To support supply chain stability, both parties have consented to begin talks on the Security of Supply Agreement and a reciprocal defence procurement accord.
Source: The New Indian Express
The Logistics Exchange Memorandum of Agreement (2016), which permits their militaries to use each other’s bases for repair and replenishment of supplies; the Communications Compatibility and Security Agreement (2018), which enables interoperability between the two militaries and the sale of high-end technology from the US to India; and the Basic Exchange and C2 Agreement (2016) have all contributed to the significant advancements in India-US defence relations over the past decade or so.
Notably, despite all of these attempts, the US ranks third among India’s top armament suppliers with an 11% share, well behind France (29%), and Russia (45%). This shows that there is still a long way to go before the US plays a significant role in India’s defence imports and the Make in India project. Reliability, quality control, cost effectiveness, and ease of doing business are a few examples of the reasons India favours French and Russian manufacturers.
Source: NDTV
A deeper strategic partnership between India and the US depends on facilitating technology transfer and boosting indigenous industrial capacity in India. In light of China’s assertive behaviour in the Indo-Pacific, it is hoped that both countries will make a greater effort to remove any barriers to the development of their defence cooperation.
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