Introduction: A New Level of Strategic Convergence.
On the side-lines of the ASEAN Defence Ministers’ Meeting in Kuala Lumpur (2025), India and the United States signed the ‘Framework for the U.S.- India Major Defense Relationship’ in a momentous occurrence.
The agreement is an extension of the 2015 framework and is a major step forward in expanding defence industrial cooperation, technology co-development and co-production of advanced weapons.
This agreement signals the development of the India- U.S. relationship —
- From a transactional buyer-seller relationship to a strategic, technology-sharing partnership,
- From being dependent on import to being collaborative,
- And from merely cooperating to engaging in institutionalised defence innovation.
Today, defence cooperation between New Delhi and Washington is not only about weapons — it is about innovation ecosystems, start-up linkages, supply chain resilience and joint industrial transformation.
With the world geopolitical landscape we face in 2025 — rife with Indo-Pacific tensions, critical technology rivalries and transnational supply chain shifts — India- U.S. defense Relations provide certainty to both nations’ strategic and industrial calculations.
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Historical Overview: From Non-Alignment to Strategic Partnership
| Period | Key Developments |
|---|---|
| 1950s–60s | Despite India’s non-alignment, the U.S. supplied Fairchild C-119 transport aircraft and assisted India during the Congo crisis by airlifting troops under a UN mission. After the 1962 Sino-Indian War, the U.S. sanctioned $500 million in military aid to support India. |
| 1974–1998 | India’s nuclear tests (Pokhran I in 1974 and Pokhran II in 1998) led to major diplomatic rifts and U.S. sanctions, pausing defence cooperation. |
| 2001–2004 | Post-9/11, the global war on terror catalysed renewed India–U.S. cooperation. Signing of GSOMIA (2002), High Technology Cooperation Group, and Next Steps in Strategic Partnership (NSSP) established a framework for high-tech trade and intelligence sharing. |
| 2005–2020 | Period of foundational growth: New Framework for Defence Cooperation (2005), Defense Technology and Trade Initiative (2012), and the “Big Four” foundational agreements — LEMOA (2016), COMCASA (2018), and BECA (2020) — formalised interoperability and tech-sharing. |
| 2023–Present | The Framework for the U.S.–India Major Defence Partnership signed by Rajnath Singh and U.S. counterpart Pete Hegseth in Kuala Lumpur strengthened commitments to co-production, advanced research, and joint export potential under the Atmanirbhar Bharat vision. |
Current Defence Trade and Economic Snapshot (2025)
India & U.S. Defence Trade Value: Exceeded USD 25 billion in 2024 after being only USD 200 million in 2000, demonstrating rapid growth in bilateral defence relations.
Significant Deals:
- GE and HAL F414 Jet Engine Deal (2023): Co-production in India with close to 80% indigenous production content represents the first defence aerospace technology transfer.
- L&T and General Atomics (GA-ASI) Partnership (2024): To manufacture advanced combat drones (MQ-9B) in India for the Indian armed forces and potentially export to other countries.
- Current Platforms: Deliveries continue, under the long-term contract for MH-60R Seahawks, Apache AH-64E attack helicopters, and Chinook heavy-lift helicopters.
Current Challenges:
- Technology Transfer Issues: Companies remain at an impasse over export control laws (ITAR) and licensing restrictions that limit the extent of collaboration.
- Localisation vs. IP Protection: India’s demands for higher domestic value addition and ownership of IP often create conflicts with U.S. industry practices.
- Cost and Maintenance: Ongoing negotiations to reduce lifecycle costs of U.S. platforms being deployed in India.
India’s Push for Defence Manufacturing: The Atmanirbhar Bharat Perspective
India’s defence policy is currently shaped by a singular idea, Atmanirbharta (self-reliance) through technology, innovation, and participation by the private sector.
The intent is unequivocal: transition India’s status from being the world’s largest defence importer towards becoming a centre for high-end military manufacturing and exports.
1- From Imports to Exports
India has undergone a silent revolution in defence manufacturing.
- Defence exports have reached ₹23,622 crore (USD 2.8 billion) in FY 2023-24, which is a tenfold increase in seven years.
- Imports reduced by 21% in the last five years (SIPRI, 2024), demonstrating the success of indigenisation programs.
- Made-in-India systems such as the BrahMos cruise missile, Akash surface-to-air missile, and the PINAKA multi-barrel rocket launcher are now being exported to over ten countries, notably the Philippines, Armenia, and Vietnam.
- India’s private defence sector — once marginalised — is now an exporter of components, sub-systems, and UAV technologies. This marks a change in mindset — from a position of dependence to one of capability, and from being a security importer to an exporter.
2- Manufacturing Goals and Industrial Ecosystem
India’s aims go beyond self-sufficiency-the goal is to become a defence manufacturing super power:
- Rajnath Singh(India’s defense minister) targets ₹3 lakh crore defence production by 2028, with 50% contribution expected from the private sector.
- Over 600 industrial licences issued; 70% of India’s new defence procurements now come from domestic manufacturers.
- The DRDO–Safran 120 kN Jet Engine Project (2024) marks India’s rise in next-generation aerospace propulsion technology.
- Indigenous systems like Tejas, Arjun, and INS Vikrant prove India designs and operates world-class defence platforms independently.
- A robust ecosystem unites DRDO, L&T, Tata, and Bharat Forge to build a full-spectrum defence manufacturing base.
3- Start-Ups and Innovation: The iDEX Revolution
- The most dynamic component of India’s defence ecosystem, is its innovation architecture — the iDEX or Innovations for Defence Excellence.
- Backed by $344 million, iDEX has supported 400+ start-ups developing next-generation defence technologies across India.
- Core innovation areas include AI warfare, autonomous drones, robotics, cyber security, and space-based reconnaissance systems.
- iDEX is seen as India’s DARPA moment, linking military needs with private sector innovation and technology.
- DISC and INDUS-X connect Indian defence innovators with U.S. and allied innovation ecosystems for global collaboration.
In a way it is becoming a new “DefenceTech Start-Up Nation” which connects innovation with strategic autonomy.
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U.S.–India Technological and Industrial Collaboration
| Framework / Initiative | Objective | Impact |
|---|---|---|
| DTTI (Defense Technology & Trade Initiative) | Joint research, co-development, and co-production of advanced systems. | Marks a transition from a buyer-seller dynamic to an innovation-based strategic partnership. |
| INDUS-X (Innovation Bridge) | Connects start-ups, venture funds, and research hubs across India and the U.S. | Accelerates joint prototyping, tech exchange, and supply chain integration. |
| GE–HAL F414 Jet Engine Deal (2023) | Co-production under Major Defence Partnership (MDP) framework. | Ensures up to 80% local manufacturing content, making it one of India’s most indigenised U.S. defence projects. |
| Framework for Major Defence Partnership (2024) | Strengthens cooperation in design, logistics, maintenance, and emerging tech. | Reinforces India’s position as a strategic Indo-Pacific security and industrial partner. |
Current Context: Operation Sindoor and Field Trials
The capability of Made-in India systems is no longer limited to testing or demonstrations, we are now proving it in competition with real world operations. During Operation Sindoor in 2024, indigenously developed weapon systems proved their efficacy in battle.
In his post operation remarks, Defence Minister Rajnath Singh called the operation a proof of concept of India’s “Design, Develop, and Deliver” capacity; he further suggested we need to move faster on self-reliance, and to integrate with the private sector for even more development.
Operation Sindoor was not a showcase of new technology in the confines of simulation or experimentation, it was a true demonstration of Defence technology proven in the field.
Operation Sindoor showcased the efficacy of Made-in-India Systems like PINAKA rockets, Akash SAMs, and Swathi Radars — this was not aspirational as some might try to claim, this was combat proven.
Challenges & Trade Conflicts
- Technology Transfer Limits: U.S. export laws like ITAR slow advanced tech transfer, hindering joint defence production.
- IPR vs. Localisation: India’s Make in India push often clashes with U.S. firms’ IP protection concerns.
- Strategic Balancing: India seeks autonomy while deepening defence ties with the U.S. and maintaining flexibility with Russia.
- Trade Imbalance: Despite $25 billion in defence trade, India still seeks fair access to technology and local manufacturing share.
The Future: Building the Defence Industrial Engine
- Joint Innovation Corridors: Link Indian and U.S. start-ups via INDUS-X and iDEX to co-develop dual-use defence technologies.
- Third Country Exports: Promote co-branded India–U.S. defence exports to friendly Indo-Pacific and African nations.
- Policy Alignment: Synchronise Make in India rules with U.S. security norms to attract major global OEMs.
- Emerging Domains: Expand collaboration in AI warfare, cyber defence, and space technologies.
- Annual Review: Launch an India–U.S. Defence Manufacturing Index to track industrial cooperation and tech absorption.
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UPSC Significance:
- GS Paper II: India-U.S. Strategic Relations, Bilateral Defence Agreements
- GS Paper III: Indigenisation of Defence Production, iDEX, Atmanirbhar Bharat, Technology Transfer
Likely Questions:
- Examine in what way the Indo-U.S. Defence Partnership links to India becoming a global defence manufacturing hub.
- Next Questions: Evaluate the role of DTTI, INDUS-X, iDEX, etc. in enabling India’s defence innovation ecosystem.
- Next Questions: Critically assess what effect being a Major Defence Partner with the U.S. has on India’s strategic autonomy.
Conclusion: From Dependence to Dominance
The Indo-U.S. Defence Partnership has come to signify India’s awakening as an industrial nation.
From import dependence based on licenses to joint innovation, India is moving from a buyer of weapons to the producer of defence technology.
With frameworks such as INDUS-X, iDEX and the (2024) Major Defence Partnership fostering co-creation, India appears to be well on its way to achieving strategic autonomy and global defence dominance — making “Atmanirbharta” a strategy, not just a slogan.
FAQ’s
There are four significant agreements: LEMOA (2016), COMCASA (2018), BECA (2020), and GSOMIA (2002). The most recent Framework for the U.S.–India Major Defence Partnership (2024) — jointly signed by Rajnath Singh and Pete Hegseth at the recent ASEAN Summit in Kuala Lumpur — enhances co-production and technology sharing.
Trade has grown from $200 million in 2000 to $25 billion in 2024. There have been several significant projects, including GE–HAL F414 jet engines as well as L&T–GE Aviation Systems International’s combat drones, that support India’s trajectory toward an Atmanirbhar Bharat.
Recent examples are Yudh Abhyas 2024 (Alaska), Cope India 2024 (Kalaikunda), Tiger Triumph (Bay of Bengal), and Malabar 2024. All of these military exercises contribute to enhanced interoperability and Indo-Pacific security.
Programs such as DTTI and INDUS-X are ways for the U.S. and India to collaborate in research and development, and innovation. The iDEX scheme has supported more than 400 start-ups with $$344 million. Finally, India reached ₹23,622 crore in defence exports in in the 2024 fiscal year, which indicates an evolution from imports to innovation.
Barriers include U.S. export control limits, IPR disputes, and balancing strategic autonomy. Yet, the 2024 Major Defence Partnership Framework aims to resolve these by promoting joint design and manufacturing.
