Defence ties: India, US eye new thrust

The re-election of Donald Trump as the 47th President of the United States of America has led to widespread speculation and uncertainties both in international and domestic politics. However, one area where expectations are almost certain is the strengthening of India-US relations, as evidenced by the strong partnership during his previous presidency. A key element of this partnership is strong security and defence collaboration between the two countries.

The 2016 designation of India as a Major Defence Partner, along with the signing of key agreements in military logistics, communications security, and geospatial intelligence, set the stage for the decade’s fastest-growing defence partnership. The cooperation extends beyond governments, with initiatives such as the 2012 Defence Technology and Trade Initiative, the 2019 Industry Security Annex, and the 2023 establishment of INDUS-X creating a robust framework for private sector collaboration between the two nations. Estimates suggest that since 2008, India has bought nearly $20 billion worth of American-origin defence equipment.

However, despite the substantial growth of this relationship, several challenges persist. A key aspect of India-US defence partnership is the transfer of high-end technology, involving innovation, co-development, and co-production of critical technologies. The latest development in this, hailed as “revolutionary” was the signing of an MoU in June 2023 between General Electric Aerospace and Hindustan Aeronautics Limited to co-produce F414 jet engines in India and transferring 80% of the technology. These engines, part of the same family as the F404 engines powering the Indian Air Force Tejas LCA Mk1 and Mk1A, will equip its Light Combat Aircraft Mk2, enhancing its engine performance, durability, and reducing life-cycle costs. While the deal signals growing trust, the 18-month delay in predecessor F404 variant deliveries has caused the postponement of MiG retirements, as F404-powered Tejas aircraft were intended to replace MiG aircraft. Earlier this year, an “engine seizure” caused the first-ever crash
involving IAF’s Tejas Fighter Jets that were powered by F404 engines, raising speculations over technological compatibility and the impact of delays on the broader defence modernisation.

A similar pattern of delay can be seen in the recently concluded US $3.8 billion deal for the purchase of 31 MQ-9B SkyGuardian and SeaGuardian High Altitude Long Endurance (HALE) drones made by General Atomics. The agreement was signed in 2023 and cleared by India’s Cabinet Committee on Security in October 2024. However, this acquisition has materialised after eight long years.

Such delays and regulatory obstacles have been impeding pace in India-US defense realisations. One of the first defense proposals between India and the US during the previous Trump presidency was in 2017 for the transfer of the Electromagnetic Aircraft Launch System (EMALS) for Indian Navy’s aircraft carriers. At the time, General Atomics was the sole producer of the technology and China was trying to develop its own. The proposal, however, never fructified, and India is now developing its own indigenous EMAL system.

Regulatory challenges

The delays are a cumulative effect of the complex regulatory procedure in the US, designed to protect against risks like intellectual property theft and cyber espionage. US export controls regime, particularly the International Traffic in Arms Regulations (ITAR), significantly complicates procurement and transfer processes due to the cumbersome review process, difficulties in approval of export license, extensive inter-departmental consultation, and post-export compliances. While the procedure is relaxed for NATO and non-NATO allies, Indian defence stakeholders continue to face challenges due to India not being within this alliance structure. These difficulties should serve as a cautionary tale, highlighting the need to prioritise timely deliveries and frequent trials for smoother execution of future projects. A more streamlined procedure is needed to simplify and expedite technology exports, aligning more closely with the Strategic Trade Authorisation (STA-1) granted to India.

On the Indian side, bureaucratic red-tapism continues to attract criticism and skepticism from the US startups. The Modi government has revamped the defence sector and pushed for development of the private sector but regulatory bottlenecks hinder cooperation between defence-industrial complexes of both countries. Furthermore, US speculations over the robustness of India’s intellectual property ecosystem have also prevented technology transfer from reaching full potential.

India enjoys a strong bipartisan support within the US political landscape. The personal relationship between Trump and Modi further intensifies the scope of this partnership. However, the Indian leadership must remain cautious as “America First” will loom heavy on Trump’s foreign policy. As transfer of technology is of high priority for India in defence collaborations, elements of this sector will likely be at odds with Trump’s agenda. How India navigates these challenges remains to be seen.

(Vivek is Visiting Fellow, Observer Research Foundation America; Shivani is a doctoral scholar at Political Science and International Relations Department, University of Delaware)