India and the United States have entered into a bilateral, non-binding Security of Supply Arrangement (SOSA).
Key points
- It will enable both countries to acquire the industrial resources they need from one another to resolve unanticipated supply chain disruptions to meet national security needs.
- The deal was signed Between the Indian and US Defence ministries.
- Through the SOSA, the US and India agree to provide reciprocal priority support for goods and services that promote national defence.
- This Security of Supply Arrangement represents a pivotal moment in the US-India Major Defence Partner relationship and will be a key factor in strengthening the US-India Defence Technology and Trade Initiative (DTTI).
- Through the SOSA, the US and India commit to supporting each other’s priority delivery requests for critical national defence resources.
- For the United States, this support is provided through the Defence Priorities and Allocations System (DPAS), a legally binding system that ensures the timely availability of industrial resources.
- India will establish a government-industry Code of Conduct, where Indian firms will voluntarily commit to providing priority support to the US defence needs.