India’s defence exports to the United States (US) has grown to account for over 50 per cent of the total exports, exceeding $2.8 billion during the last 5 years, said Ranjana Khanna, Director General and CEO – American Chamber of Commerce in India (Amcham).
US-India Defence Partnership
“US-India Defence Partnership: Co-Production & Co-Development”, laid emphasis over the fact that the US has emerged as the number one destination for India’s defence exports. Its report “indicates that supporting the Government of India’s mission to enhance defence exports, US industry in India, and their Indian partners, have contributed to the US becoming the number 1 defence exports destination for India”.
India’s defence exports to the US
India’s defence exports in FY22-23 stood at $1.6 billion, showing over a ten-fold increase in 5 years. “We thought it prudent and timey to highlight the US-India defence partnerships in the context of the US – National Security Advisor, Jake Sullivan’s recent India visit; and the Government’s target of achieving $5 billion in defence exports by FY24-25,” Ranjana Khanna, Director General and CEO of Amcham said. “It is important to note that Defence exports to the US accounted for over 50 per cent of total exports, strengthening the partnership and exceeded $2.8 billion during the last 5 years”, she added. India’s defence acquisitions include a diverse range of equipment from the US, the report also said.
Joint ventures and collaborations between U.S. companies and Indian entities
According to the Stockholm International Peace Research Institute (SIPRI) report on global arms trade, 2024, France and US are emerging as key suppliers to India, collectively accounting for 46 per cent of its arms imports. American companies have fostered strong partnerships with many in-country industrial entities, defence PSU’s, over 1,000 MSMEs, academia, start-ups and incubators, Amcham elaborated in its findings. Joint ventures and collaborations between U.S. companies and Indian entities, such as Lockheed Martin-Tata Advanced Systems, Boeing-HAL, BAE Systems-HAL, and GE-HAL, are fostering technology transfer, innovation, and skill development, it pointed out.
Jobs through direct investment
The US defence industry in India, as per the report, has created jobs through direct investments and by collaborating with their network of suppliers and joint venture partners. It has created over 28,000 direct jobs and a gainful employment for an additional 20,000 people, while bringing in improvement in quality of life for over 2.6 million people through initiatives in STEM education, skilling, nutrition, health, livelihood, sanitation, and sustainability through partnerships with science and technology institutes and other foundations.
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