Obama to push for more defence deals with India in 2nd term

India on Wednesday congratulated Barack Obama for winning a second term in the White House hoping the economic and defence ties between the two countries will be furthered.

Obama has been instrumental in pushing through defence deals worth $10 billion with India in his first term creating thousands of jobs back home. Many of the defence deals with the US are still in offing.

Prime Minister Manmohan Singh also congratulated Obama – with whom he shares a special equation -for his re-election. “I have no doubt that there is much more we can do together to further strengthen the India-U.S. partnership and thereby advance peace and stability, expand mutual economic opportunities, harness the potential of science and technology, innovation and higher education and empower our people to address global challenges,” Singh said in his congratulatory message. 

Obama has also been pushing for better relations with India as was evident during his four day presidential tour – the longest overseas visit by him as President. Obama, who broke the racial ceiling for being the first Black elected President in the White House, also expressed his solidarity with India in countering terrorism.

As per keen watchers of the defence industry, there will be “renewed thrust” from Obama on signing of more defence deals with India to help the economic crises back home. The total defence trade between the two countries in last 10 years has been $ 10 billion and in 2011 only India has purchased military equipments worth more than $4.5 billion from the US. The big ticket deals signed with the US in the last five years been eight P-8I maritime surveillance and anti-submarine warfare aircraft from Boeing valuing $ 2.1 billion. India is also buying 10 C-17 heavy-lifters from Boeing for $4.1 billion. The six C-130 J special operations aircraft valuing $ 1.2 billion have already arrived in the country and order for six more is in the offing. India is also planning to place an order for M777 ultra light howitzers for $ 700 million to augment its firepower in the mountainous terrain.

The US firms have also emerged as the chosen one for supplying the attack helicopters and the heavy lift helicopters for the Indian Air Force.

In a gesture to reciprocate, the US also eased its US Export Controls and Technology security policies towards India and removed premier Defence Research and Development Organisation and Indian Space Research Organisation (ISRO) from the Commerce Department Entity List.

The US earlier this year unveiled a new military strategy for Asia-Pacific under the leadership of Obama giving a more pivotal role to India to counter the rise of China. The US has been all out trying to woo India by stepping up bilateral defence trade and cooperation. The US also underlined its commitment towards the modernization of the Indian Army.

With the US set to pull out its troops from strife-torn Afghanistan by 2014 end, it has been urging India to play a greater role in stabilizing the country. So far India’s involvement in Afghanistan has been limited to economic and soft skills development. The US is keen on New Delhi’s help in training Afghanistan police and Army.