U.S., India Sign Security of Supply Arrangement to Strengthen Defense Partnership

The agreement establishes a framework for the U.S. and India to provide each other with reciprocal priority support for goods and services that are essential for national defense.
  • Defensemirror.com bureau
  • 05:38 AM, August 23, 2024
  • 550
U.S., India Sign Security of Supply Arrangement to Strengthen Defense Partnership

The Department of Defense (DoD) of the United States and the Ministry of Defence of the Government of India (IN MoD) have entered into a bilateral Security of Supply Arrangement (SOSA), marking a significant step in the defense cooperation between the two nations.

The agreement, which is non-binding, was signed by Dr. Vic Ramdass, Principal Deputy Assistant Secretary of Defense for Industrial Base Policy, on behalf of the U.S., and Mr. Samir Kumar Sinha, Additional Secretary and Director General (Acquisitions), on behalf of India.

The SOSA establishes a framework for the U.S. and India to provide each other with reciprocal priority support for goods and services that are essential for national defense. This arrangement aims to mitigate unanticipated supply chain disruptions and ensure that both countries can access critical industrial resources to meet their national security needs.

In June, the American Chamber of Commerce in India (AMCHAM) reported that over 50% of India's defense exports are destined for the United States, with shipments to the U.S. alone exceeding $2.8 billion over the past five years.

Dr. Ramdass emphasized the importance of this arrangement, stating, "This Security of Supply Arrangement represents a pivotal moment in the U.S.–India Major Defense Partner relationship and will be a key factor in strengthening the U.S.–India Defense Technology and Trade Initiative (DTTI)."

Under the terms of the SOSA, both nations commit to supporting each other's priority delivery requests for critical defense resources. The U.S. will provide assurances to India under the U.S. Defense Priorities and Allocations System (DPAS), with program determinations made by the DoD and rating authorization by the Department of Commerce (DOC). India, in turn, will establish a government-industry Code of Conduct, encouraging Indian firms to prioritize support for U.S. requests.

SOSAs, such as the one signed with India, are an essential tool for the DoD to enhance interoperability with its defense trade partners. These arrangements facilitate the establishment of working groups, streamline communication mechanisms, and address potential supply chain issues during peacetime, emergencies, and armed conflicts. Additionally, they support investment strategies that ensure redundancy and security within the defense industrial base.

India is the eighteenth country to enter into a SOSA with the U.S., joining a group that includes nations such as Australia, Canada, Japan, and the United Kingdom. This agreement is expected to play a crucial role in deepening the defense partnership between the U.S. and India, as both nations continue to pursue co-development, co-production, and co-sustainment initiatives.

The next meeting of the U.S.–India Defense Technology and Trade Initiative (DTTI) is scheduled to be hosted by the Office of the Under Secretary of Defense for Acquisition and Sustainment (OUSD(A&S)) later this fall, where further cooperation under the SOSA is expected to be discussed.

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