India and the US bolster defence ties with preliminary Security of Supply Arrangement

India and the US bolster defence ties with preliminary Security of Supply Arrangement
US and Indian flags intertwined / bno - Taipei Office
By bno - Chennai Office September 17, 2024

India and the US have deepened their defence cooperation with the signing of two key agreements, marking a significant step in the evolving defence and strategic partnership between the two nations. On 22 August 2024, the US Department of Defense (DoD) and India’s Ministry of Defence formalised a Security of Supply Arrangement (SOSA), a bilateral, non-binding pact that will enhance the two nation's ability to support each other during critical defence supply chain disruptions.

Dr. Vic Ramdass, Principal Deputy Assistant Secretary of Defense for Industrial Base Policy, represented the US in the signing, while India’s Additional Secretary and Director General (Acquisitions), Samir Kumar Sinha, signed on behalf of the Indian government. The agreement is aimed at prioritising the delivery of goods and services that are essential to national security for both countries, mitigating the risks posed by unexpected supply chain issues.

Significance of the SOSA

The Security of Supply Arrangement (SOSA) is designed to enable the US and India to provide reciprocal support for defence-related goods and services during periods of supply chain strain. This would ensure that both nations can access the necessary resources to meet defence needs, especially in times of conflict or emergency. Through SOSA, the US and India commit to prioritising each other’s procurement requests for critical defence resources. The US will offer India preferential access under its Defence Priorities and Allocations System (DPAS), overseen by the US Department of Defense and the Department of Commerce. In turn, India will establish a voluntary Code of Conduct with its domestic industrial base, ensuring that Indian firms make every reasonable effort to prioritise US orders.

This cooperation is expected to enhance both countries’ ability to maintain their national security during unforeseen disruptions, while bolstering supply chain resilience. Dr. Ramdass emphasised the importance of the agreement, noting that it is a "pivotal moment" in the US-India defence relationship. He also highlighted that SOSA would play a crucial role in strengthening the US-India Defence Technology and Trade Initiative (DTTI), which seeks to promote co-development, co-production, and co-sustainment between the two countries' defence industries.

The broader framework of defence cooperation

India’s inclusion in SOSA marks its place as the 18th nation to enter such an arrangement with the US. Other partners include key US allies like Australia, Canada, Israel, and the United Kingdom. These agreements are part of the broader US effort to enhance the interoperability and supply chain security with its defence trade partners. SOSA arrangements typically include mechanisms to set up communication channels and working groups that proactively address potential supply chain issues before they escalate, whether during peacetime or in crises. This includes exploring joint investment strategies to ensure redundancy in critical supply areas and supporting both nations' defence industries in times of emergency. In addition to SOSA, the US and India are also working to finalise a Reciprocal Defence Procurement (RDP) agreement.

Unlike the non-binding SOSA, the RDP agreement will be legally binding, mandating the prioritisation of defence procurement requests. The RDP aims to streamline defence acquisitions, improve the interoperability of defence systems, and promote joint production. It will also support US companies seeking to invest in India, helping them navigate domestic procurement regulations such as India’s "Make in India" initiative, which focuses on local manufacturing.

Liaison Officer Agreement

India and the US have also signed a Memorandum of Agreement (MoU) regarding the Assignment of Liaison Officers. Under this agreement, Indian military officers will be posted at key US military commands. The first Indian liaison officer is expected to be assigned to the US Special Operations Command in Florida. This move is seen as part of broader efforts to enhance operational cooperation and information-sharing between the two countries.

India's growing defence relationship with the US

The signing of SOSA and the potential finalisation of the RDP agreement come at a time when the US-India defence relationship has been growing rapidly. The two countries have made significant strides in areas of co-production, technological collaboration, and industrial cooperation, particularly under the 2023 US-India Roadmap for Defence Industrial Cooperation. During Indian Defence Minister Rajnath Singh’s recent visit to the US, both sides agreed to prioritise joint projects in key areas such as jet engines, unmanned platforms, munitions, and ground mobility systems.

India’s defence cooperation with the US has expanded beyond trade and industrial collaboration to include strategic and operational ties. In recent years, India has signed several key foundational agreements with the US, including the Logistics Exchange Memorandum of Agreement (LEMOA), which facilitates reciprocal access to logistics and support between the militaries, and the Communications Compatibility and Security Agreement (COMCASA), which secures military communications between the two nations. These agreements enhance India's ability to leverage US origin platforms and access advanced defence systems.

Additionally, the two nations are pushing forward with the establishment of an India-US Defence Acceleration Ecosystem (INDUS-X), an initiative that promotes innovation and collaboration in defence technologies. INDUS-X was launched in June 2023 during Indian Prime Minister Narendra Modi’s official state visit to the US It is a key component of the US-India Initiative on Critical and Emerging Technology (iCET), which aims to deepen cooperation in advanced technological domains.

Growing significance of US-India defence ties

The 2015 US-India Defence Framework Agreement and the 2013 Joint Declaration on Defence Cooperation are foundational agreements that have paved the way for deeper engagement, including increased arms sales and joint exercises. India’s designation as a Major Defence Partner by the US in 2016 further elevated its status, allowing it to access a wider range of military technologies and platforms. Indian military procurements from the US have also increased, with significant acquisitions such as MH-60R Seahawk helicopters and M777 howitzers.

The growing defence cooperation is part of a broader strategic alignment between the two countries, particularly in the Indo-Pacific region, where both nations are working to enhance maritime security and counterbalance growing Chinese influence. As the US and India continue to expand their defence cooperation, the signing of SOSA and the progress towards an RDP agreement signal a deepening of strategic ties. This partnership is poised to play a crucial role in shaping the future of the Indo-Pacific security architecture

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