India-US Defence Pact to Deepen Cooperation | 28 Aug 2024

Source: IE 

Why in News?

Recently, India and the US have signed two key pacts- a non-binding Security of Supply Arrangement (SOSA) and a Memorandum of Agreement regarding Assignment of Liaison Officers. 

• Both countries also agreed to enhance priority co-production projects as part of the 2023 US-India Roadmap for Defence Industrial Cooperation. 

What are the Key Defence Agreements Signed Between India and the US? 

• Security of Supplies Arrangement (SOSA): 
  • The Security of Supplies Arrangement (SOSA) is an agreement between the US and India. 
    • India is the 18^th SOSA partner of the US after Australia, Canada, Denmark, Estonia, Finland, Israel, Italy, Japan, Latvia, Lithuania, the Netherlands, Norway, Republic of Korea, Singapore, Spain, Sweden, and the UK. 
  • It allows both nations to prioritise each other's goods and services for national defense, ensuring supply chain resilience during emergencies. 
  • Under SOSA, US defense contractors can request expedited deliveries from India and vice versa.  
  • Although not legally binding, SOSA operates on mutual goodwill, with Indian companies prioritising US orders and the US offering assurances through its Defense Priorities and Allocations System (DPAS), managed by the Department of Defence (DoD) and the Department of Commerce (DOC). 
• MoU on Liaison Officers:  
  • The Memorandum of Understanding (MoU) aims to enhance information-sharing between India and the US by establishing a system of Liaison Officers. 
  • It will start with India's deployment of an officer to the US Special Operations Command in Florida.  
  • This initiative builds on previous agreements, including the September 2013 Joint Declaration on Defence Cooperation and the 2015 Framework for US-India Defence Relations, reflecting a commitment to strengthen bilateral defense ties. 
• Reciprocal Defence Procurement (RDP) Agreement: 
  • India and the US are discussing a Reciprocal Defence Procurement (RDP) Agreement  which is yet to be finalised. 
  • These are designed to enhance the rationalisation, standardisation, interchangeability, and interoperability of defense equipment between the US and its allies.  
  • The US has signed RDP Agreements with 28 countries so far.  
  • This agreement would enable US companies to bypass certain procurement restrictions, such as India's "Make in India" initiative, facilitating the establishment of manufacturing bases in India and closer collaboration with local firms. 
• SOSA Vs. RDP: 
  • SOSA and RDP both aim to enhance defense relations between two nations, but they have distinct objectives.  
  • SOSA focuses on maintaining the defense supply chain during crises, while RDP establishes a legally binding framework that requires prioritisation of defense orders, facilitating greater joint production and technological collaboration. 

What are the Developments in India-US Defence Cooperation? 

• GSOMIA: The foundation of India-US defense cooperation was laid with the 2002 General Security of Military Information Agreement (GSOMIA), facilitating the sharing of sensitive military information.  
• LEMOA: This was followed by the Logistics Exchange Memorandum of Agreement (LEMOA) in 2016, which established the framework for reciprocal logistical support between the two militaries.  
• COMCASA and BECA: The Communications Compatibility and Security Agreement (COMCASA) in 2018 enhanced secure military communications and access to advanced defense technologies, while the Basic Exchange and Cooperation Agreement (BECA) in 2020 enabled the sharing of geospatial data critical for military operations.  
• 2+2 Dialogue: These foundational agreements supported by joint exercises and the 2+2 Ministerial Dialogue collectively facilitated interoperability and trust, setting the stage for deeper collaboration. 
• Strategic Trade Authorization Tier-1 Status: India-US defense ties have grown significantly since the early 2000s. India was designated a Major Defense Partner in 2016 and granted Strategic Trade Authorization tier 1 status in 2018, allowing access to advanced technologies.  
• DTTI: The Defence Trade and Technology Initiative (DTTI), established in 2012, aimed to streamline defense trade and promote co-production and co-development of defense technologies, reflecting a shift from a buyer-seller relationship to a partnership model. 
• Military Procurement: India's military procured from the US MH-60R Seahawk helicopters, Sig Sauer rifles, and M777 howitzers. 
  • Ongoing negotiations to manufacture GE F-414 jet engines in India and procure MQ-9B High-Altitude Long-Endurance (HALE) UAVs signify a growing emphasis on indigenous production and technology transfer, in line with India's 'Make in India' initiative. 
• INDUS-X: The launch of the India-US Defense Acceleration Ecosystem (INDUS-X) in June 2023, fostered defense innovation and industrial cooperation. 
  • In 2023, the defense cooperation roadmap highlighted priority areas such as Intelligence, Surveillance, and Reconnaissance (ISR), Undersea Domain Awareness, and Air Combat Systems.  
• I2U2 Grouping: I2U2 comprises India, Israel, the US, and the United Arab Emirates, dedicated to joint investments and new initiatives in various sectors, including water, energy, transportation, space, health, and food security. 

How India and US Relations Have Evolved Over the Time? 

• Cold War Period: 
  • During the Cold War, India and the US were on opposite sides, with India pursuing non-alignment and Pakistan aligning with the US.  
  • Relations improved in the 1990s after India's economic liberalisation and the end of the Cold War.  
  • President Clinton's visit to India in 2000 marked a turning point, leading to strategic dialogues and increased economic cooperation, further strengthened by the Next Steps in Strategic Partnership (NSSP) in 2004. 
• Nuclear Agreement: 
  • The 2008 Civil Nuclear Agreement ended India's nuclear isolation and recognized it as a responsible nuclear power, enhancing cooperation in defense and high-tech sectors and solidifying the US commitment to elevating India's global status. 
• Economic Synergy: Bilateral trade reached USD 118.28 billion in 2023-24, making the US India's largest trading partner.  
  • Cooperation has expanded to clean energy, the digital economy, and healthcare, with initiatives like the US-India Strategic Clean Energy Partnership and collaboration on Covid-19 vaccines. 
• Technology Cooperation: It has become a cornerstone of bilateral ties, with collaboration in Artificial Intelligence (AI), Quantum Computing, and 5G.  
  • The US-India Science and Technology Endowment Fund and recent initiatives like the US-India AI Initiative and iCET highlight the strategic importance of tech cooperation. 
  • The Artemis Accords signed by India and the United States establish a common vision for the future of space exploration with the two countries cooperating through the bilateral Civil Space Joint Working Group. 
• Geopolitical Alignment: The rise of China has brought India and the US closer strategically.  
  • The revival of the Quad and India's inclusion in the US Indo-Pacific strategy reflect this alignment, emphasising a "free and open Indo-Pacific" and deepening geopolitical cooperation.

What are the Challenges to India-US Relations? 

• Human Rights and Democratic Values: Relations between the US and India have been affected by concerns over the treatment of minorities, especially Muslims. The Citizenship Amendment Act (CAA) and the revocation of Jammu and Kashmir's special status have prompted discussions about India's commitment to secularism and tolerance. 
• Strategic Competition with China: While both nations see China as a strategic challenge, their approaches sometimes diverge. India's economic ties with China occasionally conflict with US interests, creating friction. 
• Trade and Economic Disputes: Trade disputes, protectionist measures, and concerns over market access and intellectual property rights complicate efforts to reach a comprehensive trade deal. 
• Geopolitical Alignment: The legacy of India’s non-alignment during the Cold War, which saw it lean towards the Soviet Union, still influences perceptions and expectations in the bilateral relationship. 
  • India seeks to balance its relations with both the US and Russia. This balancing act can create tensions, especially when the US expects stronger condemnation of Russia from India over Russia-Ukraine War. 

Way Forward

• Address Diplomatic Concerns: India and the US should resolve tensions by addressing issues related to democracy and strategic cooperation, with a focus on initiatives like the iCET. 
• India’s Role as a Global Bridge: India can leverage its leadership in forums like the G20 and SCO to bridge gaps between the West and developing nations. 
• Enhance Counterterrorism Cooperation: Strengthen efforts on counterterrorism, particularly in managing a Taliban-led Afghanistan and pressuring Pakistan to curb support for terrorist groups. 
• Focus on Emerging Technologies and AI: Increase collaboration on emerging technologies and AI, emphasising data regulation, information sharing, and privacy for national security. 
• Advance Multilateral Coordination: Prioritise coordination in forums like the Quad and I2U2 to address international strategic issues. 
• Boost Economic Engagement: Enhance trade, investment, and technological cooperation, with initiatives like iCET driving economic growth and market access.