On June 5, India and the United States agreed on an “ambitious new plan” to enhance defense-industrial cooperation. The plan will prioritise multiple projects focused on jointly developing military platforms and hardware and, most importantly, countering China.
The agreement was reached ahead of Indian Prime Minister Narendra Modi’s scheduled state visit to Washington on June 22, where he will engage in discussions with President Joe Biden.
A statement by the Indian defense ministry highlighted that the talks between Singh and Austin specifically focused on enhancing industrial cooperation. The statement mentioned that both sides will work towards identifying opportunities for jointly developing new technologies and producing existing and new defense systems. Additionally, they aim to foster greater collaboration between the defense start-up ecosystems of the two countries.
As a result, a roadmap for US-India Defense Industrial Cooperation was finalised, which will serve as a guiding policy for the next few years. The expected cooperation will enhance India and the US’s shared understanding of the need to counter China’s influence and military capabilities in the Asia-Pacific region.
A plan for advancing defense industry?
India relies on Russia for approximately half of its military supplies, but it has been diversifying its sources by procuring defence equipment from countries like the United States, France, and Israel.
Countries, including India, aim to develop their arms industry to reduce its dependence and develop domestic defense capacity. The arms industry is a global sector that involves the manufacturing, selling, and maintaining of weapons, military technology, and related equipment. This sector’s defense contractors or arms manufacturing companies mainly produce weapons for national armed forces.
Moreover, India aims to collaborate with global defence manufacturers and encourage them to manufacture weapons and military equipment within India. This approach serves the dual purpose of meeting domestic demand and enabling exports. Having defense industry will put countries in more economy, political, and security power as they can develop and expand their military equipment industry.
As stated by defense analyst Rahul Bedi, India plans to acquire 18 high-altitude, long-endurance armed drones from General Atomics Aeronautical Systems Inc. The estimated price for this purchase is anticipated to be between $1.5 billion and $2 billion and is expected to be deployed in critical border regions of India, where tensions exist with China and Pakistan.
India and US deeper engagement?
India and US’s close defence relations signal a shared understanding and purpose to counterweight China’s regional dominance. Like killing two birds with one stone, the US defence agreement with India reduced dependence on Russia’s arms supply, and the US gained more support to counter China. The US emphasised that US and India view coercion from China and Russian aggression against Ukraine as threatening national sovereignty.
China’s growing influence and military capabilities in the Asia-Pacific region have raised concerns in neighbouring countries, especially in India. Due to the history of border conflicts and disputes between India and China, India has actively sought opportunities to strengthen its defense capabilities and build stronger alliances to counter China’s influence.
On the other hand, the United States is increasingly focused on China’s assertiveness and efforts to expand its military capabilities. Therefore, the United States has been actively seeking partnerships and alliances with countries in the Indo-Pacific region to maintain stability and its security interests. The US aims to preserve its status quo by limiting China’s growing power.
The US-India cooperation is a strategic move of the two countries to counter China’s influence and military advancements. The two states’ cooperation would include joint development of military platforms and equipment, sharing advanced technology, and strengthening defence industry relations. As a result, both nations can enhance their military capabilities and improve their readiness to tackle various security challenges, including those originating from China.
Moreover, the enhancement of defense industry relations fosters a rise in defense trade and investment, providing economic benefits to both countries. Additionally, it promotes the growth of domestic defense industries, leading to the creation of job opportunities and the transfer of technology.