General
The United States is preparing to expand defence sales to India, a top American official said, highlighting the growing strategic and economic ties between the two countries.
S Paul Kapur, assistant secretary at the Bureau of South and Central Asian Affairs, said, “So we’re going to…expand. We have potential purchases of weapon systems in the pipeline that will help India to protect itself better.”
The announcement comes as India and the US finalise a framework for an interim trade deal, ending nearly a year of negotiations. The agreement brings down reciprocal tariffs from 25 per cent to 18 per cent.
Speaking at a briefing before a subcommittee in the US house of representatives, Kapur went on to say that defence cooperation is moving forward even amid previous trade uncertainties.
“We have a number of things in the pipeline and I think that momentum has continued despite… some of the uncertainties around trade and it’s going to continue now even more so because… the trade issue has been largely resolved,” he said.
The Trump admin added that the deal will help in ensuring India’s sovereignty and will also contribute to the American jobs growth. “It’ll be good for both sides,” he added.
General India’s $500 billion purchase
Under the deal new trade deal, New Delhi has committed to purchasing $500 billion in American goods over five years, covering sectors including energy products, aircraft and aircraft parts, precious metals, technology products such as graphics processing units (GPUs) for AI applications and data centres, and cooking coal.
According to the joint statement issued last week, India “intends to purchase” these goods, with the US taking the commitment “with its best endeavour to meet the obligation.”
Commerce ministry officials noted that while most of these products are already imported, current imports are valued at $300 billion annually and growing at 8 to 10 per cent each year.
They added that demand could surge to $2 trillion in the coming years, creating a “win-win situation” for both sides.
Meanwhile, US President Donald Trump has signed an executive order removing the 25 per cent penalty tariff on New Delhi, previously imposed over India’s purchase of Russian crude oil. The executive order claimed that India is “committed” to reducing its reliance on Russian oil and shifting to supplies from the US and potentially Venezuela.