The Donald Trump administration has told the US Congress that it "strongly supports" the sale of F-16 and F-18 fighter planes to India. Both Boeing and Lockheed Martin have offered to assemble the planes in India if New Delhi decides to buy them, the Hindu reported.
Trump is in principle against American companies relocating facilities abroad. A written submission by Alice Wells, acting Assistant Secretary of State for the South and Central Asian Affairs, to the Congressional subcommittee has clearly stated the administration's stand on the issue.
Wells, in her written submission, spoke about the strategic significance of defence cooperation with India. She said: "Defence cooperation with India is so vital to US interests because we need India to be a net security provider in the Indo-Pacific."
However, she also said that the US needs to do more to reduce its trade deficit with India and create more jobs for Americans - issues that assume the top priority for the Trump administration. Wells added that US exports to India provide jobs to over 260,000 Americans "across all 50 states."
US fighter plane F-16 and Gripen, which is built by Swedish company Saab, are in competition for single-engine fighter acquisition for the Indian Air Force, the Hindu reported. On the other hand, France's Rafale and Boeing's F-18 fighter planes are competing to get the contract for the twin engine fleet of the Indian Navy for its aircraft carriers.
Meanwhile, Lockheed Martin and Tata have announced a joint venture to manufacture the F-16 fighter planes. Saab has also announced a joint venture with Adani last week for Gripen.
Concerns India needs to address before going ahead
India needs to address several concerns before moving ahead with the deal.
"What is the depth of the technology transfer that these companies will offer to India? How will they help India's aspirations for the domestic defence manufacturing capabilities? When they say they will make in India, what exactly will they make in India - as components are manufactured world over, and mostly in America," a source familiar with the Indian position told the Hindu.
The Narendra Modi government also needs to address questions about the supply of ammunition and the assurances by the US administration in case there is a conflict with Pakistan, which also has a fleet of the earlier generation of F-16 fighter planes supplied by the US.