Bussiness
India, US ink 2 key agreements as Rajnath Singh visits Washington
India and the US have signed two key agreements as Defence Minister Rajnath Singh began his official visit to Washington to further boost the comprehensive global strategic partnership between the two countries.
The agreements signed on Thursday pertain to the Security of Supplies Arrangement (SOSA) and a Memorandum of Agreement regarding the Assignment of Liaison Officers.
“Two important documents have been signed in Washington DC as Raksha Mantri Shri @rajnathsingh’s visit to the United States begins. Senior defence officials from both sides concluded the Security of Supplies Arrangement (SOSA), and Memorandum of Agreement regarding the Assignment of Liaison Officers,” the Ministry of Defence (MoD) shared in a post on X on Friday, along with some photographs of the event.
Singh arrived here on Thursday on a four-day visit to the US.
The US and India entered into a “bilateral, non-binding Security of Supply Arrangement (SOSA)”, the US Department of Defence (DoD) said in a press release on Thursday.
Through this SOSA, the US and India agree to provide reciprocal priority support for goods and services that promote national defence. The Arrangement will enable both countries to acquire the industrial resources they need from one another to resolve unanticipated supply chain disruptions to meet national security needs, it said.
The SOSA was signed by Dr Vic Ramdass, Principal Deputy Assistant Secretary of Defence for Industrial Base Policy, on behalf of the US, and Samir Kumar Sinha, Additional Secretary and Director General (Acquisitions), on behalf of the Ministry of Defence (MoD).
“This Security of Supply Arrangement represents a pivotal moment in the US-India Major Defence Partner relationship and will be a key factor in strengthening the US-India Defence Technology and Trade Initiative (DTTI),” said Ramdass.
“I look forward to OUSD(A&S) hosting the next DTTI meeting this fall to deepen cooperation between our respective defence industrial bases and pursue bilateral co-development, co-production, and co-sustainment initiatives,” he said.
In the Arrangement, the US and India commit to support one another’s priority delivery requests for procurement of critical national defence resources.
The US will provide India assurances under the US Defence Priorities and Allocations System (DPAS), with programme determinations by DoD and rating authorisation by the Department of Commerce (DOC). India will in turn establish a government-industry Code of Conduct with its industrial base, where Indian firms will voluntarily agree to make every reasonable effort to provide the US priority support, the release said.
With an expanding global supply chain for DOD, SOSAs are an important mechanism for DoD to strengthen interoperability with US defence trade partners. The Arrangements institute working groups, establish communication mechanisms, streamline DoD processes, and proactively act to allay anticipated supply chain issues in peacetime, emergency, and armed conflict. They are also a useful tool in developing investment strategies to ensure redundancy and security, it said.
India is the 18th SOSA partner of the US. Other SOSA partners include Australia, Canada, Denmark, Estonia, Finland, Israel, Italy, Japan, Latvia, Lithuania, the Netherlands, Norway, the Republic of Korea, Singapore, Spain, Sweden, and the UK.
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First Published: Aug 23 2024 | 2:30 PM IST