INDIA-US DEFENCE RELATIONS

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Context

During the Indian Defense Minister's visit to the USA, an agreement on the Security of Supply Arrangement (SOSA) was signed.

About the Security of Supply Arrangement (SOSA)

• It is a bilateral agreement between India and the U.S. designed to ensure that both countries can quickly access the defence goods and services they need, even during emergencies or supply chain disruptions.

How Does SOSA Work?

• Under SOSA, both India and the U.S. agree to give priority to each other’s defence-related needs. It means that if one country faces a shortage of critical defence supplies, the other country will prioritize their support.
• Both countries will collaborate on supply chain disruptions that may occur unexpectedly. Such a collaborative approach helps to ensure operational efficiency and seamlessly handles any shortfalls that may arise from time to time.
• A Code of Conduct will be established between Government and Industry ensuring that Indian Companies prioritize U.S. defence needs whenever such requirements arise.
  • • In exchange, the U.S. will offer assurances about necessary supplies it controls through its Defense Priorities and Allocations System (DPAS) to India.

Why is SOSA Important?

• Strengthening Alliances: By ensuring that both countries help each other with critical supplies, solidifies their strategic partnership and enhances their mutual defence capabilities.
• Reducing Supply Chain Risks:
  • • In today’s complex global landscape, supply chains can be vulnerable to various disruptions, including geopolitical tensions and natural disasters.
    • SOSA helps mitigate these risks by establishing a framework for priority support and collaboration between the two countries.
• Boosting Defense Technology and Trade Initiatives:
  • • This agreement supports the broader U.S.-India Defense Technology and Trade Initiative (DTTI), which focuses on the co-development and co-production of defence technologies.
    • By developing a closer defence-industrial relationship, SOSA contributes to the success of these initiatives.

India-US Bilateral Relations

• Cold War Era: India and the US had a strained relationship during the Cold War, marked by distrust and differences, particularly over India's nuclear program.
• Post-Cold War: Relations have significantly improved, with growing cooperation in economic, political, and strategic areas.

Bilateral Trade	●The USA was India’s second largest trading partner with total trade reaching approximately $118.28 billion in 2023-24. USA was the top trading partner of New Delhi during 2021-22 and 2022-23. China has emerged as India's largest trading partner in 2023-24. ●The US was the third-largest source of foreign direct investment (FDI) into India in 2023-24. India received the highest FDI from Singapore in 2023-24.
Defence and Security	●Foundational Pacts: Key agreements include the Logistics Exchange Memorandum of Agreement (LEMOA, 2016), the Communications Compatibility and Security Agreement (COMCASA, 2018), and the Basic Exchange and Cooperation Agreement (BECA, 2020). ●Status: India was designated a Major Defense Partner by the US in 2016. ●Procurements: India has procured US defence equipment worth nearly $20 billion, including aircraft, helicopters, and naval platforms. ●Military Exercises: Regular exercises like Yudh Abhyas (Army), Malabar (Navy), and Cope India (Air Force) reflect growing military cooperation.
Space Cooperation	●Artemis Accords: Signed to promote peaceful exploration of space. ●Civil Space Joint Working Group: Facilitates cooperation in space exploration. ●ISRO-NASA Collaboration: Includes projects like the NASA-ISRO Synthetic Aperture Radar (NISAR) satellite and training Indian astronauts.
Multilateral Cooperation	●Both countries collaborate with the United Nations, G20, IMF, World Bank, and WTO. ●Along with Australia and Japan, the US and India promote a free and open Indo-Pacific through the Quad Alliance.
Nuclear Cooperation	●Civil Nuclear Deal (2005): India agreed to separate its civil and military nuclear programs and place civil facilities under International Atomic Energy Agency (IAEA) safeguards, while the US agreed to full civil nuclear cooperation.

 

Challenges

• India maintains a strong commitment to strategic autonomy, balancing its relationships with multiple global powers while deepening ties with the U.S.
  • • This approach can sometimes create friction, particularly when U.S. policies or expectations seem to conflict with India's independent foreign policy decisions.
• India's calculative stance on issues like the Russian invasion of Ukraine has led to tensions with the U.S. and other Western nations.
• Despite growing bilateral trade, there are issues related to trade imbalances, market access, and economic policies that can cause friction between the two countries
• The evolving security dynamics in the Indo-Pacific region, particularly with an increasingly assertive China, pose challenges for both India and the U.S. in aligning their strategies.
• Domestic political and economic considerations in both countries can affect the ability to pursue deeper bilateral cooperation.

Way Forward

• India and the U.S. should strengthen communication by utilizing a strategic platform like the 2+2 mechanism to address areas of divergence and seek common ground while respecting India's strategic autonomy.
• Both nations should enhance dialogue mechanisms such as the Trade Policy Forum and Commercial Dialogue to address trade-related issues, work towards resolving market access concerns, and promote a more balanced trade relationship.
• Strengthening trilateral and multilateral frameworks like the Quad and engaging in joint military exercises and strategic dialogues can help both countries address regional security challenges collaboratively.
• Clear agreements and frameworks on intellectual property and technology transfer should be established to facilitate smoother collaboration in critical and emerging technologies.
• Both governments should work to align their domestic policies with the goals of their bilateral relationship and address any domestic challenges through cooperative strategies and policy adjustments.

Conclusion

• The India-US relationship has evolved into a comprehensive partnership with significant cooperation across economic, defence, space, and multilateral domains. Addressing challenges and strengthening cooperation can enhance their strategic alliance and influence on the global stage.

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Source:

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PRACTICE QUESTION Q. How can India maintain its strategic autonomy while deepening its strategic partnership with the US, especially in the context of rising global tensions and China's growing influence in the Indo-Pacific region?