But India has made it clear that for such proposal to be considered, the manufacturers would have to guarantee completely transfer of technology. This means that the firms should make sure that complete transfer of technology is not struck down by the US Congress. It is to be noted that any transfer of technology by US firms requires approval by the Congress.
The negotiations between the US firms and Indian officials were held as a run up to US Defense Secretary Ashton Carter's visit. India's strong posture in the negotiations is significant because it signals India's reluctance to sign any of the "Foundational Agreements" proposed by the US. These agreements include the LSA (Logistics Support Areement), CISMOA (Communications Interoperability and Security Memorandum of Agreement) and BECA (Basic Exchange and Cooperation Agreement)
Amit Cowshish, former Financial Advisor to the Ministry of Defence notes that the US has signed the foundational agreements with many friendly countries but continues to deny those countries complete access to its technologies:
"India has not out-rightly rejected such agreements. Some negotiations are likely to happen on the LSA. But, it is highly unlikely that it will be signed. The US has strategic motives behind those agreements, mainly using India against China."
India is likely to be extra-cautious while dealing with Carter also because Defence Minister Manohar Parikkar is scheduled to visit China. There is growing perception in India in favour of sustained efforts to repair relations with China. Rupnarayan Das, Director, Research and Information Division, Lok Sabha Secretariat, says:
"In recent years there has been growing strategic partnership between India and the US; particularly in the sector of defence cooperation. This is often interpreted by strategic analysts that it is aimed at China. One can agree with that because obviously China continues to be a threat and India needs to be prepared to face any kind of situation. But, I suggest that while we go for deepening defence strategic cooperation with USA, we should equally engage with China, that is quite essential."
Carter will arrive in India on 10th of this month. Delegation level meeting between India & US is scheduled to be held in New Delhi on 12th during which Carter will meet Defence Minister Manohar Parrikar. Parrikar will leave for his first visit to China on 18th of April.