By Doug Cameron
CHICAGO--India is hopeful U.S. regulators will reinstate its
top-tier aviation safety rating this year following a downgrade
that placed restrictions on its fast-growing airlines, the
country's new ambassador to the U.S. said Friday.
Ambassador S. Jaishankar also said work is continuing on a new
security agreement that could allow Indian companies to co-produce
military equipment with U.S. partners. The U.S. last year overtook
Russia as India's largest source of arms imports by value.
The Federal Aviation Administration last month ((JAN))
downgraded India's aviation-safety ranking, citing inadequate
oversight by local regulators. Though other countries have taken
several years to regain the coveted Category 1 status, Mr.
Jaishankar said India's return could be swifter.
"I'd hope so," he said when asked if the FAA could upgrade India
from its new Category 2 status this year. Speaking after an event
in Chicago, Mr. Jaishankar acknowledged it was difficult to
determine the timescale as discussions continued between regulators
from the two countries. The FAA did not immediately respond to a
request for comment.
Mr. Jaishankar said in his speech that the FAA downgrade was
among a list of issues that had "bogged down" U.S.-India relations
in recent months, citing also a ban on some pharmaceutical imports
and the recent complaint filed by the U.S. against India with the
World Trade Organization over solar-power equipment.
"Such headlines are not representative of the totality of our
ties," he said, citing military equipment and future gas exports
from the U.S. as two examples of evolving economic ties.
India is the world's largest arms importer, rebuilding the many
antiquated parts of its military in response to long-standing
tensions with Pakistan and to China's military expansion.
U.S. defense exports to India have climbed eight-fold since 2009
and reached $1.9 billion last year, according to IHS Jane's, an
industry consultant, and the countries signed a joint declaration
on defense cooperation last September.
Boeing Co. has driven the expansion with sales of helicopters
and surveillance jets, followed by Lockheed Martin Corp., which has
found a ready market for its military transport aircraft.
The widening defense trade balance has seen Indian and U.S.
officials open talks for the co-production or co-development of
weapons systems, though no deal has been reached.
Mr. Jaishankar said talks continued about "more effective"
technology transfer and on potential co-operation in developing the
next generation of the Javelin anti-tank missile, which is
currently produced by a joint venture between Lockheed and Raytheon
Co.
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