation.
- Major Defence Partner (2016):
- Recognition: U.S. acknowledged India as a Major Defence Partner.
- Implication: Facilitates technology sharing to a level commensurate with that of U.S. closest allies and partners.
- Strategic Trade Authorization (STA) Tier I (2018):
- Elevation: India’s elevation to Tier I of the STA license exception.
- Benefit: Facilitates interaction in advanced and sensitive technologies.
- Foundational Agreements:
- GSOMIA (2002):
- Military information agreement.
- Ensures protection of classified information and technology shared between the two countries.
- LEMOA (2016):
- Logistics exchange agreement.
- Framework for sharing military logistics, including refuelling and replenishment.
- COMCASA (2018):
- Communications security agreement.
- Allows the U.S. to supply India with encrypted communications equipment for secure communications.
- BECA (2020):
- Basic Exchange Cooperation Agreement.
- Provides India with real-time access to American geospatial intelligence, aiding in navigation, targeting, and the accuracy of automated systems and weapons.
- GSOMIA (2002):
Cooperation Mechanisms
- Defence Policy Group: High-level dialogue to discuss and steer defence cooperation.
- Military Cooperation Group: Facilitates coordination and collaboration on military matters.
- Defence Technology and Trade Initiative (DTTI) and Joint Working Groups: Promotes co-development and co-production efforts.
- Executive Steering Groups:
- For Army, Navy, and Air Force: Focuses on specific service-related cooperation.
- Defence Procurement and Production Group: Addresses issues related to defence procurement and production.
- Senior Technology Security Group: Ensures security and protection of shared technologies.
- Joint Technical Group: Technical collaboration and exchange of expertise.
About iCET
- The Initiative on Critical and Emerging Technologies (iCET) was announced by India and the U.S. with the aim of enhancing collaboration in critical technologies.
- Officially launched in January 2023, the iCET is managed by the National Security Councils of both countries.
- Initial Areas of Cooperation:
- Six Identified Areas: The initiative initially focuses on six areas including co-development and co-production of technologies.
- Expansion Plans: The cooperation is planned to extend to QUAD , NATO , Europe, and eventually globally.
- Technology Sharing: India is ready to share its core technologies with the U.S. India expects the U.S. to reciprocate by sharing its technologies.
Focus Areas of the Initiative
- AI Research Agency Partnership: Collaboration in artificial intelligence research and development.
- Defence Industrial and Technological Cooperation, and Defence Startups: Joint efforts in defence technology and supporting startups in this field.
- Innovation Ecosystems: Building ecosystems that foster innovation in critical technologies.
- Semiconductor Ecosystem Development: Developing and strengthening the semiconductor manufacturing ecosystem.
- Cooperation on Human Spaceflight: Joint initiatives and collaboration in human space exploration.
- Advancement in 5G and 6G Technologies: Progressing in next-generation communication technologies and adopting OpenRAN networks in India.
- Recent Inclusions: Biotechnology, critical minerals, rare earth mineral processing, and digital technology have recently been added to the focus areas.
Current Focus of iCET in Defence Sector
- GE F-414INS6 Turbofan Engines: Local manufacturing of these engines for the Tejas Mk-II light combat aircraft with around 80% technology transfer to Hindustan Aeronautics Limited, excluding critical know-how related to forging metallurgy discs.
- MQ-9 Reaper/ Predator-B UAVs: Local assembly of 31 UAVs with around 10-15% technology transfer and the establishment of a domestic maintenance, repair, and overhaul (MRO) facility.
- Stryker Infantry Combat Vehicle: Negotiations are ongoing for directly acquiring, license-building, and co-developing this vehicle for the Indian Army under iCET patronage.
Significance of iCET
- Enhanced Cooperation: Central to India-US defence and energy cooperation, enhancing connections between government, academia, and industry.
- Containment of China: Strengthens India’s role as a strategic partner to the U.S. in the Indo-Pacific region to counterbalance China.
- Affordable Technologies: Aims to provide cutting-edge, affordable technologies to the world.
- Strategic and Commercial Alignment: Seen as aligning strategic, commercial, and scientific approaches in technology.
- Quad Grouping Progress: Likely to reflect advancements in the Quad grouping of Australia, Japan, India, and the U.S.
Challenges
- Complex Process: Technology cooperation is complicated by cross-border trade and technological challenges
- Technology Transfer: U.S. defense companies are reluctant to transfer technology developed at high costs.
- Intellectual Property Rights (IPR): Companies zealously guard their IPR, affecting the extent of technology transfer.
- Commercial Motivations: Defense vendors are accountable to shareholders, influencing the quantum of technology they are willing to transfer.
- U.S. Export Control Laws: U.S. export control laws, controlled by the defense industrial complex, restrict the sharing of military technologies via joint ventures.
- Impact on Joint Ventures: These laws can adversely affect meaningful joint ventures with strategic implications for Washington.
- Supply Chain Reliability: Reliable supply chains are crucial to prevent disruptions in agreed areas of cooperation.
- Lack of Funding: R&D Investment: India’s investment in research and development (R&D) is low, at 0.7% of GDP, compared to 2-3% in leading nations.
- Infrastructure and Skill Gap: Advancing technologies need robust infrastructure and a skilled workforce.
- Limited Private Sector Involvement: Greater private sector involvement is needed in R&D despite government initiatives like iDEX.
Way Forward
- Removing Barriers:Address trade and technological issues by removing barriers to cooperation.
- Technology Protection Toolkits to Prevent Leakage: Adapt each other’s technology protection toolkits to prevent leakage of sensitive and dual-use technologies.
- Adapting Regulatory Framework: Establish a dynamic regulatory framework to adapt to technological advancements while ensuring ethical standards and managing risks.
- Clarifying Intellectual Property Rights:Develop clear policies on IPR to provide certainty and encourage investment in R&D.
- Boosting Investment in R&D:
- Incentivizing Investment: Implement policies to incentivize investment in R&D from both public and private sectors.
- Collaboration: Encourage collaboration between industry, academia, and research institutions to leverage expertise and resources.
Conclusion
The success of the iCET remains uncertain due to structural challenges, commercial considerations, and stringent export control laws. The initiative must overcome these hurdles to avoid becoming an exercise in prolonged discussions with limited tangible outcomes.
References
Related PYQ
What is the significance of Indo-US defence deals over Indo-Russian defence deals? Discuss with reference to stability in the Indo-Pacific region. [ UPSC Civil Services Exam – Mains 2020]
Practice Question
Critically evaluate the structural challenges and strategic implications of the India-U.S. Initiative on Critical and Emerging Technologies (iCET). [150 words]