Indo-US defence cooperation moving ahead with gusto
India and the US are working together in many ways to ensure a free and open prosperous, connected and resilient Indo-Pacific Region, where democracies can thrive.
India and the US are working together in many ways to ensure a free and open prosperous, connected and resilient Indo-Pacific Region, where democracies can thrive. As partners they want to work together to address climate change, improve global health and prepare for new pandemics, cooperate on cyber challenges, building quality infrastructure and ensuring sustainable supply chains. They are strengthening cooperation on critical technologies from space components to semiconductors. Such close partnerships have generated tens of thousands of jobs in India and enabled critical transfers of technology and manufacturing expertise. US companies have established engineering centres and manufacturing hubs besides investing in R&D centres that harness India’s incredibly talented scientists and engineers to advance cutting-edge projects.
As democracies bookending the Indo-Pacific, the United States and India share a common vision of a free and open Indo-Pacific. This shared vision is strengthened by world class events like Aero India 2023 where there is a possibility to be able to engage in person to increase trust and understanding.
In one year of the India-US Pacific strategy there is excitement in Bengaluru for Aero India. The India-Defence relationship is an important element of that strategy – and our defence partnership is stronger than ever.
Defence has crossed over $ 13 billion. India and the United States have launched a Defence Technology and Trade Initiative (DTTI) aimed at simplifying technology transfer policies and exploring possibilities of co-development and co-production to invest the defence relationship with strategic value.
In a report by KPMG, Indo-US Defence Partnership: The Road Ahead, the ties between India and the United States have improved considerably due to the political will of both countries, which ensured that the ties remain on a growth track and become profound year on year. The current shared interests of India encompass humanitarian assistance, counter-terrorism cooperation, fighting violent religious extremism, maritime security, monitoring weapons proliferation, maintaining regional stability and related aspects.
With the US designating India as a ‘Major Defence Partner’, a status unique to India and which puts it on par with those of its closest allies.
India is set to undertake one of the largest procurement cycles of the world with an estimated spend of about $ 130 billion on capital acquisitions in the next five to seven years, which will create massive opportunities for the domestic industry.
The natural synergies at work here cannot be overlooked by US companies entering the defence manufacturing space in India. They will get exposure to the rapidly growing defence procurement budget of the strategic partner. The potential benefit to the Indian industrial base would be in the form of upgrading domestic infrastructure, capacity addition and research and development activities.
The emerging geo-political realizations combined with sound economic rationale make collaborations between US and Indian defense industries seem imperative. Most important, the collaboration in the respective defence industrial establishments of the two countries will create a firm foundation for enhancing an important friendship between two historical democracies.