US Defence sales to India likely to rise to $18 B in 2019

"I truly believe that our two nations have an incredibly unique opportunity to move forward together, for the good of both of our peoples, the Indo-Pacific region, and indeed the entire world." - U.S. Secretary of State Mike Pompeo, June 12, 2019

Secretary of State Pompeo will travel to New Delhi, India, June 25-27, where he will meet with Prime Minister Narendra Modi and Minister of External Affairs Subrahmanyam Jaishankar to discuss our ambitious shared agenda for the U.S.-India strategic partnership. While in India, the Secretary will deliver a speech on the future of the relationship and opportunities for cooperation on global issues of shared concern.

THE U.S.-INDIA STRATEGIC PARTNERSHIP IS REACHING NEW HEIGHTS

• As vibrant democracies rooted in shared values, with fast-growing economies, cultures of entrepreneurship, and leadership positions on the global stage, the United States and India are natural strategic partners.
• President Trump and Prime Minister Modi are firmly committed to accelerating the upward trajectory of this partnership. Prime Minister Modi's sweeping mandate in the recent elections creates a unique opportunity to realize this vision.
• The United States and India are moving quickly to achieve our shared vision for a free, open, and rules-based Indo-Pacific region by expanding cooperation in areas such as energy, aviation, and space.
• We have elevated the level of strategic interaction between our two countries, most notably through the annual 2+2 Ministerial Dialogue that pairs the Secretaries of State and Defense with their Indian counterparts.
  • The first 2+2 was held in September 2018 and culminated in the announcement of a new tri-service exercise and the signing of a secure communications agreement that will enable India to operationalize its status as a Major Defense Partner.
  • We anticipate holding the next 2+2 in late 2019 in Washington, D.C.
• The United States granted India Strategic Trade Authorization tier 1 status last year, allowing India to enjoy the same license-free access to certain defense articles as NATO allies, Japan, South Korea, and Australia. This status also creates greater supply chain efficiency and supports U.S. industry and investment.
• We will hold the second trilateral meeting between the leaders of the United States, India, and Japan on the margins of the G20 Summit in Osaka.
• The reinvigorated quadrilateral dialogue between the United States, India, Japan, and Australia has met four times since President Trump took office to discuss ways to strengthen a rules-based order in the Indo-Pacific in which all nations are sovereign, strong, and prosperous.
• Secretary Pompeo's visit marks the third visit to India by a Secretary of State during the Trump Administration.

OUR ECONOMIC RELATIONSHIP HAS ENORMOUS POTENTIAL FOR GROWTH

• The United States is India's most important trading partner. As India's number one overseas market, the United States purchases close to one-fifth of India's exports. India is also the fastest growing major market for U.S. goods.
• Two-way bilateral goods and services trade with India totaled $142 billion in 2018, up 12.6 percent, or almost $16 billion, over the prior year.
• U.S. crude oil exports to India are surging, increasing India's energy security while reducing our bilateral trade deficit. The United States exported nearly 50 million barrels of crude to India in 2018, compared to less than 10 million barrels in 2017, and is on pace to export even greater volumes in 2019.
• U.S. defense sales to India are estimated to reach approximately $18 billion by 2019 from near zero in 2008, boosting India's national security capabilities and increasing employment in both countries.
• U.S. companies see great opportunity in India, and increased economic openness and investment will yield mutual benefit. The Trump Administration is working to ensure that American companies operating in India have the same level playing field that Indian companies enjoy in the United States.
• There is enormous potential to grow our trade relationship and create the high-quality jobs that Prime Minister Modi wants if India lowers trade barriers and embraces fair and reciprocal trade.

THE BOND BETWEEN THE UNITED STATES AND INDIA IS UNBREAKABLE

• As the world's oldest and largest democracies, the United States and India share deep respect for one another's values and traditions. Our people and cultures are profoundly intertwined.
• The Indian diaspora in the United States is nearly 4 million strong. Indian-Americans are thriving in the United States and helping to make our communities more secure and prosperous through their leadership in industry, academia, and government.
• Indian students enrich our campuses, contribute to the U.S. economy, and build lifelong bonds with Americans. The number of Indian students studying in the United States has increased for the fifth year in a row, more than doubling from 96,000 students in the 2012-13 academic year to 196,000 in 2018.
• In 2018, Indians received 70 percent of H-1B visas issued worldwide. The program allows talented Indian professionals to participate in the U.S. economy and return to their country with new skills to contribute to India's economic growth, to our mutual benefit.
• Support for U.S.-India ties transcends political parties and Presidential administrations.