
[Prime Minister Modi and US President Biden in a deep clinch in Washington]
Prime Minister Narendra Modi’s Munnabhai-type “jaddoo ki jhappi” is what, in my 2018 book (Staggering Forward), I called a “diplomatic innovation”. It has succeeded beyond measure. After close encounters of this kind with the Indian PM, no Western leader has failed to show warmth in return, which gets reflected in the diplomatic successes Modi has enjoyed. For foreign leaders, moreover, what’s not to like about Modi especially if his visits bring in their wake huge defence and technology sales? It is like a rich visiting uncle leaving behind goodies. So, Western leaders have learned heartily to reciprocate with personalised touchy-feely treatments of their own.
The good vibes between India and the US and France is reflected in the windfall deals for the Boeing Company of Seattle and the French Airbus corporation that have led to their order books being filled by private airlines in India. The Tata Company’s Air India’s order of 220 planes worth some $34 billion –10 wide-body B777X planes, 20 wide-body B787 planes, and 190 narrow-body B737MAX planes, with an option for an additional 20 B787s and 50 B737MAXs, and for another 250 aircraft from Airbus — 34 A350-1000s and six A350-900s, and 140 Airbus A320neo, 70 Airbus A321neo for $36 billion. These contracts will keep Boeing and Airbus afloat for the next 40 years at least. Not to be outdone, Indigo, the private sector company accounting for over 30% of the Indian air travel market, placed the single largest order in history — 500 single aisle A320s from Airbus costing $50 billion. This is atop a previous equally humungous order according to which 480 Airbus planes are still to be delivered to Indigo! Civil Aviation Minister Jyotiraditya Scindia justified these deals by saying “India’s flag has to fly in international space”. (https://www.business-standard.com/industry/news/air-india-does-pre-delivery-payment-to-boeing-for-aircraft-cfo-hejmadi-123060900782_1.html).
No one told this poor sap of a minister that almost all the aircraft thus procured by Air India and Indigo will mostly ply the Indian skies. So, for jhanda ooncha rahen hamara in international space, he will have to look elsewhere.
But emphasis on the wrong angle is characteristic of the Indian government, Indian political and industry leaders, government officials, and military officers alike. They all seem incapable of seeing beyond their noses. I have been making this point for some 30 years now that, like China, we should only strike deals for high-worth passenger aircraft as a means to acquire not just select aviation technologies but manufactiring jigs, CAD/CAM, and production skills and competences like process engineering instead of periodically doling out $40 billion here, $50 billion there, and leaving it to the aircraft vendors to throw crumbs at us in exchange — a unit in Hyderabad for MRO (maintenance, repair, overhaul) operations, promises to offtake minor aircraft assemblies (doors, etc.) from Tata factories in India, etc. Instead of acquiring the capacity to produce whole passenger aircraft, New Delhi is satisfied with fractional returns on very large buys abroad.
China instinctively went big from the start, even as the Indian government has not learned the basics of negotiations of getting something very substantial for buying something big. Having taken 10 years to negotiate the first deal, the always strategic-minded China secured in 1985 from the California-based McConnell Douglas aircraft company, a co-production deal for 26 medium haul MD-80 passenger aircraft for around $800 million. Of this order, 25 were to be assembled in China by the Shanghai Aviation Corporation (SAC) and only ONE aircraft was to be bought off the shelf! As part of this transaction, American engineers and technicians were required to be on the SAC factory floor training and skilling Chinese project managers and workers who thus learned on the job from experts. This contract had provisions for the Chinese Company buying out the entire MD-80 production line and wherewithal if increased domestic air travel required it. Soon enough, McConnell Douglas sold off its entire passenger aircraft business to China until now when it produces its own modern, single aisle, passenger aircraft — the Comac C919 to outfit its many domestic airlines.
In contrast India — apna watan — forked over billions upon billions of dollars — as if money was going out of style — for aircraft wholly produced in the US and France that will generate employment and upkeep the aerospace industries in these countries, and there’s no one to ask if Indian private sector airlines should be permitted to cut such deals with hard currency from the national reserves that produce zero returns to the country in terms of aircraft tech and manufacturing technologies.
Hardly to be wondered then that Biden was all solicitous and smiles and laid it on thick when Modi went to the White House a fortnight back. Elated for Boeing, Biden crowed to the press that the Indian order would create a million additional jobs in America. Eager for even more custom this time in the military aviation field and also to tie India’s security to America’s national interests, the US President approved the sale of the GE 414 jet aircraft engine along with the transfer of 80% of its technologies. The 20% non-transferrable constitute critical tech apparently not covered by the iCET (Intiative for Critical & Emerging Technologies) recently inaugurated with much fanfare.
So which GE jet engine is actually on offer? Is it the vanilla 414 model with 98 kiloNewtons of thrust with afterburners that originally equipped the F-18E/F Super Hornet for the US Navy, or the new EDE (Enhanced Durability Engine) variant which can produce 15% more thrust but at the expense of lesser engine life? The EDE’s augmented thrust with afterburner would be 108.7kN, near enough to the 110 kN mark Indian designers have mandated for the Advanced Medium Combat Aircraft and for the naval 2-engined Tejas for aircraft carrier operations. The increased thrust of EDE is due to the second low pressure turbine within the engine made from ceramic composites, which reduces the weight by a third and results in a more robust jet engine with the capacity to operate without the need for cooling air. This last quality, in turn, results in aerodynamics and fuel consumption-wise a more efficient power plant for combat aircraft. Tradeoffs-wise, the EDE makes more sense. Can India wheedle the EDE out of Washington even with the nontransferrable 20% in tact?

[Modi embracing French President Emanuel Macron in Paris]
France is an old hand at this game. No sooner was the GE 414 promised by the US, the ever nimble Quai d’Orsay immediately upped the ante. It promised that its jet engine maker, Safran (the old SNECMA — Société nationale d’études et de construction de moteurs d’aviation) would assist India to design and produce a completely new 110 kN engine in the centre of excellence it intends to establish in India for the purpose. The engine is expected to be ready inside of 10 years and, project wise, be time- and cost-competitive with the GE 414 programme. The bonus is that the Safran deal will be minus the Damocles’ sword hanging over any defence deal with the US — the threat of activation by Washington of the US International Trade in Arms Regulations (ITAR) law, because Paris is not so legally constrained. This is of crucial importance, and was cleverly hinted at by French ambassador Emmanuel Lenain in a recent press interview (Times of India, Junly 1) when he mentioned “sustainability and autonomy” as the prime attributes India seeks to ensure with its foreign defence contracts and which aims, Paris claims, its deal furthers.
The reality is between US legislative activism and White House’s momentary interests, no defence contract is safe from countermanding by the US Congress. There’s no legal sanctity to any contract signed with any US Company or even a G2G (government-to-government) deal for militry goods. India suffered in the past because of it. President Ronald Reagan was compelled to rescind, for example, the deal for US supply of low enriched fuel for the lifetime of the light water reactors at the Tarapur nuclear power station because US nonproliferation laws subsequently promulgated by the US Congress required him to do so. Because the Reagan Administration felt losing India’s confidence would irreparably harm bilateral relations, it persuaded the French government to replace it as fuel supplier. A different administration with a different take on the US national interest could just as easily have shrugged its shoulders and pointed to its inability to do other than implement US law. This might happen again, at any time in the future with the GE 414 contract.
There’s no elasticity in the US system if the White House or the US Congress wants to be punitive even when third parties are involved. Thus in the wake of the 1998 nuclear tests, President Bill Clinton sanctioned India, instantly grounding the Indian Navy’s Sea King anti-submarine warfare helicopter fleet, for instance, because its engine had US-made components! It is this uncertainty that will always dog every US-sourced military equipment in Indian employ and which Ambassador Lenain not so obliquely referred to. The Modi regime should have these facts in mind.
What would happen if the US Congress decides post-414 deal to punish India for, say, not supporting this or that US policy line? The fact that India may have forked over billions of dollars for the GE 414 engine and for its transfer of technology would mean nothing. This is something Pakistan, ostensibly America’s then closest regional partner, for example, learned to its utter consternation. In the 1980s, the Benazir Bhutto government paid up some $370-odd million for additional F-16 strike aircraft only to see new American legislative action negate that contract, resulting in the contracted aircraft — parked for years at a Nevada base and rotting in the sun — remaining undelivered to the Pakistan Air Force, and the money not returned to Islamabad until 30 years later when, given the inflation rate, the value of $370 million had shrunk to low three figures!
What in theory also commends the Safran proposal is that it will be an entirely new design possibly involving materials, such as ceramic composites, and AMCA/Tejas in mind, that it will comply with the stealth features in their designs. The project, moreover, will come with its full supply chain and scheme to manufacture all ancillaries in India. Safran is embarked on producing a jet engine for France’s 6th generation fighter aircraft with afterburner thrust of 125 kN, so it has the design and production nous to help India meet its 110kN engine milspecs. And, most significantly, Paris is offering the 20% of critical tech not included in Washington’s GE 414 tech-transfer deal — the single crystal turbine blades for the jet engine, and other tech.
But, and there is a big but here. GTRE had a consultancy contract with Snecma to help the Kaveri engine get over the hump. When it came to the crunch, according to Indian sources, the Safran-parent, Snecma simply backed away from helping in any meaningful way. And Snecma took a very long time doing it puting the Kaveri in a freeze for the duration until Modi’s 2015 decision to buy Rafale powered by the Safran M-88 engine when the issue of whether Kaveri would work became moot.
To prevent France and Safran/Snecma from again playing us for fools, the contract the Indian government signs should be so tightly drafted by the Indian Ministry of Defence (MOD) — something it is actually incapable of doing if previous contracts with foreign vendors are any guide that have favoured foreign vendors at every turn when it came to realising full ToT (Transfer of Technology) — that it will list, in the minutest technical detail, every technology ranging from every small component to big assemblies, inclusive of critical tech, such as single crystal turbine blades, etc.. The contract should also be framed in an iron-clad time table for tech transfer that’s to be followed, detailing when and to which Indian agency each technology will be transferred to the fullest extent, and by which date. There should be no let, leave, latitude or flexibility in any provision or clause that could permit Safran to wriggle out of contractual commitments. And that each clause and provision of the TOT agreement, running possibly into thousands of pages. has to be legally enforceable under international law which Safran will have to agree to, with imposition of severe financial penalties in case the French Company defaults on any TOT clause/provision for any reason at any time, or causes the engine project time and cost overruns.
It may be safely said that no agency in the Indian government has the requisite contract writing expertise. And hence how to make up for this institutional deficit of the Defence Ministry should seriously worry Modi, defence minister Rajnath Singh, and the country. Because the lack of technical and domain knowledge, familiarity with legal minutiae and drafting skills not only in MOD but in all of the Government of India, has resulted in defence TOT deals in the past costing India very, very dear. But that’s another topic altogether. Suffice it to say, GOI will have to get drafting experts from somewhere, but from where, is the big Question. Absent this, will India not again be fleeced, and get stuck with awful vendor-favouring TOT contract that reinforces India’s reputation as a sucker?
The desperate need is, therefore, for an agency of government that monitors and polices all contracts any ministry or department of government has with any foreign vendor/Company for anything that involves an outgo of hard currency. The Pentagon, for instance, has a College to train military officials in the procurement loops in the nuances of drafting country-specific, interest-specific, contracts and commercial agreements and methods of monitoring the delivery of contracted for items. When the skill-deficient MOD officials go up against professionally trained US and French civilian and military officials in negotiating the actual TOT deals which side, do you reckon, will have the upper hand?
President Emmanuel Macron will no doubt be smarmy, and try and trump Biden’s welcome in Washington for Modi with an even better show befitting the chief guest at the Bastille Day celebrations on July 13. Macron is lucky the Sans-coulottes — the underclass that initiated the French Revolution in 1789, and until three days ago virtually closed down Paris to protest the police shooting of an Arab youth, have stopped rioting, because cancelling the festivities would have been a bad start, considering how much Modi loves colour and spectacle combined with personal gestures of intimacy, and how much is at stake for the French defence industry.
That is because Macron means to push government-to-government deals not only for the Safran engine, but also for the Barracuda conventional submarine tech for the Indian Navy’s Project 75i boat, and for more IAF purchases of the Rafale combat aircraft to fill the Service’s 126 MMRCA (medium multi-role combat aircraft) requirement by whatever name it is called these days. So, Macron will try his damndest best to make and keep Modi happy! He will be conscious of the fact that the last time the Indian PM visited Paris in 2015, one of his predecessors, President Francois Hollande, came away with the foot-in-the-door deal for 36 Rafale aircraft.
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But, what are the larger politico-strategic considerations of the three parties — India, the US and France, which will come into play when New Delhi decides specifically which aero-engine offer to accept?
The US government has finally come around to accepting, forty years after Reagan’s Defence Secretary Caspar Weinberger’s trip to New Delhi to convince the Indian government to buy American military hardware in a bid to displace Russia as India’s main arms supplier, that New Delhi will not budge if advanced tech was not transferred. And even then, the US hesitation in parting with, what it deems, its military high technology crown jewels is evidenced in the GE 414 jet engine deal excluding the single crystal turbine blade tech, etc. As far as, the Biden Administration is concerned the time is now to finally get India in its corner, and the situation with an America-friendly Modi needs to be taken advantage of. A deal like this, even with its shortcomings, many Indian experts contend, will cement mutual trust, and be the proverbial ‘Open Sesame’ for accessing more cutting edge American technologies. It is the means, many believe, to equalize the security situation with a tech-wise rampaging China. They apparently are unaware, however, that even NATO allies get to use only derated US equipment, so India cannot realistically expect to be favoured more than NATO member states.
Still, a fuller military supply relationship with the US can be expected more comprehensively to deepen the bilateral relationship and fetch India collateral benefits– bigger US investments in the Indian economy and infrastructure buildup, trade preferences, a leg-up in the fab and semiconductor design and production business, etc. Moreover, with AUKUS limping along and the military aspects of the India-US-Japan-Australia Quadrilateral stalled by India’s slow stepping on the issue, the security prospects of containing China in the Indo-Pcific look bleak. Washington hopes the real benefit to the US, following on the opening in the defence tech field, will accrue from New Delhi playing ball. The calculation is that substantive cooperation particularly in Space and semiconductor only nominally flagshipped by the 414 deal, will hand Washington what it has long craved — a hard lever to influence Indian foreign and security policies, a means it believes Moscow with its arms pipeline to India used to shape Indian actions, especially during the Cold War.
France is desperate for India to buy into the French defence industry for two reasons. One, that it will help France remain strategically relevant in the Indo-Pacific. And secondly, because of the hope that increased miltech closeness may lead, in the future, to more extensive use by the Indian military of its bases in Djibouti in the Horn of Africa, and in its Indian Ocean island territories at St Pierre on Reunion Island which, in turn, will help defray Paris’ high costs of maintaining a military presence east of Suez.
France has the technology and ergonomically crafted weapons platforms to offer which Indian armed services appreciate and are partial to. Paris is rumoured to be ready to also pass on submarine nuclear power plant technology, etc. — the sort of tech that will simply not be available from the US for love or money. It is this tech Modi should extract from Macron. Force “sustainability and autonomy”, moreover, will be less of a concern with French-sourced armaments. But, to be fair, the C-17s, C-130s and the P-8I armed maritime recon aircraft have not so far faced difficulties with respect to servicing and spares support. But, frontline fighter aircraft are a different proposition altogether. And, in any case, India needs the assurance, which no US Administration of the day in Washington can provide, that the military goods India buys will not be subjected to ITAR. So that’s an insurmountable problem.
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A truly nationalist Indian government, however, would take a different tack. Instead of the binary choice his government is facing, Modi should remember why India’s uninvolved stance on the Ukraine conflict has raised India’s political standing and stock, secured it leverage with the US and the West and Russia, and why every major country wants to court and cultivate it. Not rushing into any one technology paddock is the way to go. The purchase of S-400 air defence system and the contract to buy 2 Grigoryvich-class stealth frigates and to produce two more in the Goa shipyard, has reassured Moscow. So the Russia end is holding up.
Hopefully, Modi will exploit to the fullest India’s being in a unique position to call the shots and carefully pick and choose as between US and French technologies and their direct and spillover industrial benefits just so the technology deficiencies of the country are rapidly filled — these being the missing elements that are required to build on capabilities already in the country that, in turn, will ensure progress towards achieving atmnirbharta. Signing up for prohibitively expensive deals for whole systems, as I have iterated over the years, is wasteful and makes neither economic nor national security sense.
India should instead show interest in just the Barracuda submarine design from France and then play off the French DCNS Company producing it against the German ThyseenKruppMarine firm peddling its HDW 214 submarine, and select tech not available in India, like optronic mast, say, from the leading US company, L3Harris. Biden could be asked to help out here by removing restrictions on the level of tech issues, which he will do to retain Indian goodwill. With tech deficits filled in this way, there won’t be tech voids, and the existing submarine production capability, starting with converting a basic design into engineering drawings, can take over. If Larsen & Toubro can manufacture strategic platforms like nuclear powered ballistic missile-firing submarines, building the techwise less demanding conventional subs shouldn’t be difficult. Likewise, specifically the French single crystal turbine blade tech can be bought for full and complete indigenisation to advance the indigenous Kaveri jet engine because GTRE (Gas Turbine Research Establishment), Bangaluru, it should be noted by Modi/PMO, has already successfully tested and developed single crystal blades for helicopters. The Kaveri jet engine is the future of Indian combat aviation, not a new Safran engine for Indian use.
This is the way to proceed. But this methodology of buying bits and pieces of technology and integrating them with the in-country design, development and industrial capability and process will, of course, be opposed by the three Services. They will come up with hundreds of reasons why such an approach is risky and produce unreliable armament systems, and why buying the Barracuda submarine whole, the Rafale whole, the F-18/Rafale-M carrier aircraft whole, and this whole and that whole will be in the country’s national interest. 60 years of such thinking has reduced India to a pitiable technology and arms dependency. The crux of the issue is the Indian military’s unwillingness to trust indigenous technology and wholly homegrown weapons systems. There’s a simple solution for removing any such resistance: Fire the top echelons of the military leadership that doesn’t accept this new method of procuring armaments and military technology. The rest of the cadres will get the message and fall in line.
One wishes the Modi sarkar will show guts and wisdom and, keeping atmnirbharta firmly in mind, make the right choices. That will mean going against the imports-driven thinking of the myopic Indian policy establishment and military. There’s a price to pay for atmnirbharta, of course, and the nation is prepared to pay it. It needs Indian leaders to put rhetoric into practice and implement atmnirbharta on a warfooting, and not just yap about it.
India’s not accepting the 414 deal will not be a killer and will not affect the US fab/semiconductor deal, nor will not buying whatever Macron has to offer in an aggregated form, if the Modi government simulataneously ups its game on the economic front: Stops talking about administrative reforms and speedily simplifies the regulatory mess relating to land acquisition and labour laws that continues to discourage and deter Foreign Direct Investment and Western and Asian Companies from relocating their manufacturing units en masse from China to India. Such an Indian reform will end up freeing India, the US, Europe and the rest of the world from the Chinese supply chain stranglehold and even win Modi the world’s gratitude.
On the arms front, it should be made clear to the US and France, that India proposes to go in this new direction by buying specific technologies, and never again whole systems or weapons platforms, and that the sooner they accept this new way of India conducting its procurement business, the better their prospects of selling what India wants. India succeeded with this approach — “the technology mission mode” — in Space systems, Missiles, nuclear weapons — when no foreign technology could be secured from anywhere. No further evidence is needed to prove this approach will work just as well with respect to every conventional military-use system.









