Context:
Recently, India and the United States signed two key defense pacts during Defence Minister Rajnath Singh’s four-day visit to Washington DC.
More on the News:
- These pacts include a non-binding Security of Supply Arrangement (SOSA) and a Memorandum of Agreement regarding Assignment of Liaison Officers.
- These pacts aim to strengthen bilateral defense cooperation and industrial collaboration between India and the US.
Key Highlights:
- India will deploy its first Liaison Officer to the Headquarters Special Operations Command in Florida, US, improving information sharing and strategic cooperation.
- Both nations expressed satisfaction over the SOSA conclusion, viewing it as a pivotal moment in the US-India major defense partner relationship.
Security of Supply Arrangement (SOSA):
- The SOSA mandates reciprocal priority support for goods and services promoting national defense, and enhancing supply chain resilience between the two countries.
- SOSA facilitates priority delivery of critical national defense resources between partnering countries.
- It establishes working groups, communication mechanisms, and streamlined processes to address potential supply chain issues.
- India has now become the 18th 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.
- SOSA will be a key factor in strengthening the Defence Technology and Trade Initiative (DTTI) between the two countries.
India and US Bilateral Relations:
- The bilateral relations between the two countries have evolved into a “global strategic partnership”, based on common democratic principles and shared interests on bilateral, regional, and global issues.
Bilateral Trade: The US has emerged as India’s biggest trading partner in 2022-23 on account of increasing economic ties between the two countries.
- According to the provisional data of the commerce ministry, the bilateral trade between India and the US has increased by 7.65 percent to USD 128.55 in 2022-23 as against USD 119.5 billion in 2021-22. It was USD 80.51 billion in 2020-21.
- Exports to the US rose by 2.81 percent to USD 78.31 billion in 2022-23 as against USD 76.18 billion in 2021-22, while imports grew by about 16 percent to USD 50.24 billion.
- The bilateral trade between India and the U.S. stood at $118.28 billion in 2023-24.
Defence Cooperation: The countries have signed several foundational agreements since 2016, enhancing interoperability and strategic alignment. India has now signed all three foundational agreements with the US:
- Logistics Exchange Memorandum of Agreement (LEMOA): Signed in 2016, this agreement allows for logistical support and access to each other’s military bases.
- Communications Compatibility and Security Agreement (COMCASA): Signed in 2018, this agreement facilitates secure communication and data sharing between the two militaries.
- Basic Exchange and Cooperation Agreement for Geo-Spatial Cooperation (BECA): Signed in 2020, this agreement enables the exchange of geospatial information, enhancing operational efficiency.