The US-India Defence Partnership Witnesses Big Jump

The US-India defence collaboration covers a wide range of activities including acquisitions, co-production, and co-development for global markets. (Representational image: Reuters)

In the defence alliance between India and the United States there has been a significant advancement, says the American Chamber of Commerce in India (AMCHAM). This partnership, focusing on cooperative efforts, is seen as crucial for global security and economic prosperity for both nations.

AMCHAM’s report, “US-India Defence Partnership: Co-Production & Co-Development,” reveals that the US has become the top destination for India’s defence exports, accounting for over 50 percent of total exports. In the last five years, defence exports to the US have exceeded US$2.8 billion. India’s defence exports reached US$1.6 billion in the financial year 2022-23, showing a tenfold increase over five years.

The US-India defence collaboration covers a wide range of activities including acquisitions, co-production, and co-development for global markets. These activities are aimed at boosting India’s defence exports. The partnership also involves joint ventures, training, and innovation. India has acquired a diverse array of equipment from the US., strengthening its defence capabilities.

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Ms Ranjana Khanna, Director General and CEO of AMCHAM India, highlighted the development of the US-India relationship into a global strategic partnership. She emphasized that this partnership is built on shared democratic values and a convergence of interests on various issues. She pointed out the importance of this alliance in light of recent high-level visits, such as that of US National Security Advisor Jake Sullivan, and India’s goal of reaching US$5 billion in defence exports by the fiscal year 2024-25.

American companies have established strong partnerships with various Indian entities, including defence public sector units, over 1,000 micro, small, and medium enterprises (MSMEs), academia, start-ups, and incubators. This collaboration has led to economic growth, job creation, and innovation. The US defence industry in India has played a vital role in job creation, generating over 28,000 direct jobs and providing gainful employment to an additional 20,000 individuals. Moreover, these efforts have improved the quality of life for over 2.6 million people through initiatives in STEM education, skilling, nutrition, health, livelihood, sanitation, and sustainability.

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The report also underscores the shared interests of the U.S. and India in countering terrorism, ensuring maritime security, and maintaining a free and open Indo-Pacific region. Collaborative defence efforts are seen as pivotal in pursuing these objectives.

Key highlights of the US-India defence partnership include the exponential growth of India’s defence exports, significant job creation, and numerous joint ventures between US and Indian companies. Notable collaborations include Lockheed Martin-Tata Advanced Systems, Boeing-HAL, BAE Systems-HAL, and GE-HAL, which have fostered technology transfer, innovation, and skill development.

These companies are seen as vital partners in India’s inclusive growth, contributing to the development of a robust defence ecosystem.