India and US sign defence accord

India and US have signed a 10-year agreement to strengthen defence ties between the two countries.
The landmark agreement will help facilitate joint weapons production, co-operation on missile defence and the transfer of technology.

Indian Defence Minister Pranab Mukherjee and US Defence Secretary Donald Rumsfeld signed the agreement.

There has been a significant transformation in relations between the two countries in recent years.

The agreement was signed during Mr Mukherjee's visit to the US - his first since assuming his post last year.

The United States and India have entered a new era

Statement on the agreement
"The United States and India have entered a new era," a statement issued after the signing of the agreement in Washington said.

"We are transforming our relationship to reflect our common principles and shared national interests."

According to AFP news agency, the statement said the ministers agreed to set up a "defence procurement and production 'group' to oversee defence trade, as well as prospects for co-production and technology collaboration".

Biggest partner

"Today, we agree on a new framework that builds on past successes, seizes new opportunities and charts a course for the US-India defence relationship for the next 10 years," the statement said.

Mr Singh is due to hold talks with President Bush in July
The statement said that the two nations had advanced to "unprecedented levels of cooperation".

The defence pact came ahead of a three-day visit by Indian Prime Minister Manmohan Singh to the US in July.

In a speech in Washington on Tuesday, Mr Mukherjee urged the US to lift curbs on nuclear technology transfers to India.

The US imposed the restrictions in the wake of India's nuclear tests in 1998.

Economic ties have grown between the two countries, once on opposite sides of the Cold War fence, and the US is now India's biggest trading partner.

The two countries have also overseen increased military ties, holding joint exercises and expanded civilian, space and hi-tech contacts.

WASHINGTON: Given the geo-political environment and its proven track record, India "should justifiably be allowed to access all the technologies and defence equipment that it needs. There should at least be no moral inhibition on this account," Defence Minister Pranab Mukherjee said. "However I do realise that we live in a real world of practical people who have to take into consideration factors of realpolitik," he said at a meeting with the U.S.-India Business Council here.

Stressing that there were "great opportunities" for business in India's defence sector, Mr. Mukherjee called for this business in defence to be viewed in a broader perspective. "Security and defence are quintessentially sovereign functions. They are inextricably linked with politics and foreign policy," the Minister said, pointing out that the overall security scenario must form the backdrop of the cooperation between India and the United States.

On commercial opportunities for American industry in the sale of equipment and weapons Mr. Mukherjee noted that India did not look purely at a "buyer-seller" relationship; rather the relationship had to be strategic and New Delhi was looking for a "long-term" commitment. Substantial commercial opportunities would come from transfer of technology, co-development, co-production, mutual outsourcing and joint marketing.

Although the two countries were close in terms of shared values "we have yet to develop a substantial partnership in the defence industrial sector, Mr. Mukherjee said.

"If as many experts assert, India and the U.S. are natural allies then the question that arises is why has this alliance not materialised in concrete terms? Although there have been some recent positive developments, there is nevertheless enormous potential for further progress in this regard."

Pointing to India's vast industrial infrastructure, particularly in the defence sector, Mr. Mukherjee said India could be an excellent base for the U.S. defence industry in a number of areas such as repair, overhaul, maintenance and servicing and, as a centre for regional distribution and services.

"With the opening up of the aviation sector in India a large number of aircraft are being acquired. This would provide an excellent opportunity for leading U.S. companies to enter into partnerships with established Indian companies for repair, overhaul, maintenance and other services.

"Great opportunities for a long-term mutually beneficial partnership between the defence industries of the United States and India exist. We need to, in a purposeful and progressive manner, remove impediments coming in the way of our natural alliance and join hands to make this world a more secure, peaceful and prosperous place," the Defence Minister said.


The agreement, signed here by Defence Minister Pranab Mukherjee and American Defence Secretary Donald Rumsfeld, defined the goals as strengthening "our countries' security, reinforce our strategic partnership, and build greater understanding between our defence establishments."

"Both sides agreed that US-India defence relations are an important pillar of their transforming bilateral relationship," a statement said.

The framework stated that both India and the US were entering a new era, "transforming our relationships to reflect our common principles and shared national interests".

It said the defence relationship would support, and would be part of the broader US-India strategic partnership. It acknowledged that defence between the two nations had advanced to "unprecedented levels of cooperation unimaginable" since 1995, when both countries had signed the 'Agreed Minute on Defence Relations'.

The two sides also agreed to expand collaboration on missile defence.

According to the framework, the defence establishments of the two nations would conduct joint and combined exercises and exchanges, collaborate in multinational operations when it is in their common interest, and strengthen the capabilities of militaries to promote security.

It added that the two sides will expand interaction with other nations in ways that promote regional and global peace and stability, and enhance capabilities to combat the proliferation of weapons of mass destruction.


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