India and the US are working on a framework to facilitate transfer of critical military technology and classified information by American defence firms to Indian private sector for joint ventures, authoritative sources said.

The framework will also prescribe specific measures for ensuring safety and security of sensitive technology and classified information when shared with Indian firms. At present, there is no provision for sharing classified defence information by American companies with the Indian private sector although both countries have been favouring joint development of critical military platforms.

The two countries are working on the specific framework to facilitate sharing of critical military technology by American defence firms with their Indian counterparts, the sources said. They said the government-to-government framework will also bring clarity on issues relating to liability, intellectual property rights and industrial safety. The American defence industry were pushing for such a framework for collaboration with Indian defence firms in private sectors for producing military hardware and platforms.

American defence giants, including Boeing and Lockheed Martin are eyeing billions of dollars of contracts in India and have already offered to manufacture some of their key military platforms in India while forging joint ventures with Indian companies.