Information pact needed for SP policy: USIBC official

Says Indian, American governments have been told about it

In this January 29, 2016: U.S. Chamber staff photos, USIBC. Ben Schwartz.

U.S. defence companies will not be able to partner with the Indian private sector under the ambitious Strategic Partnership (SP) policy, unless New Delhi concludes an agreement for sharing classified agreement with the U.S. government, a senior official in the US-India Business Council (USIBC) told The Hindu .

“I am concerned that if we don’t get that done, despite positive intentions it will be difficult for U.S. companies to work under the SP policy. From USIBC, we have communicated to India and American Governments on the need to get this done,” said Ben Schwartz, senior director for Defence and Aerospace in USIBC.

India and the U.S. have the General Security of Military Information Agreement (GSOMIA) which was signed years ago and allows sharing of classified information from the U.S. government and American companies with the Indian government and defence public sector undertakings (DPSUs) but not with Indian private companies.

“To ensure Indian private companies are on a level playing field with the DPSUs, an important Modi government policy, an annexe should be established allowing information transfer to Indian private companies,” Mr. Schwartz stated.

On the U.S. industry’s view of the SP policy, Mr. Schwartz said the overall response was “positive.”

“With any new policy there are complexities … We are in conversation with different offices in the Indian government on the SP policy and how it will be implemented,” Mr. Schwartz said.