WASHINGTON, Nov 20: India wants private American companies to expand their participation in the Indian defence industry, says Indian Foreign Secretary Shyam Saram.

He told a Friday afternoon briefing in Washington that a government body in India, called the Kelkar committee, is already working on increasing the government-industry partnership in the defence sector.

As a follow up to the discussions held in Washington on Friday, the US-India Business Council will lead a delegation of US defence firms to the Aero India 2005 Conference in Bangalore in February next year, he said.

In 1998 India opened its defence production to private companies wholly owned by Indians. The Indian government then began allowing up to 26 per cent direct foreign investment in defence manufacturers, permitting Indian companies with some foreign ownership to bid on defence contracts.

On August 24, the US approved sales of military equipment worth $233 million to New Delhi. This followed a joint exercise between the US and Indian air forces which marked the beginning of a new chapter in Indo-US defence cooperation.

On Friday, over 120 senior representatives from US and Indian businesses, along with officials from the US and Indian governments, concluded a two-day meeting in Washington on expanding business opportunities in the defence technology and information technology areas.

The event - "Dialogue on Defence Technology, Data Privacy, and Export Licensing" - was hosted at the Commerce Department by the US government in conjunction with the US-India Business Council and other industry groups.

"Today's dialogue generated many practical recommendations that will help the United States and India continue to develop a robust level of high-technology trade," said Undersecretary of Commerce for Industry and Security Kenneth I. Juster.

Participants in the defence technology roundtable explored US and Indian government policies concerning defence cooperation and procurement, as well as issues confronting US companies interested in the Indian market.

During the data privacy roundtable, participants focused on various approaches to protecting data, an issue that is critical to the continued growth of information technology industries. During the roundtable discussions, industry participants developed concrete policy recommendations for the US and Indian governments, which were presented to government officials during the luncheon session.

The forum also included a session on explaining various aspects of the US D ual-use and munitions licensing processes and informing US and Indian industry about their responsibilities under US laws and regulations.

The dialogue included introductions from Undersecretary of Commerce for Technology Phillip J. Bond and Indian Foreign Secretary Shyam Saran.

Mr. Saran later told a news conference that the meeting allowed the participants to learn how India and the US conduct business and the latest developments in data privacy, one of the prime areas of concern to the US.

He said the US will soon have a major workshop in India on export licensing to familiarize Indian industry with the US export licensing procedures. The dialogue was the fourth public-private event held under the auspices of the US-India High Technology Cooperation Group. The HTCG was initiated in November 2002 as a result of a commitment between President Bush and the then prime minister of India to stimulate high-technology commerce between the two countries. The HTCG, which is co-chaired by Mr. Juster and Mr. Saran, consists of senior representatives from each government and seeks to identify steps to create a favourable environment for high-technology trade and collaboration, while enhancing the security related to such trade. Earlier, Mr. Juster said that significant progress had been made on developing a work plan to expand high-technology trade between the two countries.

Mr Saran pointed out the group also covers nano-technology, but since India is at an early stage in that area, "its capabilities are still rather limited."