India and America signed the SOSA defense agreement, know what it is and how it will benefit

New Delhi: India and the US have signed a new defence agreement. The agreement will help the two countries supply defence equipment and spares to meet each other’s needs. Defence Minister Rajnath Singh has described this partnership as a strong force for global peace and security. Rajnath Singh met US Defence Secretary Lloyd Austin in Washington DC. The two leaders held extensive talks on bilateral defence cooperation, industrial cooperation, regional security and other international issues.Signing of the SOSA agreement
The ‘Security of Supply Arrangement’ (SOSA) was signed during Rajnath Singh’s visit to the US. During this, the two countries also discussed several other aspects such as technology transfer and increasing military cooperation in the Indo-Pacific region. According to officials, the SOSA agreement was signed by Principal Deputy Assistant Secretary of Defense for Industrial Base Policy Vik Ramadas on behalf of the US and Additional Secretary and Director General (Acquisition) Sameer Kumar on behalf of India. This agreement will enable both countries to acquire the necessary industrial resources to overcome sudden disruptions in the supply chain.

Both countries will benefit in the defense sector
Pushan Das, US-India Business Council, said, “The SOSA agreement will increase the avenues for acquisition of defense related products between the two countries. Although this agreement is not legally binding, it will open new avenues for cross investment and partnership between Indian and American companies.” India will now prepare a list of domestic companies that will voluntarily come forward to make every effort to supply military equipment to the US. This is likely to open significant business opportunities for Indian companies in the coming years.

Another agreement is also being discussed
The US has a similar agreement with 17 countries and several global defence companies including BAE, SAAB and Thales. India and the US are also negotiating another agreement – the ‘Reciprocal Defence Procurement Agreement’ (RDP) – which will greatly expand opportunities for Indian manufacturers to engage with US defence giants.

The defense ecosystem of both the countries will be connected
Once the RDP is finalised, India will join the list of 26 countries that have been granted compliant status under the Defense Federal Acquisition Regulation Supplement (DFARS). Only these countries are eligible to supply critical components and parts for US military orders. The agreement will open huge doors for the manufacturing sector, especially in terms of orders for castings and other components made of steel, copper, nickel, titanium and zirconium, which are required for US military orders. It will also connect the defence ecosystems of both countries.

Pushan Das further said, “Signing a ‘Reciprocal Defence Procurement Agreement’ (RDP) is the next step as among other things it will allow India to exempt itself from procurement barriers under the ‘Buy American’ law.” Along with Rajnath Singh’s visit, India and the US also signed a Memorandum of Understanding regarding the appointment of liaison officers. India will deploy the first liaison officer at Headquarters Special Operations Command in Florida, US.