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EDITORIAL DECODE 15.01.2018 Strategic Partnership Meaning and PSU’S

EDITORIAL DECODE 15.01.2018 Strategic Partnership Meaning and PSU’S

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What Is Strategic Partnership?

  • Strategic partnership refers to a bilateral relationship more important than others.
  • It is marked by a potential of convergence between two countries in vital areas such as defense, security.


  • India announced its first strategic partnership with France in 1998
  • Since then with a number of countries – United States, Russia, China, Japan, Indonesia, Australia, Vietnam, South Korea, Iran, ASEAN, Afghanistan to name a few.

Need For Clear Policy

  • India needs align its interests and work more closely with countries where there is a potential for mutual growth.
  • Considering the populist agendas coming up all across the world and dynamics of geo-politics such as Russia-China partnership, there is a need for formulation of clear criteria on strategic partnerships.
  • Also as the world turns multi-polar, apart from defining strategic partnerships, it is also important for India to present itself in regional groupings and international organisations to portray a bigger picture of India in the international scene.

The “Strategic Partnership” Model

  • One company would be selected for each area based on its competence.
  • That company would then tie up with the foreign Original Equipment Manufacturer selected through the procurement process, to build the platform in India with significant technology transfer.


  • It intends to create domestic expertise in four key areas,namely, fighter aircraft, helicopters, submarines, and armoured vehicles and main battle tanks.
  • The government intends to boost private sector participation.
  • It is also aimed at creating a tiered industrial ecosystem,trigger innovation and enable participation in global value chains as well as promote exports.
  • It is intended to enhance competition, increase efficiencies and facilitate faster and more significant absorption of technology.
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