Summary: A ten-year extension to the defence co-operation agreement between the USA and India has been announced during President Barack Obama’s three-day New Delhi visit.
This ten-year extension further strengthens the already ten-year old defence agreement between the two countries. The renewed pact is expected to elevate cooperation in criminal law enforcement, military information exchange and legal matters.
The agreement commits both the USA and India to jointly develop and build four defence systems while intensifying counter-terror cooperation and undertaking joint military exercises under a Defence Framework Agreement.
Growing defence cooperation
Indian Prime Minister Narendra Modi said: “Today, we have decided to take our growing defence cooperation to a new level. We have agreed, in principle, to pursue co-development and co-production of specific advanced defence projects. These will help upgrade our domestic defence industry and expand the manufacturing sector in India.
“We will also explore cooperation in other areas of advanced defence technologies. We have renewed our defence framework agreement.”
President Obama said: “Our countries will deepen bilateral security cooperation against terrorist groups. We will further enhance counter-terrorism capabilities, including in technology.”
The agreement also focuses on further cooperation in cyber security. It will also focus on projects for joint weapons development and production as well as technology transfer through Defence Technology & Trade Initiative.
It is believed that the agreement will be a significant opportunity for India to strengthen its domestic defence industry.
With defence budgets dropping in the west, strengthened relationships across the globe could point to places like Asia becoming a strong market for future investment opportunities.
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