US-India COMPACT Initiative

GS 2 – International relation

Recent Developments

The leaders of the United States and India have jointly introduced the U.S.-India COMPACT initiative, aimed at strengthening bilateral ties.

Overview of the US-India COMPACT Initiative

The Catalyzing Opportunities for Military Partnership, Accelerated Commerce & Technology (COMPACT) initiative is designed to enhance collaboration in key areas. It serves as a strategic framework to expand military cooperation while prioritizing advancements in technology, trade, and defense industry partnerships. The initiative emphasizes tangible results within the year to reinforce trust and mutual benefits.

Key Aspects of the Initiative

1. Defense Procurement & Policy Reforms:
   • Establishment of a ten-year framework to bolster the US-India Major Defense Partnership.
   • Commitment to increased U.S. defense sales and co-production agreements.
2. Military & Technological Advancements:
   • Strengthening collaboration in space, air defense, missile technology, maritime security, and undersea operations.
   • Formation of the Autonomous Systems Industry Alliance (ASIA) to drive AI-enabled defense innovations, particularly in counter-drone and maritime security systems.
3. Economic & Trade Growth:
   • Goal to double bilateral trade to $500 billion by 2030 under “Mission 500.”
   • Initiation of negotiations for a Bilateral Trade Agreement by late 2025, prioritizing fair trade, economic security, and employment growth.
4. Strengthening Innovation & Technology Ties:
   • Introduction of the US-India TRUST initiative to foster collaboration in sectors like defense technology, artificial intelligence, semiconductor production, quantum computing, biotechnology, energy, and space exploration.
5. Space & Critical Minerals Partnership:
   • Launch of INDUS Innovation, inspired by INDUS-X, to facilitate joint academic and industrial advancements in space research and emerging technologies.
6. Future Space Collaboration:
   • NASA and ISRO, in partnership with AXIOM, will send the first Indian astronaut to the International Space Station (ISS).
   • Expedited launch of the NISAR dual-radar satellite to enhance Earth observation capabilities.

This initiative underscores the deepening strategic partnership between India and the U.S., focusing on defense, technology, and economic cooperation.