India and the US may forge a historic collaboration with the possibility of defense research outsourcing.

Indian Foreign Secretary Shyam Saran said that there has been interest shown in the project. He said "We are now looking at whether it is possible to have a technological tie-up on defense research [located in the country]." He added, "It would be like IBM or GE [setting up] their research and development wings here."

The defense research partnership could be discussed and agreed upon in two upcoming trips. The Indian Prime Minsiter Manmohan Singh is set to visit the US in July, while US President George Bush may come to India late 2005.

India is the ideal country for defense research outsourcing because of its strong background in software engineering and aerospace. Its proficiency in these fields combined with the US' knowledge in electronic warfare would make defense research successful.