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Home arrow News arrow Defence arrow Removal from Entity List facilitates more opportunities for ISRO and DRDO
Removal from Entity List facilitates more opportunities for ISRO and DRDO Print E-mail
Written by Anand   
Tuesday, 16 November 2010
New Delhi: With US President Barack Obama's decision to remove Indian organisations from the Entities List, India's Defense Research and Development Organization (DRDO) and Indian Space Research Organisation (ISRO) among other organisations will no longer need to have a licence for import of certain high technology items.

In addition to this DRDO, with approximately 40 laboratories under it, could take up offset contracts for defence equipment manufacturing from U.S. companies.

"We need to forge partnerships in high-tech sectors like defence and civil space. So we have removed Indian organizations from our so-called 'Entity List'," said President Obama.

ISRO, DRDO, Bharat Dynamics Limited (BDL) and Department of Atomic Energy had been on the Entity List. The Entity List, maintained under the Export Administration Regulations (EAR) of the US Department of Commerce (DoC), was formulated to control the export of dual-use and strategic materials and systems. US companies need specific DoC licences for supplying specified items to foreign businesses, research institutions, government and private organizations and individuals on that list.

Gary Locke to lead high-tech trade mission to India from February 6-11, 2011.

US Commerce Secretary Gary Locke will lead a high-tech trade mission to India. The February 6-11, 2011 business development mission will promote the export of high-technology products from leading U.S. firms and make stops in New Delhi, Mumbai, and Bangalore. The second trade mission led by Locke, it will highlight export opportunities for U.S. businesses in a broad range of advanced industrial sectors, including civil-nuclear trade, defense and security, civil aviation and information and communication.

Exports represent a critical part of the American economy and are a key component of the Obama administration’s efforts to spur new job creation. Earlier this year, President Obama outlined his National Export Initiative (NEI), which seeks to double exports by 2015, in support of several million new U.S. jobs.

"We will work to reform our controls on exports. Both of these steps will ensure that Indian companies seeking high-tech trade and technologies from America are treated the same as our closest allies and partners," Obama said.

"We have agreed on steps to deepen cooperation on nuclear, defence and other high-end spectrum," said Prime Minister Manmohan Singh.

DRDO has already separated it's military satellite programme from ISRO's civil satellite development and launch programme. Soon DRDO will set up an exclusive organisation for military satellites.

The United States could outsource lightweight satellite launches to India. Lockheed Martin is also interested in cooperating with ISRO on India's manned space flights.  Senior executives from Lockheed Martin had visited Bangalore in August and held discussions with ISRO and Antrix. Some of the US satellites assigned to Lockheed Martin could be outsourced to India. There is a dearth of low-cost launching facilities in the world and ISRO has a good track record in this regard. ISRO could soon be a global leader in commercial launches.

This will benefit ISRO, VSSC (Vikram Sarabhai Space Centre), SDSC (Satish Dhawan Space Centre) and other associated organisations. ISRO's satellite launchers are made at VSSC and launched from SDSC.

However it remains to be seen how this would affect the current focus on the indigenous development of technology. To a certain extent, it was the denial of technology that bolstered the introduction of various indigenous research, design and development programmes in the country.

The US will also support India's entry for full membership of Nuclear Suppliers Group.

Last Updated ( Tuesday, 16 November 2010 )
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