The Industrial Security Annex (ISA), signed between India and the U.S. at the second 2+2 dialogue in Washington, will open the door for U.S. defence companies to partner with the Indian private sector for several multi-billion dollar deals in the pipeline, especially the deal for 114 fighter jets.  

• The ISA is a part of the General Security of Military Information Agreement (GSOMIA), which India signed with the U.S. long back.  
• It became critical as India opened up the defense sector to the private sector and the Strategic Partnership policy, which has few big military platforms and is reserved for the Indian private sector. U.S. companies are in the race for multi-billion-dollar deal for 114 fighter jets, among other deals.  

Source: ForumIAS factly