India lining up defence deals worth $10 billion with US amid trade row

5 min read
  1. India is lining up defence deals worth around $10 billion with the US over the next two-three years despite ongoing trade disputes and immigration concern.
  2. The latest deal being finalised by India under the foreign military sales programme of the US is for the acquisition of 10 more Poseidon-8I long-range maritime patrol aircraft for over $3 billion.
  3. The Navy has already inducted the (a)first eight Boeing-manufactured P-8Is which are packed with sensors and armed with Harpoon Block-II missiles (b)MK-54 lightweight torpedoes and (c)rockets and depth charges to detect and destroy enemy submarines in January 2009.
  4. The other deals in the pipeline include (a)24 naval multi-role MH-60 ‘Romeo’ helicopters (b)the National Advanced Surface to Air Missile System-II for the missile shield over Delhi and (c)six more Apache attack helicopters.
  5. Further,the US administration has expressed its opposition to India’s inking of the S-400 Triumf missile systems deal with Russia which was followed by another deal for lease of a Akula-1 nuclear powered attack submarine in March 2019.
  6. India has also resumed some payments to Russia for defence contracts inked earlier through a new mechanism that uses a mix of foreign currency and a Rupee-Rouble transfer system.
  7. Indian banks with exposure to the US had earlier suspended payments and instalments to Russia to avoid the threat of punitive sanctions under Countering America’s Adversaries through Sanctions Act (CAATSA).

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