The shift to government-to-government (G2G) deals in defence procurement can significantly influence India’s defence independence by enabling faster, more streamlined acquisitions while promoting strategic partnerships that facilitate technology transfers and indigenous manufacturing.

This approach reduces reliance on the traditional tender process, which is often slow and bureaucratic, thus allowing India to meet urgent operational requirements more efficiently.

Key ways this shift can boost defence independence include:

Enhanced Control Over Procurement Terms: G2G deals allow the Indian government to negotiate specific terms directly with foreign governments, including technology sharing, local assembly, and customised specifications, which support domestic industry growth and skill development.

Promotion of Indigenous Manufacturing: Such agreements often incorporate provisions for local production and collaboration with Indian companies (e.g., TATA Advanced Systems Ltd assembling Rafale fuselages), fostering the "Make in India" initiative and building a robust domestic defence industrial base.

Technology Transfer And Capability Building: Government-backed deals facilitate transfers of critical avionics, electronic warfare systems, and weaponry, reducing dependence on imports of finished products and enabling technological self-reliance.

Strategic Partnerships And Geopolitical Leverage: Direct ties with supplier governments can lead to deeper defence cooperation, joint development projects, and improved interoperability, which are vital for India’s security needs amid regional challenges.

Streamlined Decision-Making And Reduced Delays: By bypassing complicated tendering procedures, G2G deals can expedite procurement timelines, helping the Indian Air Force quickly address capability gaps.

Shifting to G2G deals aligns with India’s broader defence modernisation and self-reliance goals, as reflected in policies prioritising domestic procurement and boosting indigenous production, which has seen record growth in recent years. While India remains a significant arms importer, this model supports a gradual transition to becoming a major builder and exporter of defence technology, thereby strengthening its defence independence over time.

The move to government-to-government procurement can accelerate India's progress toward defence self-reliance by enabling better technology access, fostering local industry, and enhancing strategic defence partnerships.

Significant Affect In India's Control Over Military Technology Transfers

Government-to-government (G2G) deals significantly affect India’s control over military technology transfers by providing a more direct and often strategic framework for negotiating and managing technology sharing compared to traditional tender-based acquisitions.

Here are the key ways G2G deals influence India’s control over military technology transfers:

Direct Negotiation And Customised Terms: G2G agreements enable India to negotiate specific terms with foreign governments on technology transfer, local production, and customization of defence systems. This direct engagement increases India's leverage to secure technology sharing clauses that align closely with national interests, supporting indigenous capability development.

Exemption From Offsets But Focus On Technology Transfer: Recent defence acquisition policies have removed mandatory offset obligations for G2G deals, unlike competitive tenders where foreign vendors had to invest a certain percentage of contract value into India’s defence sector. While offsets aimed to promote local industry growth, their patchy implementation led to limited real technology transfer. Hence, in G2G deals, India’s control focuses more on targeted technology transfer agreements negotiated bilaterally rather than relying on offsets as a broad mechanism.

Facilitation of Indigenous Manufacturing: G2G deals often include provisions for local assembly and production, as seen in India’s contract for Rafale jets, where Tata Advanced Systems assembles fuselages. Such arrangements allow India to build domestic industrial and technological capabilities and incrementally gain expertise over critical defence technologies.

Improved Strategic Partnership And Trust: G2G transactions reflect deeper strategic ties and trust between India and supplier countries, which can foster joint research, co-development, and sharing of sensitive technologies under controlled frameworks. This complements India’s emphasis on becoming more self-reliant in defence technologies and strengthening its defence industrial base.

Streamlined Procurement Enhancing Technology Access: By simplifying and accelerating procurement processes through G2G deals, India is better positioned to timely integrate advanced military technologies. The direct government negotiations reduce bureaucratic delays and allow effective coordination on technology transfer modalities.

Government-to-government defence deals enhance India’s control over military technology transfers by enabling direct, strategic negotiations tailored to national priorities, supporting indigenous production, and fostering deeper defence partnerships.

Although such deals may exclude offset obligations, they offer clearer pathways for meaningful technology sharing compared to competitive tenders, aiding India’s broader goals of defence self-reliance and capability building.

IDN