The buyer-seller trap: Why America hasn’t delivered what India expected
US defense sales to India have surged past $22 billion since the initial deal for six Lockheed Martin C-130J Super Hercules aircraft was signed in early 2008. Since then, the US has become one of India’s key arms suppliers. However, despite the growth in military sales and bold initiatives such as the 10-Year Framework for the US-India Major Defense Partnership, defense-industrial cooperation between the two countries still suffers from a wide gap between ambition and execution.
Washington is keen to sell platforms, many of which have already seen more than 30 years of service in the US armed forces. Most of these deals have been one-way transactions, with little or no transfer of technology. Lockheed Martin’s and Boeing’s Make in India initiatives have largely remained “build-to-print” arrangements, again with minimal or no real technology transfer.
The past two years have seen a growing level of distrust between the world’s largest and oldest democracies. It is becoming clear that the US is not interested in India’s rise as a global power. US Deputy Secretary of State Christopher Landau stated at the last Raisina Dialogue in New Delhi that Washington will not repeat its past approach – read mistake – with China by granting India unfettered market and technology access that could lead to strong commercial competition. Washington wants India to be strong enough only to serve as a bulwark against China, and not to become an independent power center or a technological and economic power.
Frequently imposed tariffs and the threat of sanctions also hang over India like a sword, adding to the sense of unpredictability. In the last two years, the US has openly admonished its friends and NATO allies and has imposed sanctions on them.
The high-level goals face hurdles from strict US regulations, differing national priorities, and slow bureaucratic delivery. India wants full technology transfer, local intellectual property ownership, and self-reliance under Atmanirbhar Bharat (Self-Reliant India) policy. It also wants to preserve its strategic autonomy. The US, however, sees cutting-edge military hardware as a sensitive national security asset requiring tight oversight. Its International Traffic in Arms Regulations (ITAR) and export administration regulations complicate the sharing of sensitive technical data. Agreements, initiatives, and declarations are all well and good, but the relationship is still waiting for real industrial breakthroughs that can turn intent into capability.
Most recently, delays in the supply of GE F404 engines for the LCA Mk1A program have angered Indians and pushed public opinion to a low point. The prolonged negotiations over the co-production of GE F414 jet engines have also raised doubts about the scope of critical technology transfer and the extent of Make in India content in sub-components. In addition, the fact that the US continues to court Pakistan remains another thorn in its relationship with New Delhi.
Agreements vs Reality
End of the Cold War, and Washington’s growing interest in taking on China in the Indo-Pacific brought the US closer to India. Since the turn of the century there has been increased activity in security fields with many military industrial and logistics and communication related agreements. The defense relationship is anchored in successive 10-year framework agreements signed in 2005, 2015, and a renewed pact in October 2025, alongside foundational military communication and logistics........
