India Makes it Easier to Import US Defense Goods

India on Friday took another step towards stronger relations with America.

Outlining her 2019-2020 budget, Indian financial minister Nirmala Sitharaman ended customs duties against defense imports. That means U.S. and other defense exporters are now more competitive in offering goods to India’s military. Sitharaman made clear her decision isn’t flippant: “Defense has an immediate requirement of modernization … This is a national priority.”

India recognizes Chinese efforts to control the Indian Ocean. Sustaining Chinese deference to Pakistan goes hand-in-hand with Beijing’s use of that nation for its own power-projection interests. China’s deep-water port at Pakistan’s Gwadar port stands out here.

But New Delhi knows that as China builds up its navy, it will deploy increasingly advanced warships close to Indian waters. China’s intention here will be to strangle the Indian trade economy in the event of future conflict.

And that makes Sitharaman’s decision good news for U.S. defense firms that tender in maritime security and combat command networks.

In turn, U.S. defense exporters should look to get in on what is now a more open-for-business Indian import market. Submarine-hunting aircraft, advanced radar tracking, and hardened computing networks stand out as particular areas of U.S. advantage over other export nations.

But the U.S. can’t take the new opportunity for granted. Russia has successfully ingratiated itself with the Indian defense community. And if Congress doesn’t make it easier to export more defense platforms more quickly, Russia and exporters like France will fill our lost opportunity gaps.

There’s little reason to hesitate. The Trump administration has worked diligently to consolidate U.S. ties with the world’s most populous democracy. India’s new tax break for U.S. exporters is a de facto olive branch. U.S. business interests and U.S. strategy suggest we grasp it.

Source: WE

Image Courtesy:Reuters