Explained: What is INDUS-X initiative between India and US? How will it boost India's defence production?

Explained: What is INDUS-X initiative between India and US? How will it boost India's defence production?

INDUS-X, an initiative poised to boost India's defence manufacturing sector

US Defense Secretary Lloyd J. Austin was in New Delhi on a crucial visit aimed at strengthening the bilateral defence cooperation between the United States and India. As part of his visit, Austin was accorded a guard of honour at the Manekshaw Centre earlier today, emphasising the significance of the discussions that followed. The visit of the US defence secretary comes ahead of the scheduled state visit of Indian Prime Minister Narendra Modi to Washington later this month.

The Ministry of Defence confirmed that Defence Minister Rajnath Singh and Austin engaged in extensive discussions regarding a wide range of defence cooperation issues. The talks primarily focused on identifying opportunities to enhance industrial cooperation between the two nations. The leaders expressed their commitment to bolstering the strategic partnership and explored avenues for collaboration in various domains. The leaders announced the launch of a new defence initiative between the two nationscalled INDUS-X

What is INDUS-X?

INDUS-X stands for enhanced strategic and defence partnership between India and the US. It is aimed at deepening the partnership between the US and Indian defence innovation sectors. INDUS-X will focus on advancing high-tech cooperation and fostering joint research, development, and production opportunities in the defence sector. The initiative aims to explore possibilities for co-producing jet engines, long-range artillery, and infantry vehicles. Secretary Austin highlighted the importance of this initiative and announced that its formal launch would be undertaken during Prime Minister Modi's state visit to Washington.

Llyod in a statement said, "We are not only sharing technology, but we are also cooperating alongside each other more than ever before."

Furthermore, shedding light on the initiative, the US Department of Defense in a statement said, “This initiative aims to change the paradigm for co-operation between the US and Indian defence sectors, including a set of specific proposals that could provide India access to cutting-edge technologies and support India’s defence modernisation plans.”

It must be noted that initial discussions regarding the launch of the INDUS-X initiative surfaced in June 2021. This was an initiative of the US-India Business Council launched, which aimed at advancing cutting-edge technology cooperation.

India's Modi on first state visit to the US

The upcoming state visit of Prime Minister Narendra Modi to the United States on June 22 further solidifies the deepening relationship between the two nations. President Joe Biden and First Lady Jill Biden extended the invitation, emphasising the growing importance of the strategic partnership between India and the United States. During the visit, the leaders will have the opportunity to review and strengthen bilateral cooperation in various fields, including technology, trade, industry, and people-to-people connections.

This state visit also serves as a significant indication of the Biden administration's commitment to advancing policies and initiatives that promote a free and open Indo-Pacific region. Recognising the shared objective of countering China's expanding influence, the United States and India are aligning their efforts to foster a robust and cooperative relationship.

USA's efforts to wean India off security dependence on Russia

In order to pull India away from its security dependence on Russia, the US administration has been eagerly upgrading its defence ties with New Delhi. Russia continues to be India's biggest arms supplier, which is a major concern for the US government. However, Russia's share in India's arms market has dropped significantly from a whopping 62 per cent in 2017 to a mere 45 per cent in 2022. The US is India's third-largest arms supplier with an 11 per cent share, below France's 29 per cent.

Watch:Chinese aggression crucial part of US-India Defence Chief talks

INDUS-X will now further help India diversify its defence portfolio, which will also give a boost to the Make-in-Indiacampaign. India under Narendra Modi is making efforts to reduce its reliance on defence exports and instead boost the local manufacturing sector.

Big boost to India's defence sector

The Modi government has placed special emphasis on increasing defence exports, especially during the second term. As a result of the continued efforts, India registered historic growth in defence exports in the financial year ending March 2023. India's total defence exports in the last financial year were pegged at $1.95 billion, a record.

India has been exporting a range of defence equipment, including helicopters, naval vessels, aircraft, missiles, and armoured vehicles, among others. The government has set a target of achieving $5 billion in defence exports by 2025.

Hence, with India and US coming together under the INDUS-X initiative, India will be in a better position to achieve the $5 billion target in the upcoming two years. This will pave the way for US companies to invest massively in India and build a defence ecosystem. India has already undertaken such a defence partnership with Russia.

For instance, the BrahMos joint venture, which saw India and Russia co-produce medium-range Ramjet Supersonic BrahMos Cruise Missile that can be launched from submarines, ships, airplanes or land. Now, India will look forward to replicating the success of the BrahMos model, this time in partnership with the US.

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