The US and Indian Army exercising together somewhere in Northern India. | PTI.
India-US defence cooperation has evolved over the last two decades. There is bipartisan support for this relationship which has endured geostrategic challenges. Both countries have now ensured all enabling agreements and processes are in place to take this relationship to the next level which inspires higher trust. Fructification of a major joint programme of technological and strategic value would provide the much-needed impetus to this prospering relationship and dispel the apprehensions of many on both sides. Clear deliverables must be articulated by both sides. Both President Trump and Prime Minister Narendra Modi have the mandate and leadership characteristics to elevate this relationship to a level where there are tangible outcomes and mutual benefits. No doubt this will require concessions and considerations from both sides. While many divergences exist, it is the convergences which have strengthened the relationship; this is something both sides must nurture. The convergence between the two leaders strengthened by the geostrategic landscape provides a conducive environment for this to happen.
Introduction
The defence cooperation between India and the USA has substantially strengthened in the last two decades with bipartisan support on both sides. Shared values of promoting a rules-based order, freedom, global security and stability are the primary drivers of this relationship. There is greater confidence and belief that more can be achieved. Geopolitical developments in the Indo-Pacific have also contributed and so has the growth of India as an economically-powerful nation. A major factor in the burgeoning defence cooperation is the economics of this relationship. India has now purchased every military equipment from the USA except fighter aircraft and submarines.
President Donald Trump assumed office for his second term on 20th January 2025. He shared an excellent relationship with Prime Minister Narendra Modi in his first term. He has come back to the White House on his slogan “Make America Great Again”. He has been vocal about his approach to relationships and has been explicit in his plans. Dr. Jaishankar occupying a front-row seat during the inauguration ceremony underscores strong strategic ties between the two countries and the importance Trump 2.0 attaches to this relationship. Dr. Jaishankar later stated that the relationship is strong and there was an agreement that it will get bolder, bigger and more ambitious.
Prime Minister Modi called President Trump to congratulate him on 28th January 2025. During the call “The President emphasized the importance of India increasing its procurement of American-made security equipment and moving toward a fair bilateral trading relationship”. This perhaps clearly lays down US expectations from India in the realm of defence and security cooperation. Both Prime Minister Modi and President Trump are disruptive leaders who can push the envelope of this relationship.
Historical Context
Ties between two large democracies waxed and waned till the beginning of this century. The relationship has progressively strengthened over the last two decades with enhanced defence cooperation, signing of agreements, the declaration of India as a Major Defence Partner and the procurement of defence equipment by India.
Defence ties strengthened during Trump 1.0; in fact, there were a lot of firsts. The first tri-services Exercise Tiger Triumph was conducted in 2019. Key agreements like the Communications Compatibility and Security Agreement (COMCASA), Basic Exchange and Cooperation Agreement (BECA), and Industrial Security Annex (ISA) were signed. These agreements enhanced military cooperation, intelligence sharing and defence technology collaboration.
During this period India was also elevated to the Strategic Trade Authorisation (STA-1) status which facilitates access to advanced technologies. Contracts were signed for additional Boeing AH-64 Apache combat helicopters for the Indian Army and Lockheed Martin MH-60R helicopters for the Indian Navy. President Trump also revived the QUAD.
Likely Trajectory Under Trump 2.0
While it is difficult to predict how the defence relationship pans out, the anticipated trajectory based on the current indicators and geopolitical environment would be more plausible and practical. The three pillars of defence cooperation are bilateral and multilateral exercises, exchanges and dialogues; defence procurement and; co-development and -production under the Defence Technology and Trade Initiative (DTTI).
Bilateral Cooperation, Exercises and Defence Relationship: China continues to grow. The unveilingof the two latest-generation fighter aircraft and the Deepseek R1 AI platform are clear signals that China continues its efforts to achieve military and technological parity with the USA. The Indo-Pacific will remain contentious and India will play an importantrole in this region in the maritimedomain. Strengthening of QUAD is also likely to be pursued. The USA has been keen on militarising the QUAD, which India may not be willing to do in view of the fresh alignments between China and Russia and India’s relationships with them.
14th Edition of the Indo-US Joint Special Forces exercise “VAJRA PRAHAR 2023”. | Ministry of Defence.
● India and USA have signed all the major enabling agreements like the General Security of Military Information Agreement (GSOMIA), Communications Compatibility and Security Agreement (COMCASA), Basic Exchange and Cooperation Agreement (BECA), Logistics Exchange Memorandum of Agreement (LEMOA) and Industrial Security Annex (ISA). India and USA recently signed two agreements, the Security of Supplies Arrangement (SOSA) and a Memorandum of Understanding (MoU) on the Assignment of Liaison Officers. The 2+2 ministerial dialogue provides guidance and oversight to this relationship. So, all the enabling provisions for defence cooperation exist between the two nations. The truepotential of these agreements has not been achieved so far. India must leverage these agreements for greater exchange of data and products. A clear way ahead must be laid down in the implementation of these agreements.
● A logical follow-up of the SOSA is the Reciprocal Defence Procurement Agreement (RDP). The RDP is a more formal and legally-binding agreement that mandates prioritization of defence orders, paving the way for more extensive joint production and technological collaboration. It must be negotiated to be mutually beneficial for each other’s military industry.
● The strength of cooperation and goodwill between the two militaries can be measured by the fact that India does more exercises with the US military than any other nation and outside of NATO, the US military exercises the most with India. India and the USA conducted their first tri-service Exercise Tiger Triumph in 2019. An expanding Western and US-origin equipment profile in the three services allows increased complexity of bilateral exercises and their elevation to a multi-domain composition. Additionally, cross-posting more officers between the two nations would enhance trust and transparency in the relationship.
● In its Indo-Pacific construct the USA would demand more from India in the maritime domain. Reciprocally, India must be able to gain more from the USA in surface, air, cyber and space domains since our threats lie more in these domains than in the continental construct.
Defence Procurement: India has bought all types of platforms except fighter aircraft and submarines worth USD 25 billion since 2007, with the General Atomics MQ-9B Sky/Sea Guardian UAVs being the latest acquisition. Negotiations are underway to co-produce General Electric GE-414 engines for the Hindustan Aeronautics Limited (HAL) Light combat Aircraft (LCA) Mk2 and the Defence Research and Development Organisation (DRDO)-HAL Advanced Medium Combat Aircraft (AMCA) fighter aircraft. The USA is keen to sell fighter aircraft as part of the Multi Role Fighter Aircraft (MRFA) requirements, Stryker infantry combat vehicles, more helicopters, weapons and Boeing P-8I long-range maritime patrol aircraft.
● Currently, the partnership in this area has both opportunities and challenges. The opportunity for the USA is that India has huge defence equipment needs that require modern technological solutions which the USA possesses. The challenge is that the relationship needs to shift from seller-buyer to co-development, co-production and collaboration in consonance with the make in India initiative of Prime Minister Modi. Another opportunity is plug in the Indian private industry, start-ups and Micro, Small and Medium Enterprises (MSMEs) into US defence majors. This would make US defence products more cost effective and also strengthen global supply-chains. The US can potentially diversify defence products in collaboration with India, the market for which is being slowly wrested by China and Russia.
● The approval/licensing systems in both nations are laborious and time consuming. Many in India do not view the USA as a reliable partner due to the sanctions imposed on India earlier and also due to the close control it exercises on the deployment and employment of its defence equipment. The withdrawal of the Lockheed Martin F-35 Lightning-II and General Dynamics F-16 Fighting Falcon from flying display in the upcoming Aero India 2025 is a case in point. The US Government should be urged to fast-track pending deliveries of Apaches for the Indian Army and engines for the LCA Mk 1A and allow its defence majors to collaborate with Indian companies on aero engines, sensor fusion, drones, propellants and metallurgy.
● India will negotiate substantial transfer of technology and share of work with fewer caveats in any fresh procurement. It is believed that the pressure on the Indian Government on the MRFA project will be more from the present administration purely on economic grounds. Given President Trump's penchant for striking deals, India could pitch for F-35 fighters and assistance from the USA for faster realisation of the AMCA.
● The private defence industry and MSMEs have made substantial progress in recent years. US primes are sourcing components from India; in fact, the US happens to be a major contributor to Indian exports. This could be expanded.
● President Trump formed the Space Force during his first term. He is likely to strengthen this force further. India is also progressing in this domain and military-space cooperation could expand. India could leverage its cost-efficient solutions in exchange for specific technology from the USA.
Co-development, Co-production and Future Technologies: The Defence Technology and Trade Initiative (DTTI) was launched to overcome/reduce unique national bureaucratic structures, acquisition models, budget processes and strengthen the defence relationship by collaborative technology exchange and cooperative research which would promote the co-development and co-production of defence systems. This initiative has underperformed in the last 12 years. A first-of-its-kind partnership on co-production of US sonobuoys in support of the US and Indian defence industrial bases was achieved recently.
● There are many reasons for the non-performance of this initiative. Initially, the US attributed lack of progress to delays in India signing the foundational agreements.However, not much changed after India signed all of them. Both sides continue to exercise divergent and stringent approval processes. Difference in the level of technological development in the ecosystem on both sides is another constraint. After numerous meetings, proposals and counter proposals to keep this initiative alive, low-scale projects have been successfulwhile any major project remains elusive. Now that all agreements are in place and private industry participation in India has expanded, the DTTI should generate credible deliverables. The initiative should be reviewed by a committee to identify impediments which could be overcome by suitable changes in regulations by both sides. Start-ups in both countries are producing excellent innovations and future technologies. The governments could facilitate collaborations which would be mutually beneficial.
● Co-production of GE-414 engines for the LCA Mk2 needs to be sped up. Aero engines, drones, AI, quantum radars, electronic warfare, underwater domain awareness, next-generation rotary wing platforms, small and modular weapons, Intelligence Surveillance and Reconnaissance (ISR), space and cyber are the areas in which both countries could enhance collaboration.
Conclusion
India-US defence cooperation has evolved over the last two decades. There is bipartisan support for this relationship which has endured geostrategic challenges. Both countries have now ensured all enabling agreements and processes are in place to take this relationship to the next level which inspires higher trust. The fructification of a major joint programme of technological and strategic value would provide the much-needed impetus to this prospering relationship and dispel the apprehensions of many on both sides.
Clear deliverables must be articulated by both sides. Both President Trump and Prime Minister Narendra Modi have the mandate and leadership characteristics to elevate this relationship to a level where there are tangible outcomes and mutual benefits. No doubt this will require concessions and considerations from both sides. While many divergences exist, it is the convergences which have strengthened the relationship; this is something both sides must nurture. The convergence between the two leaders strengthened by the geostrategic landscape provides a conducive environment for this to happen.
(Exclusive to NatStrat)
Endnotes
Indus Waters Dispute: India’s Strategic Victory in Neutral Expert Proceedings
