The U.S. State Department has approved the sale of Javelin anti-tank missile systems and Excalibur guided artillery munitions worth $93 million to India, the U.S. Defence Security Cooperation Agency (DSCA) said on Wednesday.
"This proposed sale will support the foreign policy and national security objectives of the United States by helping to strengthen the U.S.-Indian strategic relationship and to improve the security of a major defence partner which continues to be an important force for political stability, peace, and economic progress in the Indo-Pacific and South Asia regions," the DSCA said in a statement. It has delivered the required certification notifying Congress about the sales.
The deal is noteworthy since it is New Delhi’s first under Washington's foreign military sales programme since ties soured in August after President Donald Trump doubled tariffs on Indian goods to 50%. The two countries are negotiating a bilateral trade agreement to boost two-way commerce. The Indian team is in Washington for the trade talks.
India-US defence deal back on track?
The Government of India wishes to buy up to 216 M982A1 Excalibur tactical projectiles, DSCA said. Non-MDE (Major Defence Equipment) items that will also be included in the sale are ancillary items; Portable Electronic Fire Control Systems (PEFCS) with Improved Platform Integration Kit (iPIK); primers; propellant charges; US Government technical assistance; technical data; repair and return services; and other related elements of logistics and programme support, it added.
On the sale of Excalibur projectiles, the agency said: "The proposed sale will improve India's capability to meet current and future threats by providing precision capability equipment, which will increase first strike accuracy in its brigades."
The Indian Government has requested to buy 100 FGM-148 Javelin rounds; one Javelin FGM-148 missile, fly-to-buy; and 25 Javelin Lightweight Command Launch Units (LwCLU) or Javelin Block 1 Command Launch Units (CLU), it said and listed a range of non-MDE items including missile simulation rounds; battery coolant unit; interactive electronic technical manual; and Javelin operator manuals apart from refurbishment services and other related elements of logistics and programme support.
The deal follows a re-order this month of fighter jet engines made by General Electric to power more of India's home-produced Tejas combat aircraft.
US tariffs and trade tensions
The announcement comes only days after reports claimed that India's merchandise exports to the US declined for the second consecutive month in October, falling by 8.58 per cent to USD 6.3 billion due to the hefty 50 per cent tariffs imposed by Washington.
During the April-October period of this fiscal, the country's exports to the US increased by 10.15 per cent to USD 52.11 billion, while imports rose 9.73 per cent to USD 30 billion, the data showed.
However, a White House Executive Order issued on November 12 excludes coffee, tea, tropical fruits, fruit juices, cocoa, spices, bananas, oranges, tomatoes, beef and certain fertilisers from the April 2 reciprocal tariff regime. The exemptions took effect on November 13.
ALSO READ:
- Naval defence capabilities of Bangladesh set for massive upgrade as key MoU signed with Netherlands
- Indian Navy’s underwater capabilities to become sharper and more efficient with commissioning of DSC A20
- Why is the US helping to upgrade Pakistan's F-16 fighter jets? Will this change military balance in the region?
- ALH Dhruv fleet of Indian Navy, Coast Guard set for a crucial tech fix before flying again
On Monday, India braced itself as US President Trump threw in his weight behind a Republican bill in the US Senate that would, if passed, legally clear the way for the US to impose sanctions on all countries that trade with Russia.
For India, the matter is of particular concern, considering how even the 50 per cent total tariffs (25 per cent tariff plus 25 per cent punitive) have begun to bite its exports. The reason Trump had given was India’s dalliance with Moscow, buying up cheap Russian oil on a margin over the past couple of years.
With great effort, PM Modi and Commerce Minister Piyush Goyal had continued the strained negotiations even while seemingly cutting back on fresh oil shipments — so much so that Trump had gleefully proclaimed just last month that India was doing what he wanted and that a trade deal could happen any time soon.