President Trump hosted Prime Minister Narendra Modi for an official working visit in Washington DC on 13 Feb 25. PM Modi was one of the first international leaders to meet President Trump in his second term. India and USA have had a steady and progressively strengthening relationship over the last two decades. Prime Minister Modi has, since 2014, visited USA ten times, the most to any country during his tenures as the Prime Minister of India. This perhaps is the indication of the importance India attaches to this bilateral partnership.
The recent visit was significant in many ways. It was the first working visit after President Trump assumed office for the second term. The visit signifies the broad bipartisan support this relationship receives in both nations. Another striking feature of the relationship has been the attention on strengthening convergences while downplaying divergences. The three areas in defence cooperation between the militaries are exercises and personnel exchanges, procurement of platforms and weapons and technology cooperation for co-development and co-production. Another importance facet of this relationship lies in the strategic collaboration in the Indo-Pacific.
The visit was also noteworthy in view of the announcements by President Trump on imposing tariffs and selling more military equipment to India to perhaps, balance the trade imbalance. The bilateral trade between in 2024 stood at USD 129.2 Billion with a trade surplus of USD 45.7 Billion in India’s favour.
Historical Perspective
India-US relations have experienced many ups and downs since India attained independence. Immediately after independence the relations between the two countries were strong and flourished in every facet. In fact, USA recognised the McMahon line and offered India military assistance during the Indo-China war of 1962. United States Air Force (USAF) provided air assistance and dropped supplies and weapons for the Indian troops. The relations remained strong till the India-Pakistan war of 1965. Evolving Cold War dynamics and President Nixon’s support to China and Pakistan led to beginning of estranged relations between India and USA which deteriorated further after nuclear tests by India in 1974 and signing of India-USSR friendship treaty. USA imposed wide ranging sanctions against India after the nuclear tests by India in 1998, leading to further straining of relations. India’s defence development and indigenisation efforts were adversely affected by these sanctions.
A turnaround in the relationship commenced with the visit of President Clinton in Mar 2000. US lifted economic sanctions in 2001, followed by commencement of energy dialogue in 2005. Defence ties received boost with signing of Defence Framework agreement in Jun 2005, this document was renewed for ten years in 2015 and is now due for renewal again. Signing of civil nuclear deal further strengthened ties and paved the path of resurgence in civil and military relations. The first India-US strategic dialogue was convened in Jun 2010 with USA declaring India as “an indispensable partner”. From then on, the relationship has consolidated further with defence emerging as the strongest pillar.
India-US Relationship since 2014
Prime Minister Modi assumed office in May 2014 and travelled to USA for his first visit in Sep 2014. Since then, the PM has visited the US ten times, the most by any PM of India. These 11 years have witnessed major landmarks in defence cooperation between the two nations. India was declared as the Major Defence Partner in 2016 by President Obama and the defence framework agreement was renewed for ten years till 2025. PM Modi met President Trump in Jun 2017 and both leaders reaffirmed their commitment to deepening defence cooperation between the two largest democracies. India was elevated to Strategic Trade Authorization tier 1 status in 2018, which allows India to receive license-free access to a wide range of military and dual-use technologies.
Initiation of two plus two dialogue involving Foreign and Defence ministers of both countries in Sep 2018 provided added impetus to the relationship. President Trump made his first visit to India in Feb 2020, with a mega rally at Ahmedabad. PM Modi was once again hosted at the White House in Sep 2021, this time to strengthen QUAD with the PMs of Australia and Japan. USA and Indian officials signed the Initiative on Critical and Emerging Technologies (iCET), which aims to expand bilateral technology and defense cooperation, including provisions on weapons, artificial intelligence, and semiconductors in Jan 2023.
PM Modi made the first official state visit to USA in Jun 2023 signaling flourishing relationship. The latest meeting between President Trump and PM Modi in USA on 12 Feb 2025 heralded announcement of the U.S.-India Catalyzing Opportunities for Military Partnership, Accelerated Commerce & Technology (COMPACT) for the Twenty-First Century and Transforming the Relationship Utilizing Strategic Technology (TRUST). COMPACT aims at bolstering defence co-operation and co-production of military equipment and enhancing bilateral trade to USD 500 Billion from USA. This includes every type, except fighter aircraft and submarines. The equipment procured by India has served its purpose exceptionally well, though there have been some delays in delivery and operationalization in some cases.
US companies are sourcing components, and spares from Indian companies, and many Indian defence startups are working with US defence majors. US defence majors have also set up their R&D centers in India. Recently, Mahindra and Anduril have partnered to co-develop and co-produce advanced autonomous maritime systems, AI-enabled Counter Unmanned Aerial System (CUAS) technologies, and command and control (C2) software.
President Trump during his call with PM Modi on 28 Jan 2025 “empahsised the importance of India increasing its procurement of American-made security equipment and moving toward a fair bilateral trading relationship”. This is the first clear indication of the expectations USA has from India on defence procurement as part of overall balance of trade. This was further cemented when President Trump, after his meeting with PM Modi on 13 Feb 2025 said that Washington is paving the way to provide New Delhi with F-35 fighter jets as part of increasing military supplies by billions of dollars.
The leaders pledged to accelerate defence technology cooperation across space, air defence, missile, maritime and undersea technologies, with the U.S. announcing a review of its policy on releasing fifth generation fighters and undersea systems to India. This paves the way for India to procure Submarines and fifth-generation fighter aircraft the only platforms India has so far not procured from USA. The other weapons systems on offer are the Stryker combat vehicles and Javelin Anti-Tank Guided Missiles (ATGM) for the Army and additional P-8I Long Range Maritime Patrol and Strike aircraft for the Navy.
During their meeting the two leaders reaffirmed their unwavering commitment to a dynamic defence partnership spanning multiple domains. This provides a window to raise the complexity of exercises to include multi domain scenarios, including cyber and space domains. To advance defence ties further, the leaders announced plans to sign this year a new ten-year Framework for the U.S.-India Major Defence Partnership in the 21st Century.
Leadership of both nations over the last one decade has recognised cooperation in emerging and critical technologies especially in the field of defence. Many initiatives and agreements have been signed in pursuance of this goal. Many would argue that some of the recent agreements are perhaps repacked versions of old initiatives. The fact is that the time has come to implement them into realistic deliverables. That will demonstrate the will of both nations to constructively move forward in co-development and coproduction of defence technologies which would go a long way in dispelling the current concerns that exists in minds of some in India on reliability of US as a strategic and reliable partner in defence and sharing of critical technologies.
While some co-production projects have been initiated in the maritime domain, the recent Autonomous Systems Industry Alliance (ASIA) initiative will pave the way for co-development of AI-powered surveillance, targeting, and reconnaissance systems for the Indo-Pacific theater. There is a need to replicate the same in the land and air domain too, especially in the areas of drones, fifth generation fighter aircraft, integration of US equipment with other Indian military equipment, Artificial Intelligence, Quantum computing, weapons, Space, Cyber and Intelligence sharing.
Way Forward
With signing of all mutually enabling agreement it is now time for both sides to move forward in realizing the full potential of these agreements in form of concrete projects and deliverables. There is a need to further strengthen quality of bilateral exercises and progress them into a truly tri services format to include cyber and space for the multi domain operations. Some proposals in realizing this are as below.
- Need to increase complexity of exercises to include ISR, drones, and all commonly operated equipment in tri services format, expanding to multi domain format. Also, cross posting of more officers will enhance trust and transparency in the relationship.
- Space and Cyber are two emerging military domains which will have tremendous impact on all future operations. Both the nations are directing efforts to strengthen these domains. India has established Defence Space and Cyber Agencies which could interact with US Space Force and Cyber Command through regular exchange programmes and visits. India could be an observer in future Space Force exercises.
- USA declared India as a Major Defense Partner (MDP) in 2016. There is a need to provide legal and legislative provisions for implementing this provision. Both sides need to work together in formulating a common vision to implement this vision.
- Security of Supplies Arrangement (SOSA) was signed on 22 Aug 2024. This is a non-binding agreement. The next step to make it executable for specific products is the Reciprocal Defence Procurement Agreement (RDP). RDP is a more formal and legally binding agreement that mandates prioritization of defence orders, paving the way for more extensive joint production and technological collaboration. RDP must be negotiated to be mutually beneficial for each other’s military industry.
- All future conflicts will be dynamic, with changing character of warfare which will require large data compilation and analysis this requires large computational power and AI tools. India and USA could cooperate in this sphere for future multi domain operations and decision support systems customised to meet individual military requirements by leveraging iCET.
- The US military industry could source more equipment, spares and components from Indian defence MSMEs to strengthen supply chains and collaboration. Both sides should encourage setting up of more Joint Ventures (JV) with higher technology collaboration and transfer and accelerate innovation.
- USA must graduate from the buyer-seller relationship in military equipment to a more mutually inclusive relationship which will ensure equitable partnership in production and utilization of military equipment without any restrictions from either side.
- There is a need to identify and address obstacles in realizing the full potential of various initiatives and agreements. Defence Technology and Trade Initiative (DTTI) being a case in point. There is a need to align procurement and legal procedures to achieve tangible outcomes in the area of co-development and co-production. There is also a need for both sides to be aligned in identification of projects under this initiative, success has so far eluded because of multiple factors like processes, legal issues and level of technological evolution, especially on the Indian side.
- Both militaries can expand their cooperation in humanitarian assistance and disaster relief efforts and support each other logistically by leveraging LEMOA and other agreements.
- USA must assure India of fast-tracking delivery of GE-404 engines for LCA, Apache helicopters for the Indian Army, coproduction and ToT for the GE-414 engines for LCA Mk2 and accelerated delivery of Sea/ Sky Guardian UAVs and their integration into the net centric operations. This will go a long way in allaying concerns in the minds of a section of Indian population which views US as an unreliable partner.
- Both sides must form a committee to identify opportunities for catalyzing military partnerships in the fields of exercises, technology and coproduction possible under COMPACT and other agreements. This committee may also nominate a high-level Point of Contact (PoC) who would regularly review the progress made in implementation and provide feedback to the national leadership.
- India has traditionally adopted a cautious and conservative approach, which it now seems to be shedding. A more proactive approach with hard negotiations and clear requirements needs to be adopted. A case in point is the F-35. If IAF feels it is the right capability, then there should be no hesitation in asking for it.
Conclusion
India-US relationship has evolved into strategic friendship based on shared values and common interests. Prime Minister Modi’s visit to the USA was no ordinary visit. It has laid down a vision for defence cooperation in emerging technologies, co-development, co-production and collaboration. This meeting has identified and directed all concerned to focus on technology and innovation in further enhancing defence cooperation.
Over the last 11 years the defence partnership has strengthened many folds and has withstood geo-strategic challenges. The relationship should now rise from tokenism to identifying and achieving tangible outcomes. It is extremely important that the areas identified by the leaders of both nations are now transformed into deliverable projects to enhance interoperability and also boosts military capabilities of both nations. Future technologies need to be clearly documented by both sides for co-development, co-production and collaboration, so as to enhance trustworthiness at all levels. It is now upon the executors to convert vision into reality.
