Some thoughts over at the Diplomat on the ongoing efforts (by just about everyone) to come to some kind of agreement to co-produce fighters with India:
The U.S. and Indian governments continue to work on at least a couple of proposals to shift production of fighter aircraft from the United States to India. The core problem, as outlined by Aditya Kalra and Sanjeev Miglani, is that U.S. firms worry about the security of their technology. Lockheed Martin and Boeing, in particular, have expressed concern that by taking a minority stake in joint ventures with Indian companies, they will lose control of sensitive military technologies.
Acquisition of technology (especially sensitive defense technology) is a key part of the deal for the Indian government, which has continued to struggle with developing a world-class defense industry. Protection of technology, conversely, is a key demand of U.S. firms considering partnerships in India. As Indian rules limit foreign partners to a 49 percent stake in any joint ventures, the U.S. firms have real concerns.