In a landmark deal, the US Department of Defense (DoD) and the Ministry of Defence of the Government of India (MoD) entered into a bilateral, non-binding Security of Supply Arrangement (SOSA) on 22 August during Defence Minister Rajnath Singh’s US visit. The SOSA was signed by Dr. Vic Ramdass, Principal Deputy Assistant Secretary of Defense for Industrial Base Policy, on behalf of the United States, and Samir Kumar Sinha, Additional Secretary and Director General (Acquisitions), on behalf of the MoD for strategic resources. Boosting the bilateral defence relations, this transformational deal will allow DoD to move Indian orders for the front-of-the-line US equipment.
Another agreement regarding the Assignment of Liaison Officers was also signed. The deal was signed by Joint Secretary International Cooperation, Ministry of Defence Vishwesh Negi and Assistant Secretary of State for Defence for Indo-Pacific Security Affairs Dr Ely Ratner.
Defence Minister Rajnath Singh, through a post on X, said two important documents have been signed in Washington DC as Defence Minister Rajnath Singh’s visit to the United States begins. Senior defence officials from both sides concluded the Security of Supplies Arrangement (SOSA) and Memorandum of Agreement regarding the Assignment of Liaison Officers.
Two important documents have been signed in Washington DC as Raksha Mantri Shri @rajnathsingh’s visit to the United States begins.
Senior defence officials from both the sides concluded the Security of Supplies Arrangement (SOSA), and Memorandum of Agreement regarding the… pic.twitter.com/FsxZaLW1fe
— रक्षा मंत्री कार्यालय/ RMO India (@DefenceMinIndia) August 23, 2024
Through this SOSA, the United States and India agree to provide reciprocal priority support for goods and services that promote national defence. The arrangement will enable both countries to acquire the industrial resources they need from one another to resolve unanticipated supply chain disruptions and meet national security needs, the US Department of Defense (DoD) said in its statement.
“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),” said Dr. Ramdass. “I look forward to OUSD(A&S) hosting the next DTTI meeting this fall to deepen cooperation between our respective defense industrial bases and pursue bilateral co-development, co-production, and co-sustainment initiatives.”
This deal is beneficial during crises when a country has urgent needs, but American vendors struggle to prioritize among their customers. The agreement would now promote long-term supply chain stability.
“In the Arrangement, the U.S. and India commit to supporting one another’s priority delivery requests to procure critical national defence resources. The U.S. will provide India assurances under the U.S. Defense Priorities and Allocations System (DPAS), with program determinations by DoD and rating authorization by the Department of Commerce (DOC). India will, in turn, establish a government-industry Code of Conduct with its industrial base, where Indian firms will voluntarily agree to make every reasonable effort to provide the U.S. priority support,” statement reads.
The Department of Defense (DOD) statement emphasizes that as the global supply chain for DOD expands, Special Security Agreements (SOSAs) play a crucial role in strengthening interoperability with U.S. defence trade partners. These agreements establish working groups, communication mechanisms, and streamlined processes within the DOD to address supply chain issues in peacetime, emergencies, and armed conflicts. They also serve as a tool for developing investment strategies to ensure redundancy and security. India is the eighteenth SOSA partner of the U.S., and other partners include Australia, Canada, Denmark, Estonia, Finland, Israel, Italy, Japan, Latvia, Lithuania, the Netherlands, Norway, the Republic of Korea, Singapore, Spain, Sweden, and the United Kingdom.
India and the US have been in talks over this agreement, which was announced during Defence Secretary Lloyd Austin’s trip to India last year as part of a new roadmap for US-India Defence Industrial Cooperation.
SOSAs enable the Department of Defense (DoD) to request priority delivery for DoD contracts, subcontracts, or orders from companies in the country with whom the agreement is signed. Similarly, signatory nations can request priority delivery for their contracts and orders with US firms, thereby ensuring rapid access to critical supplies, minerals, and technologies.
According to sources from the Ministry of Defence (MoD), SOSA is a commitment to fairness that allows both sides more rapid access to critical supplies, minerals, and technologies when needed. They emphasized that this commitment ensures there is no discrimination against the supplier of the other country for agreed-upon items, promoting a level playing field for all involved.
Defence Minister Rajnath Singh is currently on an official visit to the US from August 23 to 26. This visit was made at the invitation of US Secretary of Defence Lloyd Austin. He arrived in Washington, DC, on Thursday. During the visit, Singh will hold a bilateral meeting with his US counterpart, Secretary Austin, at the Pentagon and with Jake Sullivan, the US National Security Advisor.
Ravi Shankar
