US becomes India's top defence export partner, takes over 50% market share
Kolkata: American Chamber of Commerce in India (AMCHAM), an apex chamber of the US industry in India, has reported a remarkable progress in the India-US defence alliance.
It has specifically studied the US-India defence partnership emphasising the importance of cooperative efforts in determining global security and promoting wealth for both the nations.
The US-India defence partnership encompasses acquisitions, co-production and co-development for global markets, joint ventures, training and innovation, enhancing India’s defence exports. India’s defence acquisitions include a diverse range of equipment from the US.
AMCHAM India Director General and CEO Ranjana Khanna said, “US-India relationship has developed into a global strategic partnership, based on shared democratic values and increasing convergence of interests on bilateral, regional and global issues.”
She added, “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 FY 2024-25.”
Ms Khanna also observed, “It is important to note that defence exports to the U.S. accounted for over 50% of total exports, strengthening the partnership and exceeded $2.8 billion during the last 5 years.”
The AMCHAM report (US-India Defence Partnership: Co-Production & Co-Development) 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 one defence exports destination for India.
India’s defence exports were $1.6 billion (approx. ₹16,000 crore) in the financial year 2022-23 which represents over a 10x increase in the last 5 years. American companies have fostered strong partnerships with many in-country industrial entities, defence PSU’s, over 1,000+ MSMEs, academia, start-ups and incubators.
Economic growth, job creation, and innovation are natural by-products of this partnership. Innovation, skilling, and research and development enrich defence capabilities, augmenting this collaboration’s impact.
The US defence industry in India has played a key role in job creation through direct investments and by collaborating with their network of suppliers and joint venture partners and have 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.
Highlights of the US-India defence partnership as noted by AMCHAM:
The U.S. has emerged as the number one destination for India's defence exports, with exports to the U.S. accounting for over 50% of total exports, exceeding $2.8 billion in the last five years.
India's defence exports are witnessing an exponential growth, reaching $1.6 billion in the financial year 2022-23, marking a remarkable tenfold increase over the past five years.
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.
The creation of over 28,000 direct jobs and gainful employment for an additional 20,000 individuals by the U.S. defence industry in India, along with initiatives in STEM education, skilling, health, and sustainability benefiting over 2.6 million people.
