Scale And Innovation Are Driving Defence Ties
By focusing on joint competencies, the US and India can achieve greater technological and military edge for themselves, and the wider Indo-Pacific. While thinking within the US Department of Defence (DoD) about acquisitions and industry-led innovations has evolved, India’s private defence sector is finally taking off
The United States (US) and India are embarking on a new defence technology journey focused on dual-use innovations that are private-sector-led and commercially scalable. Combining concerns of the war fighter, technological innovations, and commercially scalable technologies is not easy. But in defence, that sweet spot is where moon shots occur. By focusing on joint competencies, the US and India can achieve greater technological and military edge for themselves, and the wider Indo-Pacific.
Exciting changes are occurring in the defence ecosystem. While thinking within the US Department of Defence (DoD) about acquisitions and industry-led innovations has evolved, India’s private defence sector is finally taking off. As the two nations battle a common challenge, combining technological advantages is slowly becoming a necessity. Partnering with Indian defence firms on dual-use and commercially scalable technologies can provide reliable and diversified components suppliers, and access to high-skilled human capital while being considerably cost-efficient for US firms, and ultimately DoD. Similarly, partnering with US firms can provide India access to technologies, commercial interest and investments, and employment for its young. For both the US and India, such collaboration will open new markets. The strategic advantage of combining forces by focusing on strengths is immense. A strong India is in the US national interest as it means better capability against a common challenge – China. India not only has the geographical reach but also active experience in defending against Chinese forces and systems.
Growing linkages between our two defence ecosystems and cost-efficient platforms will also accelerate India’s weaning away from Russian platform systems. Not to forget that dual-use technology collaboration that is private-sector led also comes with less regulatory and bureaucratic baggage. The easing of export controls for India, the upward trajectory of the Indo-US relationship, and Delhi’s growing defence technology startup ecosystem is slowly creating a runway for such collaboration. And today, such an impetus can likely come from the defence innovation bridge under the Initiative for Critical and Emerging Technologies (iCET) where an attempt is being made to enmesh the private sector defence ecosystems of our two countries. During US secretary of defence Lloyd Austin’s recent visit, the US and India initiated negotiations on a security supply chain agreement, reciprocal defence procurement (RDP) agreement, and established a road map for defence industrial cooperation. Under iCET, discussions are also gaining momentum on ironing out many existing export control and regulatory issues. Presently, Indian firms cannot supply to DoD under traditional acquisition methods. With an RDP, that can change, though India will also have to provide some reciprocal defence procurement preferences.
But besides long-term government negotiations, the defence innovation bridge also has an immediate deliverable through the INDUS-X conference, a joint defence innovation led by DoD and India’s Innovation for Defence Excellence Initiative, or iDEX, at the ministry of defence. The initial kick-off event in Washington DC on June 20 and 21 will bring together startups, innovators, investors, and academia of the two countries to start thinking about activating this innovation bridge. Some initiatives will include joint challenges, a joint innovation fund, and pathways for mentor protégé ties such as commercial relations between US primes and Indian start-ups.
This new partnership is strikingly different from the Indo-Russian top-down military-industrial complex. Through the defence innovation bridge, the two countries are making a serious attempt to de-centralise innovation. The task at hand is not easy and requires champions on both sides and a serious commitment to work together. But the two democracies have been here before. They have navigated the nuclear deal, initiated modest export control reviews under the high technology cooperation group, and tried co-production under the defence trade and technology initiative. Today, strategic and commercial levers are pulling the two nations together. Strategically, there is the common challenge. Commercially, if the US has technological innovation like no other, India has the ability to scale, and a market to absorb that innovation.
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