India and the United States have just signed a new defense agreement called the Security of Supply Arrangement (SOSA) on August 22, 2024, during Defence Minister Rajnath Singh’s US visit. This deal is important because it makes sure that both countries can help each other get the defense supplies they need, especially in critical times. Let’s take a closer look at how this agreement will affect defense trade between India and the U.S.
Two important documents have been signed in Washington DC as Raksha Mantri Shri @rajnathsingh’s visit to the United States begins.
— रक्षा मंत्री कार्यालय/ RMO India (@DefenceMinIndia) August 23, 2024
Senior defence officials from both the sides concluded the Security of Supplies Arrangement (SOSA), and Memorandum of Agreement regarding the… pic.twitter.com/FsxZaLW1fe
Faster Access to Defense Supplies
In a situation where India or the USA urgently needs defense supplies, SOSA ensures that India and the U.S. can quickly get the equipment and services they need. This agreement makes it easier and faster for both countries to purchase defense items, thanks to the U.S. Defense Priorities and Allocations System (DPAS).
The U.S. Department of Defense and the Department of Commerce will prioritize these purchases, making sure the supplies reach where they are needed on time. This keeps both countries ready and prepared for any situation.
Better Teamwork Between Defense Forces
SOSA isn’t just about getting supplies; it’s also about making sure India and the U.S. defense forces can work together more effectively.
The deal sets up special groups and communication channels to solve any problems that might arise. This means that any issues with the supply chain can be fixed quickly, ensuring that both nations remain ready and strong.
Strengthening Defense Industry Ties
SOSA is also set to strengthen the Defense Technology and Trade Initiative (DTTI), which aims to deepen the cooperation between India and the U.S. in the defense sector. The agreement opens up new opportunities for both countries to work together on developing, producing, and maintaining defense technologies. The agreement encourages Indian companies to prioritize support for the U.S., helping to build a resilient supply chain that can withstand any challenges.
India’s Growing Role in Global Defense
With SOSA, India joins a group of important U.S. defense partners, becoming the eighteenth country to do so. This includes key allies like Australia, Canada, and the United Kingdom. This partnership highlights India’s growing importance in global defense.
By joining this group, India is taking a big step forward in becoming a leading voice in defense cooperation around the world. It’s not just about India and the U.S.; it’s about building a network of defense partnerships that strengthens global security. Expect to see India and the U.S. standing strong together, ready to tackle global security challenges as partners.
Indian Defence Exports to the US
In the first quarter of 2024-2025, Indian defense exports jumped by 78 percent. Exports in April-June 2024 reached ₹6,915 crore, up from ₹3,885 crore during the same period the previous year.
The United States has emerged as the largest market for Indian defense exports. The U.S. alone accounts for nearly 50 percent of India’s total defense exports, solidifying its position as the biggest buyer. India’s defense exports products include ammunition, small arms like sniper rifles, and bulletproof jackets to more sophisticated items such as drones, light torpedoes, armored vehicles, and fast attack ships.
While the U.S. stands as the largest importer of Indian defense exports, Myanmar, Israel, and Armenia have also become key customers. India has secured major contracts like the BrahMos missile deal with the Philippines and agreements for artillery and air defense systems with Armenia.
