24-August-2024-Special-Article

DUAL-USE GOODS AND TECHNOLOGIES: INDIA’S POSITION AND GLOBAL IMPLICATIONS

Dual-use goods and technologies refer to items that can serve both civilian and military purposes. The transfer and trade of these goods are tightly regulated due to their potential to be used in the development of weapons and military systems.

In recent times, there has been a growing focus on dual-use exports, especially in light of geopolitical tensions, such as those involving Russia.

About Dual-Use Goods and Technologies:

Dual-use goods and technologies are items that have both civilian and military applications. Their trade is subject to strict regulations due to the potential risks associated with their use in military or terrorist activities.

Examples of Dual-Use Goods and Technologies

• Global Positioning Systems (GPS): Used for navigation in both civilian and military contexts.
• Missiles: Can be employed in both defensive and offensive military operations.
• Nuclear Technology: Used in energy generation and potentially for developing nuclear weapons.
• Chemical and Biological Tools: Essential for civilian industries like pharmaceuticals but can also be weaponized.
• Night Vision and Thermal Imaging: Useful in both civilian surveillance and military operations.
• Drones: Employed in commercial deliveries and in military reconnaissance and strikes.

Key Dual-Use Technologies

• Hypersonic Systems: Capable of traveling at speeds over five times the speed of sound, useful in both satellite launches and military applications.
• Integrated Network Systems-of-Systems: Enhances government and military communication networks, making them more resilient and secure.
• Microelectronics: Crucial for both civilian electronics like smartphones and computers, as well as military hardware.

Export Controls for Dual-Use Goods and Technologies

Multilateral Export Control Regimes: International frameworks regulate the export of dual-use goods to prevent their misuse.

• Wassenaar Arrangement (WA): Focuses on enhancing transparency and responsibility in the transfer of conventional arms and dual-use goods. India became a member in 2017.
• Nuclear Suppliers Group (NSG): Aims to prevent the spread of nuclear weapons by controlling the export of nuclear materials and technologies. India, not a member due to its non-signatory status to the Nuclear Non-Proliferation Treaty, voluntarily follows non-proliferation practices.
• Australia Group: A coalition of countries working to prevent the export of chemical and biological weapons. India joined in 2018.
• Missile Technology Control Regime (MTCR): Aims to curb the proliferation of missile and UAV technology capable of delivering significant payloads. India has been a member since 2016.
• CWC and BWC: India is a signatory to the Chemical Weapons Convention (CWC) and the Biological and Toxin Weapons Convention (BWC), both of which aim to eliminate the threat of chemical and biological weapons.
• UN Security Council Resolution 1540: Mandates UN member states to regulate the export of goods that could endanger global peace and security.

Recent Developments

Sanction Risks: Indian companies may face sanctions from the US under the Countering America’s Adversaries Through Sanctions Act (CAATSA) if they export dual-use goods to Russia.

Financial Risks: The US has cautioned Indian banks that engaging with Russia’s military-industrial complex could jeopardize their access to the US financial system.

India’s Export Position: The items highlighted by the US are not classified as Special Chemicals, Organisms, Materials, Equipment, and Technologies (SCOMET) items in India, which require specific licenses for trade.

• India’s Exports to Russia: There was a 40% increase in India’s exports to Russia in 2023, driven primarily by engineering goods.

China’s Role and US Concerns: The US has identified China as a major supplier of critical dual-use items to Russia and has blacklisted over 300 companies.

Iran’s Role: Iran has supplied Russia with munitions, artillery shells, and drones.

India’s Strategic Trade Control System

India has a comprehensive legal framework to regulate the flow of dual-use goods and technologies, balancing commercial and security interests.

Key Legislations:

• Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005
• Arms Act, 1959
• Atomic Energy Act, 1962
• Chemical Weapons Convention Act, 2000
• Explosives Act, 1884

SCOMET List: India’s national export control list that categorizes dual-use goods, munitions, and nuclear-related items, requiring special licenses for export.

Conclusion:

Balancing the control of dual-use goods with national interests is a delicate task for India.

While adhering to international regulations and avoiding sanctions is crucial, particularly in sensitive geopolitical contexts like those involving Russia, India must also protect its economic interests and maintain strategic autonomy.

Strengthening oversight and raising industry awareness can help ensure that export policies align with international standards while fostering innovation and safeguarding national security

Mains Question:

1. Discuss the challenges and implications of regulating dual-use goods and technologies in India, particularly in the context of maintaining strategic autonomy while adhering to international non-proliferation norms. (150 WORDS)