The United States and India have agreed to commence negotiations for a ‘Security of Supply’ (SoS) arrangement and a ‘Reciprocal Defence Procurement’ (RDP) agreement. These initiatives aim to foster long-term supply chain stability and boost defense and security collaboration between the two nations. SoS agreements are bilateral or multilateral accords ensuring the availability and stability of crucial supplies, especially concerning defense and security. On the other hand, an RDP agreement is designed to facilitate mutual procurement of defense items and encourage cooperation in research, development, and production of defense equipment.
Main Highlights of the Defense Agreements
Major points of discussion included assembling General Electric GE-414 jets in India and establishing a roadmap for ‘Defence Industrial Cooperation’. This roadmap outlines future policy direction and paves the way for further technological co-development and collaboration on current and new systems. The agreement also emphasizes capacity building and infrastructure development, including Maritime Domain Awareness (MDA), strategic infrastructure expansion, and sourcing increase by US enterprises from India, especially Boeing under the mega-civil aircraft deal with Air India.
Capacity Building and Infrastructure Development Under the Agreement
The agreements shed light on the creation of Maintenance, Repair, and Overhaul (MRO) facilities by American companies in India to serve the Indian armed forces and the region at large. Such facilities will not only enhance India’s defense capabilities but also create jobs and promote technology transfer.
US-India Defence Acceleration Ecosystem: INDUS-X
The US-India Business Council will introduce the INDUS-X initiative to propel advanced technology cooperation. The initiative targets companies, investors, start-up accelerators, and academic research institutions from both countries, providing a platform for innovation and collaboration.
Evolution of India-US Relations
The U.S.-India strategic partnership lies on the shared values of democracy and upholding a rules-based international system. Both countries are keen to promote global security, stability, and economic prosperity through trade, investment, and connectivity. The U.S. has emerged as India’s biggest trading partner in 2022-23, owing to strengthening economic relations. The bilateral trade witnessed a growth of 7.65% in 2022-23 compared to the previous year, reaching USD 128.55 billion.
India-US International Cooperations
India and the United States closely cooperate across various multilateral organizations including the United Nations, G-20, ASEAN Regional Forum, IMF, World Bank, and WTO. In 2021, the US welcomed India joining the UN Security Council for a two-year term and supports its inclusion as a permanent member in a reformed council. India is also one of twelve nations partnering with the US on the Indo-Pacific Economic Framework for Prosperity (IPEF).
Way Forward for India-US Relations
The partnership between India and the US is paramount for ensuring a free, open, and rules-bound Indo-Pacific region. As India emerges as a prominent player in the rapidly transforming international system, it should leverage the existing demographic dividend for pursuing opportunities in technology transfer, manufacturing, trade, and investment. These endeavors can stimulate economic growth, generate jobs, and further vital national interests.
