U.S.-India COMPACT Initiative: Strengthening Strategic Ties Amid Lingering Tensions

Strategic cooperation between the U.S. and India has spanned three decades now and has witnessed several landmark agreements that have elevated this ‘Comprehensive Global Strategic Partnership’ to its present stature. The trajectory that defense cooperation has taken over the years has been reflective of the changing geopolitical climate, rising stature of India on the global stage and vested interests of the U.S. in regional politics in Asia. The most recent of these agreements, launched in February 2025, is the U.S.-India COMPACT (Catalyzing Opportunities for Military Partnership, Accelerated Commerce & Technology) agreement that re-commits to the willingness of both states to expand multi-domain cooperation. While defense, commerce and technology are all interconnected pillars of national strength, this would be the first agreement of its kind to bring these critical sectors together in a coordinated effort.

Key agreements between the U.S. and India

Not restricting to a buyer-seller relationship, the shared strategic interests between the two states have carved out a partnership which has increasingly focussed on greater military integration, sharing advanced technologies, innovation, and research and development. A string of key agreements over time has made this expansion and deepening of strategic relations possible. As the following table lists out the major defense agreements and their main features, it goes on to show the incremental developments that have been achieved by each successive new framework.

Agreement	Year	Main Features	Key Achievements
Agreed Minute on Defense Relations	1995	– Formalization of defense ties- Regular military-to-military consultations – Naval and military officer exchanges	– Institutionalized defense dialogue- Established India-U.S. Defense Policy Group (DPG)
General Security of Military Information Agreement (GSOMIA)	2002	– Legal framework to protect exchanging classified military information- Protocols to protect sensitive data	– Established trust among both defense partners- Allowed Indian defense institutions to access classified intelligence from the U.S. military systems
New Framework for U.S.-India Defense Relationship	2005	– Replaced the 1995 Agreed Minute on Defense Relations- 10-year roadmap for long-term strategic cooperation	– Facilitated military-to-military cooperation and defence trade- Increased multilateral participation in bilateral joint engagements like the Malabar Naval Exercises
Civil Nuclear Agreement (123 Agreement)	2008	– Allowed civil nuclear trade between the U.S. and India- Recognition of India’s unique status as a nuclear-armed state outside the Nuclear Non-Proliferation Treaty	– Legitimized India’s civil nuclear program- Helped secure India a waiver from Nuclear Suppliers Group in 2008
Logistics Exchange Memorandum of Agreement (LEMOA)	2016	– Logistics support for reciprocal access to military bases for refueling, repair, and resupply	– Improved military interoperability during joint exercises like Yudh Abhyas, Malabar, and Cope India- Boosted collaboration in humanitarian assistance and disaster relief missions in the Indian Ocean region
Communications Compatibility and Security Agreement (COMCASA)	2018	– Installation of secure, encrypted U.S.-origin communications systems on Indian platforms	– Allowed real-time data sharing during air and naval operations.- Unraveled full capability of U.S.-origin military systems used in India like the  C-130J, C-17, P-8I Poseidon Aircrafts and MH-60R helicopters
Basic Exchange and Cooperation Agreement (BECA)	2020	– Geospatial intelligence sharing including satellite and topographical data.	– Enhanced precision targeting capability for India- Increased maritime domain awareness in the Indian Ocean region and South China Sea – Aided surveillance in the Ladakh region after the 2020 Galwan clash between India and China
Initiative on Critical and Emerging Technologies (iCET)	2022	– Cooperation on artificial intelligence, quantum technology, space, semiconductors, and 5G/6G telecommunication technologies	– Tech alliance and academic collaboration- Enhanced collaboration between space agencies NASA and ISRO- Accelerated projects like jet engine tech transfer
India-U.S. Defense Acceleration Ecosystem (INDUS-X)	2023	– Defense innovation and co-production- Public-private partnership in technological domains	– Cross-border defense startups partnerships- AI drone detection and Counter-UAS systems collaboration

Focus areas of the COMPACT agreement

The agreement establishes a new ten-year framework for defense partnership, updating the structure of existing foundational agreements and providing a road-map for future collaboration. ​While the long-standing objectives of joint production remain the priority, clear timelines have been delineated for this technological self-reliance. Aligning with the ‘Make in India’ initiative, co-production of U.S.-origin defense systems involving Indian manufacturers facilitates technology transfer as well as job creation in India. 

Defense Expansion

Procurements and co-production plans have been announced for US-origin Javelin Anti-Tank Guided Missiles, Stryker Infantry Combat Vehicles and six additional P-8I Maritime Patrol aircrafts. With a special focus to increase surveillance and engagement in the Indo-Pacific, the Autonomous Systems Industry Alliance (ASIA) has been announced for Indian and American firms in maritime technology to collaborate and co-produce systems. The two states have agreed to review existing arms transfer regulations like the International Traffic in Arms Regulations and start negotiations for a Reciprocal Defense Procurement agreement to further streamline defense procurement. This comes as a reinforcement to the active measures being taken by both states to increase military deployments in the Indo-Pacific.

Economic Expansion

Negotiations for a multi-sector Bilateral Trade Agreement are to begin shortly with an aim to trade up to  $500 billion by 2030. Push for investments in sectors such as aluminum, steel, battery materials and pharmaceuticals have been announced with a view to create more jobs in both countries.

Technological expansion

TRUST or the Transforming the Relationship Utilizing Strategic Technology initiative has been announced to strengthen collaboration in critical and emerging technologies, including artificial intelligence, semiconductors, quantum computing, biotechnology, energy, and space. Other significant areas in which the U.S. and India are seeking greater cooperation are critical minerals, space exploration, semiconductors, telecommunications, and to reduce barriers and unfair practices in export controls.

Energy expansion

Addressing the long standing hurdle to the full realization of the 2008 U.S.-India Civil Nuclear Agreement, the U.S. has welcomed India’s move to amend its Atomic Energy Act (1962) and the Civil Liability for Nuclear Damage Act (2010) to address civil liability issues and to clear the pathway for American firms to collaborate in nuclear reactors production and deployment. The U.S. reaffirmed its support of India’s bid for a full membership of the International Energy Agency. The agreement also addresses the need for increased trade in the sectors of crude oil, petroleum products and liquified natural gas in which the U.S. aims to be the leading supplier to India and the sectors of hydrocarbon sector including natural gas, ethane and petroleum products, where the U.S. is already among the top five exporters to India.

The unfolding future

Co-development and joint production in the defense sector has been in the works between the U.S. and India since the 2010s. The Defense Technology and Trade Initiative (DTTI) was launched in 2012 with an aim to promote collaborative research and development and production. This serves the goals of both states as it gives the U.S. sustained access to Indian markets and supports India’s push for self-reliance by way of initiatives like ‘Make in India’ and ‘Atma Nirbhar Bharat’ (Self reliant India). Going forward, the partnership would revolve around co-development, co-production, joint military exercises and technology sharing. But, certain export restrictions need to ease for that to fully materialise. As of now, the U.S. Export Administration Regulations (EAR), enforced by the Bureau of Industry and Security (BIS) and International Traffic in Arms Regulations (ITAR) regulate export of goods and technologies that could be harmful to national security and foreign policy objectives of the U.S.. This also includes certain dual-use technologies with both civil and military applications whose access remains limited to India. Another shortfall is where despite foundational defense agreements like COMCASA and BECA in place, operational-level intelligence sharing leaves a lot to be desired by India as the overlapping geostrategic goals of counter-balancing the rise of China has been expected to translate to greater intelligence sharing and more interoperability during joint operations. In the domain of commerce, the trade deficit of the U.S. with India has only been widening and if India continues protecting its own industries like the agricultural sector which imposes 100% tariffs on American imports, then it is going to hurt trade further as the U.S. considers it unfair and prepares to impose reciprocal tariffs to overhaul trade. Another contentious area has been e-commerce which is a multi-billion dollar industry on the rise in India but the fact that it restricts foreign companies has been a cause of friction with the U.S. who is seeking relaxation on taxes and regulations going forward. These unresolved issues have been hurting the goals of an otherwise robust partnership between the two states and any agreement that covers such multi-domain cooperation needs to account for their solutions to realize a shared future.

Shivani Yadav is a Research Fellow at the America Program of the Sixteenth Council