India and U.S. launch “COMPACT” initiative to strengthen defense, trade, and energy cooperation

Rate this post

India U.S. launch COMPACT

On February 13, 2025, U.S. President Donald J. Trump hosted Indian Prime Minister Narendra Modi for an Official Working Visit in Washington, D.C. This meeting marked a pivotal moment in the strengthening of the India-U.S. Comprehensive Global Strategic Partnership, reflecting mutual respect, shared values of freedom, rule of law, human rights, and pluralism, as well as deepening engagement between their citizens.

At the heart of this visit was the launch of a transformative new initiative called the “U.S.-India COMPACT (Catalyzing Opportunities for Military Partnership, Accelerated Commerce & Technology) for the 21st Century.” This initiative aims to drive change across multiple critical pillars, focusing on defense, trade, energy security, technology, innovation, and multilateral cooperation, with tangible outcomes anticipated by the end of the year. It represents a bold vision for strengthening the partnership, demonstrating trust and shared commitment to progress.

Defense Cooperation

A key aspect of this partnership is the advancement of U.S.-India defense ties, which have seen significant growth in recent years. Both leaders reaffirmed their commitment to a dynamic defense relationship, with plans to sign a new ten-year framework for the U.S.-India Major Defense Partnership by the end of 2025. This partnership will expand the scope of defense sales and co-production, integrating U.S.-origin defense items into India’s military, including aircraft, helicopters, and missiles.

Additionally, both leaders recognized the importance of expanding defense industrial cooperation, particularly in autonomous systems, with the announcement of the Autonomous Systems Industry Alliance (ASIA). This initiative will focus on advanced maritime systems and counter-Unmanned Aerial System (UAS) technology. The two countries will also elevate military cooperation across all domains—air, land, sea, space, and cyberspace—through enhanced training, exercises, and operational cooperation.

Trade and Investment

Prime Minister Modi and President Trump set an ambitious new goal for bilateral trade, launching “Mission 500” to double the trade volume to $500 billion by 2030. This goal will be supported by the negotiation of a Bilateral Trade Agreement (BTA) set to begin in fall 2025. This agreement aims to reduce barriers, increase market access, and deepen supply chain integration across sectors like goods, services, and agriculture.

Both sides have also agreed to boost investments in each other’s economies. U.S. investments in India have already been substantial, with notable contributions from companies like Hindalco, JSW, and Jubilant Pharma, contributing to local job creation and economic growth.

Energy Security

Energy security remains a cornerstone of U.S.-India relations. Both leaders underscored the importance of collaboration to ensure affordable, reliable energy access, with the U.S. positioned as a key supplier of crude oil, petroleum products, and liquefied natural gas to India. They also agreed to expand strategic petroleum reserves to safeguard against global market disruptions and affirmed the U.S.’s support for India’s membership in the International Energy Agency.

In civil nuclear cooperation, both countries are moving forward with the U.S.-India 123 Civil Nuclear Agreement. They have pledged to collaborate on building U.S.-designed nuclear reactors in India, including small modular reactors, and have agreed to work on amending key nuclear laws in India to facilitate this collaboration.

Technology and Innovation

A standout feature of the visit was the announcement of the U.S.-India TRUST (Transforming the Relationship Utilizing Strategic Technology) initiative, designed to foster cooperation on critical technologies, including AI, semiconductors, and space exploration. Both leaders committed to accelerating AI infrastructure development and promoting innovation in sectors like biotechnology and quantum computing.

As part of the TRUST initiative, the two countries will collaborate on the development of next-generation data centers, enhancing AI applications, and fostering industry partnerships. The leaders also launched INDUS Innovation, a new platform for advancing U.S.-India academic and industry collaborations in space and energy, to help both nations lead the way in innovation for the 21st century.

Multilateral Cooperation

Prime Minister Modi and President Trump agreed that the U.S.-India partnership is vital for a free, open, peaceful, and prosperous Indo-Pacific. As Quad partners, both leaders reaffirmed their commitment to ASEAN centrality, international law, and the peaceful resolution of disputes. They also emphasized the importance of cooperation on maritime patrols, humanitarian response, and strengthening security in the region.

Recognizing the strategic role both countries play in the Indian Ocean region, the leaders launched the Indian Ocean Strategic Venture, a new forum designed to advance economic connectivity and investments in the region. They also welcomed Meta’s announcement of a major undersea cable project aimed at enhancing global digital infrastructure.

Counterterrorism and People-to-People Ties

The leaders reiterated their shared commitment to combatting terrorism, calling for greater collaboration to dismantle terrorist networks like Al-Qa’ida, ISIS, and Lashkar-e-Tayyiba. They highlighted the importance of bringing perpetrators of the 26/11 Mumbai attacks and other terrorist incidents to justice, and stressed the need for Pakistan to take decisive action against cross-border terrorism.

In terms of people-to-people relations, both leaders acknowledged the immense contributions of the Indian diaspora, particularly the over 300,000 Indian students in the U.S. who contribute significantly to the U.S. economy. They also pledged to improve mobility frameworks for students, professionals, and tourists while addressing illegal immigration and human trafficking. The leaders also committed to strengthening law enforcement cooperation to counter illegal immigration networks and organized crime.

Conclusion

The India-U.S. Joint Statement reflects a robust and forward-looking partnership, with a shared vision for a future characterized by greater security, prosperity, and cooperation. Both President Trump and Prime Minister Modi emphasized their commitment to ensuring the long-term success of this partnership, with a strong focus on addressing global challenges, fostering innovation, and promoting peace and stability in the Indo-Pacific and beyond. The initiatives launched during this visit set the stage for a new chapter in U.S.-India relations, one that will have a lasting impact on the global landscape in the years to come.

(Source: PIB)

Sharing Is Caring:

Tai writes and shares the latest news in a clear and accurate way, keeping readers up to date with current events.