The United States Consul General in Mumbai has stated that India would not be forced to purchase F-16 fighter aircraft from the U.S in order to avoid American sanctions. India has been concerned about being subjected to sanctions under the CAATSA ever since signing a multi billion dollar defence..
The United States Consul General in Mumbai has stated that India would not be forced to purchase F-16 fighter aircraft from the U.S in order to avoid American sanctions. India has been concerned about being subjected to sanctions under the CAATSA ever since signing a multi-billion dollar defence deal with Russia on 5 October. The U.S has been keen to increase Defence exports to India.
Background
Prominent leaders of India’s freedom movement had friendly relations with the United States of America which continued well after independence from Great Britain in 1947. In 1954, the United States of America made Pakistan a Central Treaty Organisation treaty-ally. India on its part cultivated strategic and military relations with the Soviet Union to counter Pakistan–United States relations.
In 1961, India adopted the policy of non-alignment. The principles of nonalignment, as articulated by India’s first prime minister Nehru and his successors, were the preservation of India’s freedom of action through refusal to align India with any bloc or alliance, particularly those led by the United States or the Soviet Union.
Increase in bilateral trade and investment, cooperation on global security matters and the inclusion of India in decision-making on matters of global governance have significantly advanced relations between the United States and India, with the two nations leaders speaking in favour of a trade deal. In 2016, India was declared a Major Defence Partner of the United States.
India recently concluded a USD 5 billion deal to buy the S-400 air defence missile system from Russia which could attract US sanctions under the Countering America’s Adversaries Through Sanctions Act (CAATSA) instituted by the US Congress on arms purchases from Moscow. The United States’ response to the deal has been guarded: at the 2+2 Dialogue in New Delhi in September, U.S. Defence Secretary James Mattis emphasised that the sanctions aren’t intended to adversely impact countries like India, saying “They are intended to have an impact on the sanctioned country.”
Analysis
United States Consul General in Mumbai Edgard Kagan said that there would be no pressure on India to purchase F-16 fighters from the United States in order to avoid American sanctions under the CAATSA. He said that India has purchased more than USD 15 billion worth of American defence materials and the US is “very proud” of the expanding defence ties between the two countries.
Asked if there was a threat of the US imposing trade sanctions on India after its multi-billion deal with Russia for the S-400 air-defence system, he did not give a direct answer. Kagan said the US is “very proud” of the expanding defence partnership with India. “The fact is that India has purchased over USD 15 billion worth of American defence materials and there hasn’t been one hint of a scandal. There hasn’t been one suggestion of any impropriety and that’s very significant. The American defence procurement are transparent… All details are published on the US site,” he said. This gives certainty to the people buying American products, the US consul general said.
The consul general was possibly referring to the scandals caused by India’s purchase of 36 Rafale fighters from French Company Dassault. India’s ruling party, the BJP, has come under fire recently for purchasing the fighters at an allegedly inflated price. The opposition argues that the Indian government allowed their chosen partner to benefit from the offsets clause in the deal at the expense of more established State-owned aerospace companies, a claim supported by a recent document leak from Dassault. The opposition also alleges that the standard defence procurement procedure was neglected in the deal.
“When you compare the track record of the C-17 purchases for instance, or C-130 purchases, (both are US-made cargo aircraft) which were all done on budget, on time and in a very transparent way without a single hint of impropriety with many other defence procurement, the difference is quite striking,” Kegan said.
Assessment
Our assessment is that the United States would prefer to retain their access to the Indian defence market, rather than sabotage potential arms purchases by sanctioning India. India is currently looking to expand its air force by 42 squadrons, and the American envoy’s comments in regard to the propriety with which American defence deals have been done in India are strong indicators of the United States hopes of more such purchases in the future.
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