India and the United States have taken a significant step in bolstering their defense partnership by signing a bilateral Security of Supply Arrangement (SOSA).
This non-binding agreement aims to ensure that both nations can rely on each other for critical industrial resources, especially in the face of unexpected supply chain disruptions that could impact national security.
The Pentagon announced that officials signed the agreement on Thursday.
Vic Ramdass, Principal Deputy Assistant Secretary of Defense for Industrial Base Policy, and Samir Kumar Sinha, Additional Secretary and Director General (Acquisitions) for India’s Ministry of Defence, signed the SOSA.
This arrangement is likely to provide reciprocal priority support for essential goods and services that contribute to the national defense of both countries.
The Pentagon emphasized the importance of this agreement, noting that it marks a significant milestone in the US-India Major Defense Partnership and will play a crucial role in enhancing the Defense Technology and Trade Initiative (DTTI) between the two nations.
“This Security of Supply Arrangement represents a pivotal moment in the US-India Major Defense Partner relationship and will be a key factor in strengthening the US-India Defense Technology and Trade Initiative (DTTI),” said Vic Ramdass.
India, US Commit To Prioritizing Critical Defense Needs In Security Of Supply Arrangement (SOSA)
Under the terms of the SOSA, the US and India however have committed to prioritizing each other’s critical defense procurement requests.
The US will extend its support to India through the Defense Priorities and Allocations System (DPAS), with determinations made by the DoD and authorizations granted by the Department of Commerce (DOC).
On the other hand, India will establish a government-industry Code of Conduct, encouraging its industrial base to make every reasonable effort to provide priority support to the US when needed.
These arrangements are vital for enhancing interoperability between the US and its defense trade partners.
SOSAs are instrumental in establishing working groups, creating communication channels, streamlining processes within the DoD, and proactively addressing potential supply chain issues during peacetime, emergencies, and armed conflicts.
Moreover, these agreements contribute to the development of investment strategies aimed at ensuring redundancy and supply chain security.
With the signing of this SOSA, India becomes the 18th country to enter into such an arrangement with the US.
Other nations that have partnered with the US under similar agreements include Australia, Canada, Denmark, Estonia, Finland, Israel, Italy, Japan, Latvia, Lithuania, the Netherlands, Norway, South Korea, Singapore, Spain, Sweden, and the United Kingdom.
This agreement not only solidifies the defense cooperation between India and the US but also reinforces their shared commitment to maintaining a secure and resilient supply chain in the face of global challenges.
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