But it is vital that the next fighter deal must go well beyond simple purchase and even licence manufacture of major components. Even the licence manufacture option would leave the country dependent on external sources of supply. We were lulled in the past into the belief that transfer of technology was taking place while the reality was that it was production technology that was transferred and not the design technology and data. This is why we had to go back to Moscow to upgrade the comparatively less sophisticated aircraft like the MiG-21. We have the Su-30 being manufactured under licence, though we don’t know how much design data is being transferred. This is probably the reason for Russian discomfort over including an offsets clause from new purchases from them.

Large investments in defence modernisation with high-technology weapons like the acquisition of the new fighters must be leveraged to energise our defence (especially aerospace) industry. This should aim to serve two key purposes: build interdependence through horizontal and vertical partnerships, and empower Indian industry through capacity building with acquisition of modern aerospace technology. Both these principles are crucial to strengthening self-reliance through enhancing mutual dependence with countries and their industries that are willing to do so. These are also important for sustaining our broader techno-economic growth rates. Global trends in the aerospace industry on one side and India’s growing technological and economic capabilities on the other point towards mutual advantages in pursuing this route. This is where the issue of offsets assume great importance.

... contd.