JOIN USCurbs on DRDO, ISRO go
Speaking at an Indo-US business meeting, Obama said the “dual-use” rules, by which high-tech exports by American manufacturers to the DRDO and ISRO are banned, would be amended and updated. The “dual use” refers to technology that can be utilised for both civilian and defence purposes.
Another equally significant announcement that came from the American side was that the US will also back India’s bid for a membership of the 45-member Nuclear Suppliers Group (NSG) and three similar control regimes, which will enable India to get the “dual-use” technology from member countries. Such transactions will be subject to rules of individual nations. It also means India will have a say in framing export control rules.
Although the announcements were made to make it easier for the US companies to do more business with Indian institutions and firms, it will please India nevertheless as many governments have been pressing the US to ease export controls and remove the DRDO and ISRO from the banned list.
Just before coming to India, Obama had said in an interview that the issue is “very difficult and complicated,” a fact which even his predecessor could not wish away. Besides the DRDO and ISRO, another important Indian agency which the government wanted off the banned list was the Department of Atomic Energy (DAE), but there was no reference to it.
India has been contending that there has been absolutely no justification for such controls “after elevating relationship (between the two countries) to a strategic partnership, and after signing Indo-US nuclear deal.”
A high-level Indian delegation which visited the US to prepare for Obama’s visit had told American counterparts that the government research organisations like the ISRO and the DRDO must not remain on the banned list.
The US banned list stems from its Export Administration Act of 1979, which authorises the Department of Commerce in consultation with other appropriate agencies to regulate the export or re-export of US-origin dual-use goods, software, and technology.
One such so-called dual-use item is cryogenic engine for GSLV (geo-synchronous satellite launch vehicle), which the ISRO wanted desperately, but could not get due to “dual-use” controls. The US also put pressure on Russia against to transferring the cryogenic technology to India a decade back, which put India’s space programme 10 years behind.
Removing the DRDO and ISRO from the banned entity list will allow for “greater trade and cooperation in civilian space and defence, and enable our governments to focus on other outstanding barriers that hinder expanded bilateral high-tech trade. And this a very significant step forward,” said US Deputy National Security Adviser for International
Economic Affairs Mike Froman in a statement during the Presidential visit.
India got waiver from the NSG for the Indo-US nuclear deal, but the membership is a different story. And there are rules which India will have to comply before being admitted to that exclusive club.
The U S will also support India’s full membership in three other multilateral export control regimes—the MTCR (Missile Technology Control Regime), the Australia Group, and the Wassanaar Arrangement. These are groups of multilateral, “dual use” export control clubs. The Australia Group deals with chemical and biological weapons. Wassenaar deals with conventional weapons and “dual use” technology in it.
Froman said the NSG membership to India “will come in a phased manner. And we will consult our regime members to encourage the evolution of a membership criterion of these regimes consistent with maintaining their core principles.
“So as the membership criterion of these four regimes evolves, we intend to support India’s full membership in them. And at the same time, India will take steps to fully adopt the regime’s export control requirements to reflect its prospective membership,” Forman stated.
“The second element of the export control reform package being announced is that we will remove India’s defence and space-related entities from the US entity list. The entity list at one point had, I believe, 220 Indian entities on it. And there are only four left. And today we will announce a removal of three of them,” US statement said.