India-US sign security of supply arrangement to strengthen defence ties

Washington, Aug 23: India and the United States have entered into a bilateral, non-binding Security of Supply Arrangement (SOSA) to enhance cooperation and ensure mutual access to industrial resources needed to address unexpected supply chain disruptions and meet national security requirements. This development was announced by the Pentagon in a statement.

The agreement was signed on Thursday between the US Department of Defense (DoD) and India's Ministry of Defence (MoD). Vic Ramdass, Principal Deputy Assistant Secretary of Defense for Industrial Base Policy, represented the DoD, while Samir Kumar Sinha, Additional Secretary and Director General (Acquisitions), signed on behalf of the MoD.

Under the terms of the SOSA, the United States and India have agreed to provide each other with reciprocal priority support for goods and services that are critical to national defence. "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)," stated Vic Ramdass.

The Pentagon highlighted that through the SOSA, both countries commit to fulfilling each other’s priority delivery requests for the procurement of essential national defence resources. The US has assured India of support under the US Defense Priorities and Allocations System (DPAS), with program determinations made by the DoD and rating authorisation provided by the Department of Commerce (DOC). In return, India will establish a government-industry Code of Conduct within its industrial base, where Indian companies will voluntarily commit to making every reasonable effort to provide the US with priority support.

Security of Supply Arrangements (SOSAs) are crucial for the Department of Defense (DoD) to enhance interoperability with its defence trade partners. These arrangements establish working groups, communication channels, and streamlined processes to proactively address potential supply chain disruptions during peacetime, emergencies, and armed conflicts. They also serve as a strategic tool for developing investment strategies to ensure redundancy and security in supply chains.

With this agreement, India becomes the 18th SOSA partner of the United States. Other SOSA partners include Australia, Canada, Denmark, Estonia, Finland, Israel, Italy, Japan, Latvia, Lithuania, the Netherlands, Norway, South Korea, Singapore, Spain, Sweden, and the United Kingdom.

The signing of the SOSA marks a significant step in bolstering the US-India defence partnership, particularly in the areas of technology and trade, reinforcing the long-standing cooperation between the two nations. Further details and updates on the impact of this arrangement are expected as both countries move forward with its implementation.