India and the United States of America (USA) have signed two new defence agreements—a Security of Supply Arrangement (SOSA) and a Memorandum of Agreement regarding the Assignment of Liaison—during Defence Minister Rajnath Singh's official visit to the USA from 23 to 26 August 2024.
During his visit, he met the American Secretary of Defence, Lloyd Austin, at the Pentagon in Washington, D.C. The Pentagon is the world’s second-largest office complex and houses the United States government's defence ministry. Surat Diamond Bourse in Surat, Gujarat, is the world’s largest office complex.
He also met the United States National Security Advisor Jake Sullivan.
Before his meeting with Lloyd Austin, two agreements—a Security of Supply Arrangement (SOSA) and a Memorandum of Agreement regarding the Assignment of Liaison—were signed between the two countries to boost defence ties.
India is the 18th country with which the USA has signed the Security of Supply Arrangement. The agreement is non-binding, under which the USA can request priority delivery of defence items from Indian companies, and India can request priority delivery of defence items from American companies.
This means that during war or any other emergency situation, both countries can request arms and ammunition from each other, and the other countries will supply them on a priority basis. However, the SOSA agreement is not binding. It means that a country can refuse to supply arms and ammunition in such a situation.
The agreement is significant because it is the first step in building trust between the two countries. In the next step, both countries will sign the legally binding Reciprocal Defence Procurement Agreement (RDP).
The SOSA is expected to deepen cooperation between the defence industrial ecosystems of both countries and enhance supply chain resilience.
Under the 2023 US-India Roadmap for Defence Industrial Cooperation, both countries agreed to advance priority co-production projects, including jet engines, unmanned platforms, munitions, and ground mobility systems.
The roadmap for defence industrial cooperation envisioned the conclusion of SOSA and the RDP Agreement.
The US endorsed integrating the Indian defence industry into global supply chains and extended support to India's naval and maritime infrastructure development, which would create an Indo-Pacific regional hub for ship and aircraft repair and maintenance.