To facilitate transfer of technology and arms to India, recently designated as a major defence partner, the United States has made several changes to its stringent export laws. The new rules seek to "create a presumption of approval" for sharing technology and selling sensitive equipment. With new rules in place, India will now be denied access to US technology and arms only in the rarest of the rare cases.

Industry in India has welcomed the news as unrestricted access to US technology will help it realise Prime Minister Narendra Modi’s dream of Make In India. “I'm pleased to see India's status as a 'Major Defence Partner' - a designation that we have strongly supported - be translated into tangible regulatory reform,” president of US India Business Council (USIBC) Mukesh Aghi was quoted as saying.



Indian companies, after they become Validated End User (VEU), will not need individual licenses. According to Benjamin Schwartz, director for Defence and Aerospace at USIBC, these changes will help US and Indian companies in building global supply chains easily.

“This is a very favourable policy for Indian companies. The rule will make business substantially easier for Indian companies in the defence sector, especially those partnering with American companies. This gives Indian and US companies operating in India the ability to be reactive in real time to meet their supply chain needs,” the Economic Times quoted Schwartz as saying.