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Context:
U.S. President’s attempt to rework arms transfer policy provides for an opportunity for India
What is the existing policy on arms sale in U.S.?
- Arms transfers by U.S. happen primarily through Foreign Military Sales, Direct Commercial Sales, and Foreign Military Financing
- These are controlled by stringent laws like Arms Export Control Act
- Sale of arms is guided less by commercial considerations rather than strategic ones
Why is arms transfer important for U.S.?
- It is a key leverage of global influence
- It reduces the cost of procurement for the U.S. military by spreading the cost, and by employing 1.7 million people
- the defence industry is a key component in U.S. economy and politics
What changes do President Trump want to bring?
- Trump emphasizes commercial benefits of arms sale and de-emphasize the strategic angle
- He wants to reduce the Foreign Military Financing to the least, except for Israel.
- Further, he wants American partners to buy more weapons from it.
- This is also a move towards reducing trade deficits with key partners such as South Korea and Japan.
How would this benefit India?
- Change in U.S. arms policy is expected to change dynamics of India-U.S. defence trade
- India is expected to be more comfortable with weapons purchases as commercial deals
- For U.S. India could emerge as a reliable, non-proliferating buyer of its arms
