❖ India and the US have signed a new Security of Supply Arrangement (SOSA).

❖ This agreement will prioritise supply of defence equipment and components to each other to meet urgent national security requirements.

❖ The agreement, even though not legally binding, will open new avenues for cross investments and partnerships between Indian and US companies 

❖ India and the US are also negotiating another pact – the Reciprocal Defence Procurement Agreement (RDP).

❖ It will drastically increase opportunities for Indian manufacturers to engage with US defence majors.

❖ Once RDP is finalised, India will join a list of 26 countries accorded the status of being Defence Federal Acquisition Regulation Supplement (DFARS) compliant.

❖ Only these countries are qualified to supply significant components and parts for American military orders