US Becomes Top Buyer of Indian Defence Equipment, Exports Exceed $2.8 Billion: AMCHAM Report

The American Chamber of Commerce in India (AMCHAM) recently released a report highlighting the significant growth and impact of the India-US defence partnership.

The report, titled "US-India Defence Partnership: Co-Production & Co-Development," reveals that the US has become the leading destination for India's defence exports, accounting for over 50% of the total and exceeding $2.8 billion in the last five years.

Key Highlights​

Export Growth: India's defence exports to the US have grown exponentially, reaching $1.6 billion in the financial year 2022-23, representing a tenfold increase over the past five years.

Job Creation: The US defence industry in India has created over 28,000 direct jobs and an additional 20,000 indirect jobs, while improving the quality of life for over 2.6 million people through initiatives in STEM education, skilling, healthcare, and sustainability.

Joint Ventures & Collaborations: Several US companies have formed strong partnerships with Indian defence entities, PSUs, MSMEs, and academic institutions. Notable collaborations include Lockheed Martin-Tata Advanced Systems, Boeing-HAL, BAE Systems-HAL, and GE-HAL, fostering technology transfer, innovation, and skill development.

Economic Impact: The partnership has not only boosted defence exports but also stimulated economic growth, job creation, and innovation in both countries.

Statements from Officials​

Ranjana Khanna, Director General and CEO of AMCHAM India, emphasized the strategic importance of the partnership, stating, "The US-India relationship has developed into a global strategic partnership, based on shared democratic values and increasing convergence of interests on bilateral, regional, and global issues."

She further highlighted the timing of the report, aligning with the recent visit of US National Security Advisor Jake Sullivan and the Indian government's ambitious target of achieving $5 billion in defence exports by FY 2024-25.

According to the Stockholm International Peace Research Institute (SIPRI) report on global arms trade, France and the US are emerging as key suppliers to India, collectively accounting for 46% of its arms imports.