US-Bharat COMPACT: Forging a New Era in Defense Collaboration

Paromita Das

New Delhi.

In a landmark development, Bharatiya Prime Minister Narendra Modi and U.S. President Donald Trump have unveiled the U.S.-Bharat COMPACT (Catalyzing Opportunities for Military Partnership, Accelerated Commerce & Technology) initiative. This groundbreaking agreement aims to redefine defense collaboration between the two nations, focusing on technology transfers, co-production ventures, and strategic alignment in defense and security sectors.

Strengthening Defense Ties

The COMPACT initiative introduces a comprehensive 10-year defense framework, emphasizing joint development and production of advanced defense systems. Notably, Bharat is set to procure and locally manufacture cutting-edge equipment, including the Javelin anti-tank guided missiles and Stryker infantry combat vehicles. The Javelin system, renowned for its fire-and-forget capability and high-explosive anti-tank warhead, has demonstrated exceptional performance in various combat scenarios, including the Iraq war and the ongoing Ukraine-Russia conflict. The Stryker, an eight-wheeled armored vehicle, offers versatility with its Infantry Carrier Vehicle and Mobile Gun System variants, providing robust armor protection and speeds up to 60 miles per hour.

Advancements in Aerial Combat

A significant aspect of the agreement is the U.S. commitment to reviewing its policy on supplying fifth-generation fighters to Bharat, notably the F-35 Lightning II. This single-seat, single-engine, supersonic stealth fighter is designed for both air superiority and strike missions, encompassing electronic warfare, intelligence, surveillance, and reconnaissance capabilities. While the F-35 is acclaimed as one of the most advanced stealth fighters globally, discussions are also underway for Bharat’s potential involvement in the Next Generation Air Dominance (NGAD) program. This U.S. Air Force initiative aims to develop sixth-generation fighter jets, signaling a forward-looking approach to aerial combat collaboration.

Maritime and Autonomous Systems Collaboration

The partnership extends to maritime defense, with Bharat set to acquire six additional P-8I Poseidon aircraft. These state-of-the-art maritime patrol aircraft have already proven invaluable in the Indian Navy’s operations. Furthermore, the agreement encompasses collaborations on unmanned surface vehicles (USVs) and autonomous underwater vehicles (AUVs), enhancing underwater domain awareness and maritime security.

Industrial Cooperation and Technology Transfer

Beyond procurement, the COMPACT initiative emphasizes joint production of defense equipment in Bharat. The formation of the Autonomous Systems Industry Alliance (ASIA) will facilitate collaboration between U.S. companies—such as ThayerMahan, L3Harris, and Anduril—and Bharatiya firms like Mahindra, Bharat Electronics, and Bharat Dynamics. This alliance focuses on co-developing and co-producing maritime drones and counter-drone systems, bolstering indigenous defense manufacturing capabilities.

A pivotal component of the agreement is the review of the International Traffic in Arms Regulations (ITAR), which have historically impeded Bharat’s access to critical U.S. military technology. A streamlined ITAR process promises more efficient technology transfers, timely supply of spare parts, and improved maintenance protocols for U.S.-origin equipment in Bharat.

Comprehensive Defense Cooperation

The COMPACT initiative adopts a holistic approach to modern warfare, encompassing collaborations in space defense, missile defense, and cyber technologies. A notable outcome of the recent discussions is the initiation of negotiations for a Reciprocal Defense Procurement (RDP) agreement. This accord aims to harmonize defense procurement systems, facilitating the mutual supply of defense goods and services.

The RDP seeks to streamline procurement processes, reduce bureaucratic obstacles, and enhance efficiency in defense trade. It also aims to facilitate the transfer of advanced technologies, enabling Bharat to locally produce and maintain U.S.-supplied defense systems. For the U.S., this agreement offers access to cost-effective components from Bharat’s burgeoning defense manufacturing sector.

Economic Implications and Future Outlook

The U.S. has emerged as a significant buyer of Bharatiya defense products, accounting for nearly 50% of Bharat’s total defense exports. American imports primarily include aircraft and helicopter parts manufactured by Bharatiya firms for global defense majors like Lockheed Martin and Boeing. For instance, Tata Boeing Aerospace Ltd (TBAL) in Hyderabad has supplied over 200 Apache fuselages and other aircraft components, while Lockheed Martin’s partnership with Tata Advanced Systems Limited (TASL) has resulted in the production of more than 200 empennages for the C-130J transport aircraft and over 157 cabins for the S-92 helicopter.

These collaborations have contributed to a remarkable surge in Bharat’s defense exports, which soared from $110 million in 2013-14 to over $2.5 billion in 2023-24. This growth aligns with the Modi government’s initiatives, such as “Make in India” and “Atmanirbhar Bharat,” aimed at promoting defense manufacturing and exports. The introduction of the Defence Production and Export Promotion Policy (DPEPP) 2020 and the Strategic Partnership Model has further simplified procurement processes and encouraged private sector participation.

Prime Minister Modi has set an ambitious target of achieving $5 billion in defense exports by 2025, driven by a projected $25 billion turnover in defense manufacturing. The recent surge in exports indicates that Bharat is well on its way to meeting this goal.

Conclusion

The U.S.-Bharat COMPACT initiative signifies a transformative shift in bilateral defense relations, moving beyond traditional buyer-seller dynamics to a partnership rooted in co-development, technology sharing, and strategic alignment. As both nations navigate the complexities of global security challenges, this collaboration not only enhances their defense capabilities but also contributes to regional and global stability. The successful implementation of this initiative will depend on sustained political will, effective execution of agreements, and the fostering of mutual trust and understanding between the two democracies.