India and US ink crucial defence pact to address unanticipated supply chain disruptions



India and US ink crucial defence pact to address unanticipated supply chain disruptions

https://www.moneycontrol.com/news/india/india-and-us-ink-crucial-defence-pact-to-address-unanticipated-supply-chain-disruptions-12804730.html

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  1. Submission Statement:

    India and the US inked a critical defence pact in Washington DC on Thursday. The agreement was signed during the US visit of Union Defence Minister Rajnath Singh.

    Senior defence officials from both the sides concluded the Security of Supplies Arrangement (SOSA), and Memorandum of Agreement regarding the Assignment of Liaison Officers, an official statement said on Friday morning.

    SOSA:

    As part of the agreement, the United States and India have agreed to provide reciprocal priority support for goods and services that promote national defence.

    The pact 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.

    “This Security of Supply Arrangement represents a pivotal moment in the US – India Major Defense Partner relationship and will be a key factor in strengthening the US – India Defense Technology and Trade Initiative (DTTI),” Dr Ramdass said.

    WORKINGS:

    The U.S. will provide India assurances under the U.S. Defense Priorities and Allocations System (DPAS), with program determinations by DoD and rating authorization 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 U.S. priority support.

    SIGNIFICANCE:

    India is the 18th SOSA partner and only the second non-treaty ally after Singapore to have this agreement.

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