U.S. Secretary of Defence Chuck Hagel is in New Delhi to meet with his Indian counterpart Arun Jaitley. They are expected to discuss the regional security environment, defence exercises and trade. Sameer Patil, associate national security fellow at Gateway House, comments on the expectations from the dialogue and bilateral defence trade.
Statement:
“Defence ties are the most stable dimension of the India-U.S. bilateral, prospering despite other elements of the relationship witnessing a decline. The U.S. recognises the immense potential for its companies in the Indian arms market. The two countries also recognise the security threats in Asia and acknowledge the need to be strong partners in this area.
India and the U.S. carry out extensive army, air force and naval exercises together, bilaterally and multilaterally. In fact, the U.S. now conducts more military exercises with India than any other country. After holding the joint army exercise Yudh Abhyas 2014 and trilateral naval exercise Malabar 2014 with Japan, both countries are likely to discuss the modalities of holding a joint air force exercise this year.
Defence trade is the most promising dimension of the bilateral. U.S. defence companies have steadily expanded their involvement in India’s arms market as defence acquisitions from the U.S. reached an aggregate worth of $10 billion in recent years. This is likely to grow since India is expected to spend around $100 billion on arms imports. The recent announcement from Finance and Defence Minister Arun Jaitley to liberalise the foreign investment norms for the defence sector and raise it to 49% have certainly made U.S. defence companies optimistic.
The Defence Trade and Technology Initiative, announced in 2012, is expected to be the primary platform for both countries to explore avenues for technology transfer and joint weapons development and production. This kind of cooperation can transform India-U.S. defence ties from buyer-seller to a more evolved, strategic relationship.”
For more information or interview requests, please contact Reetika Joshi at joshi.reetika@gatewayhouse.in.