U.S. and India Sign Historic Defence Agreement: A New Chapter in Bilateral Relations

Introduction

On August 22, 2024, a significant development unfolded in U.S.-India relations with the signing of a bilateral, non-binding Security of Supply Arrangement (SOSA) between the U.S. Department of Defense (DoD) and the Indian Ministry of Defence (IN MoD). This agreement, announced on the day Prime Minister Narendra Modi's visits Kyiv, Ukraine, represents a major step forward in the defence partnership between the two nations.

The Security of Supply Arrangement (SOSA)

The SOSA was signed by Dr. Vic Ramdass, Principal Deputy Assistant Secretary of Defense for Industrial Base Policy, representing the United States, and Mr. Samir Kumar Sinha, Additional Secretary and Director General (Acquisitions) for India. The arrangement is designed to provide reciprocal priority support for goods and services essential for national defence, allowing both countries to secure critical industrial resources from one another, especially during supply chain disruptions.

Enhancing U.S.-India Defence Cooperation

The SOSA is a key element in strengthening the U.S.-India Major Defense Partner relationship. It is expected to significantly contribute to the Defense Technology and Trade Initiative (DTTI) by enabling deeper cooperation between the defence industrial bases of both countries. This cooperation will include co-development, co-production, and co-sustainment initiatives, which are crucial for enhancing the defence capabilities of both nations.

Dr. Ramdass underscored the importance of this agreement, calling it a "pivotal moment" in the evolving defence partnership between the U.S. and India. He also highlighted the upcoming DTTI meeting as an opportunity to further deepen this cooperation.

Strategic Importance of the SOSA

The SOSA is more than just an agreement; it is a strategic tool that enhances the resilience of the defence supply chains of both nations. By committing to support each other’s priority delivery requests for critical defence resources, the U.S. and India are positioning themselves to better address potential supply chain challenges in times of peace, emergency, or conflict.

The U.S. will provide India with assurances under the Defense Priorities and Allocations System (DPAS), a legally binding priority system for industrial goods and services. In return, India will establish a government-industry Code of Conduct, encouraging its industrial base to prioritize support for U.S. defence needs. This mutual support mechanism is crucial for ensuring that both countries can meet their national security requirements effectively.

Expanding Global Defence Partnerships

India's inclusion as the eighteenth SOSA partner of the U.S. highlights its growing importance as a global defence ally. Other SOSA partners include major defence players like Australia, Japan, and the United Kingdom. The agreement with India is part of a broader strategy by the U.S. to strengthen its global defence partnerships, ensuring greater interoperability and security within the defence supply chain.

The SOSA is expected to facilitate the establishment of working groups, communication mechanisms, and streamlined processes to proactively address supply chain issues. It also serves as a foundation for developing investment strategies that ensure redundancy and security in defence resources.

Summing Up: A Milestone in U.S.-India Relations

The signing of the SOSA marks a significant milestone in U.S.-India relations, particularly in the defence sector. It reflects the deepening strategic partnership between the two nations and their commitment to enhancing mutual defence capabilities. As India continues to play a more prominent role on the global stage, this agreement is a testament to the strength of its relationship with the United States.

Although non-binding, the SOSA, much like the Quadrilateral Security Dialogue (QUAD), underscores the solid foundations of U.S.-India relations. It demonstrates their active collaboration to act as a bulwark against China's push southwards in the Indo-Pacific region. This is also another example of India's robust foreign policy under the leadership of Prime Minister Narendra Modi, where it can simultaneously engage with the U.S. as well as Russia in crucial defence and energy sectors. The SOSA is poised to have far-reaching implications for the defence industries of both countries, fostering greater collaboration and ensuring that both nations are better equipped to face the challenges of the modern security environment.