India-US Agreement on Defence Supply Chain

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Source- This post on India-US Agreement on Defence Supply Chain has been created based on the article “India, US ink agreement for defence equipment supply” published in “Business Standard” on 24th August 2024.

Why in News?

Recently, the United States and India’s Defence Ministry have signed the Security of Supplies Arrangement (SOSA). This signing coincided with the beginning of Defence Minister Rajnath Singh’s four-day visit to the United States.

About India-US Agreement on Defence Supply Chain

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Source: Tribune
AspectsDescription 
About

1. India and the United States signed a Security of Supply Arrangement (SOSA) to address disruptions in the defence supply chain.
2. With this agreement, India becomes the 18th country to partner with the US under SOSA. Other countries include Australia, Canada, Japan, the UK, and several European nations.

PurposeThe agreement allows both countries to access each other’s resources if there are interruptions in the supply chain, like the delays India is facing in receiving jet engines from the US for its Tejas fighter jets.
Key Features

1. The pact includes clauses that enable India and the US to access industrial resources from one another to handle unexpected supply chain problems ensuring they can meet their national security needs.
2. Both nations agreed to give each other priority for goods and services that support national defence.
3. The US and India pledged to support each other’s requests for the delivery of critical defence resources on a priority basis.

Benefits

1. Strengthening Defence Ties: The SOSA agreement strengthens the relationship between India and the US in defence trade and cooperation, particularly in times of peace, emergencies, and conflicts.
2. Support for Indian Vendors: The arrangement could make it easier for US companies to source supplies from Indian vendors, boosting India’s defence manufacturing sector.
3. US Defense Assurance: The US has assured India support under its “Defense Priorities and Allocations System” focusing on bilateral defence supplies.

UPSC Syllabus: Defence 

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