US India defense export: The India-US defense partnership has shown amazing improvement, according to the American Chamber of Commerce in India (AMCHAM), an important chamber of US business in India. It has especially examined US-India defense cooperation underlining the need for group efforts to define world security and advance prosperity for both the countries.
The US-India defense cooperation consists on acquisitions, co-production and co-development for worldwide markets, joint ventures, training and innovation, thus improving India’s defense exports. Among the equipment India purchases for defense from the US is a wide spectrum.
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US-India defense export
“US-India relationship has developed into a global strategic partnership based on shared democratic values and increasing convergence of interests on bilateral, regional and global issues,” stated AMCHAM India Director General and CEO Ranjana Khanna. “We thought it prudent and timey to highlight the US-India defence partnerships in the context of the US – National Security Advisor Jake Sullivan’s recent India visit and the Government’s target of achieving $5 billion in defence exports by FY 2024-25,” she said.
“It is important to note that defence exports to the U.S. accounted for over 50% of total exports, strengthening the partnership and exceeded $2.8 billion over the last 5 years,” Ms Khanna also noted. Supporting the Government of India’s mission to improve defense exports, US industry in India, and their Indian partners has helped US become the top defense exports destination for India, according to the AMCHAM report (US-India Defence Partnership: Co-Production & Co-Development).
According to Deccan Chronicle, in the financial year 2022–23, India’s defense exports were $1.6 billion (about ₹16,000 crore), a more than a 10x rise in the past five years. Over 1,000+ MSMEs, academia, start-ups and incubators, American businesses have developed close relationships with many in-country industrial entities, defense PSU’s, Natural byproducts of this collaboration include economic growth, employment creation, and innovation. Research and development, innovation, and skill development strengthen defense capabilities, therefore increasing the influence of this cooperation.
While bringing in improvement in quality of life for over 2.6 million people through initiatives in STEM education, skilling, nutrition, health, livelihood, sanitation, and sustainability through partnerships with science and technology institutes and other foundations, the US defense industry in India has been instrumental in job creation through direct investments and by working with their network of suppliers and joint venture partners and has created over 28,000 direct jobs and gainful employment for an additional 20,000 people.
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AMCHAM notes the highlights of the US-India defense cooperation:
- With over 50% of all shipments to the U.S. totaling more than $2.8 billion in the past five years, the United States has become the top destination for defense exports from India.
- Reaching $1.6 billion in the financial year 2022–23, India’s defense exports show an exponential rise—a stunning ten-fold rise over the past five years.
- Technology transfer, innovation, and skill development are being fostered via joint ventures and alliances between American corporations and Indian entities such as Lockheed Martin-Tata Advanced Systems, Boeing-HAL, BAE Systems-HAL, and GE-HAL.
- Together with programs in STEM education, skilling, health, and sustainability affecting over 2.6 million people, the U.S. defense sector in India created over 28,000 direct jobs and gainful employment for an additional 20,000 individuals.
