Jul 11, 2018

Leveraging export control group memberships

India has recently become member to Wassenaar Arrangement (WA), Australia Group (AG) and Missile Technology Control Regime (MTCR), the three leading export control regimes in the world. The memberships to these bodies reflect acceptance of India as a responsible growing power, and an acknowledgement of impeccable non-proliferation record that India has maintained over decades.  However, a mere membership doesn’t confer the desired benefits unless India walks the extra mile to harness the technological benefits these agreements confer. Lest it be misunderstood, one must state here that India has shown tremendous self resolve to develop technologically despite non-cooperation from leading technology powers over decades, especially in the area of missiles, space and computers. However, with the membership to the technology control groups, we may now look forward to develop as a partner and a leader in future if we strategize and work towards it in mission mode. 

The export control multilateral agreements seek to control the proliferation of dual-use, advanced military, space and sensitive technology from falling into the hands of rogue nations, terrorist groups and non-member states. They have their genesis during cold war era, but have continued in altered forms to the present. India has suffered for want of such technology for decades while being a non-member. The non-availability of advanced technology hampered India’s fast technological advancement in the past as she was forced to develop most of the required technology indigenously. While in few areas we did well, we suffered in various defense related technology development. It is difficult to measure the exact impact of technology denial on development; one may reasonable surmise that we must have lost decades of manpower reinventing the wheel. 

India has now set up a reliable and effective export control system for controlling the export of sensitive technology from India in line with the best practices of the member countries. The outreach with the industries has ensured that partner industries, especially in the private sector, understand the sensitivity of technology transfer to non-member states. Various arms of the government work in tandem to ensure that India adheres to the commitments in letter and spirit. The number of applications for exports under these arrangements has soared up in recent times, indicating the fact that there is a good awareness of export control requirements, and that India is integrating into the technology regime. Many of those who are exporting the technology products are private sector players, which is a positive development. 

Yet this is not enough. India needs to strategize to gain more from the memberships to these groups. The membership opens up a world of opportunities for technology up-gradation that was not available earlier to us. For effective utilization, India should move on two fronts. 

First, we should do a SWOT analysis to identify the fields in which we are lagging when compared to the member states. A team of experts should be constituted in each such area in terms of technology verticals. A collaborative R&D setup including universities, research institutions and industry should be established to get the technology at the working levels in each vertical into the country. At times, some of the technology might not have any takers in the industry. Even then, the technology should be mastered at the research institution levels. For example, in the area of some of the high temperature alloys used in turbines and missiles, we should establish research foundries that can produce these alloys and develop the knowledge base for industry transfer whenever need arises. Similar arguments can be made in the area of advanced manufacturing, 3D printing, armaments and defense equipment, software, drone technology and so on. The list is endless. 

Second, we should develop deeper linkages with friendly member nations for technology collaboration and transfer. India has developed as an important export market for the member states. The membership is an attestation to our growing potential as a market for technology products, in addition to our credentials as a non-proliferator. We need to leverage our position to collaborate and grow. While India would certainly benefit from technology transfer, our technical manpower and expertise would help the member states too. It would be a two way street in the long run. We should use the membership for developing and integrating into the technology value chains in defense and advanced technology areas. 

It is important that India strategizes and moves actively to harness the benefits arising out of these memberships as early as possible. Otherwise the membership would simply end up as a decorative feather in the cap with marginal utility for a handful of public and private sector players who fulfill defense offset requirements and elementary technology exports that fall under export controls.