U.S. emerges as India’s top defence export partner, capturing over 50% market share reveals AMCHAM report

Following NSA Jake Sullivan’s India visit, AMCHAM reports that India’s defence exports in FY 2022-23 stood at $1.6 billion, showing over a 10x increase in 5 years.

New Delhi, 25 June 2024: The American Chamber of Commerce in India (AMCHAM), an apex chamber of U.S. Industry in India has reported a remarkable progress in the India-U.S. defence alliance. AMCHAM has specifically studied the U.S. – India Defence Partnership emphasising the importance of cooperative efforts in determining global security and promoting wealth for both the nations.
The U.S.-India defence partnership encompasses acquisitions, co-production and co-development for global markets, joint ventures, training and innovation, enhancing India’s defence exports. India’s defence acquisitions include a diverse range of equipment from the U.S.
While speaking about the significance of this report, Ms Ranjana Khanna, Director General and CEO – AMCHAM India, said, “U.S.-India relationship has developed into a global strategic partnership, based on shared democratic values and increasing convergence of interests on bilateral, regional and global issues”.
Suggesting that both countries are committed to further strengthening bilateral cooperation in defence and security domains, she said, “We thought it prudent and timey to highlight the US- India defence partnerships in the context of the US – National Security Advisor, Jake Sullivan’s recent India visit; and the Government’s target of achieving $5 billion in defence exports by FY 2024-25.”
“It is important to note that Defence exports to the U.S. accounted for over 50% of total exports, strengthening the partnership and exceeded $2.8 billion during the last 5 years”, she added.
The AMCHAM report (U.S.-India Defence Partnership: Co-Production & Co-Development) indicates that supporting the Government of India’s mission to enhance defence exports, U.S. industry in India, and their Indian partners, have contributed to the U.S. becoming the number 1 defence exports destination for India. India’s defence exports were $1.6 billion (approx. INR 16,000 crore) in the financial year 2022-23 which represents over a 10x increase in the last 5 years.
American companies have fostered strong partnerships with many in-country industrial entities, defence PSU’s, over 1,000+ MSMEs, academia, start-ups and incubators. Economic growth, job creation, and innovation are natural by-products of this partnership. Innovation, skilling, and research and development enrich defence capabilities, augmenting this collaboration’s impact.
The U.S. defence industry in India has played a key role in job creation through direct investments and by collaborating with their network of suppliers and joint venture partners and have created over 28,000 direct jobs and a gainful employment for an additional 20,000 people, while bringing in improvement in quality of life for over 2.6 million people through initiatives in STEM education, skilling, nutrition, health, livelihood, sanitation, and sustainability through partnerships with science and technology institutes and other foundations. The U.S. and India share common interests in countering terrorism, ensuring maritime security, and maintaining a free and open Indo-Pacific region. Collaborative defence efforts contribute to the pursuit of these shared objectives.

Highlights of the US – India defence partnership as noted by AMCHAM:

The U.S. has emerged as the number one destination for India’s defence exports, with exports to the U.S. accounting for over 50% of total exports, exceeding $2.8 billion in the last five years.

India’s defence exports are witnessing an exponential growth, reaching $1.6 billion in the financial year 2022-23, marking a remarkable tenfold increase over the past five years.

Joint ventures and collaborations between U.S. companies and Indian entities, such as Lockheed Martin-Tata Advanced Systems, Boeing-HAL, BAE Systems-HAL, and GE-HAL, are fostering technology transfer, innovation, and skill development.

The creation of over 28,000 direct jobs and gainful employment for an additional 20,000 individuals by the U.S. defence industry in India, along with initiatives in STEM education, skilling, health, and sustainability benefiting over 2.6 million people.

Collaborative defence efforts aimed at countering terrorism, ensuring maritime security, and maintaining a free and open Indo-Pacific region, are reflecting shared strategic objectives.
AMCHAM supports and welcomes the U.S. defence companies’ commitment and keenness to work with the government of India to bridge the gap in infrastructure, raw materials and shortage of skilled worker by developing an ecosystem worthy of it, and as responsible corporate entities, partnering in India’s inclusive growth.