Defence pact: India prevails over US

New Delhi: The government is seeing it as a diplomatic victory over the US as Washington has made an exception for India. In a departure from End User Monitoring agreements with other countries, America has agreed to India's terms.

What this means is that the US has agreed not to have a unilateral right to inspect India's military bases or the military equipment it sells to India.

The inspection of the military equipment sold by the US to India will be done at a place and time of India's choice and with mutual consultation.

This pact which is yet to be signed between the two countries will be binding for all future US military sales to India. And importantly, America can't have a rethink. So, no future US law can undo this pact with India.

So why is the US making an exception? Well, because India plans to spend 40 billion dollars on buying weapons and other defence equipment over the next 3 years. And the US is eyeing at least a quarter of that.

WHAT US HOPES TO SELL TO INDIA

• 126 fighter jets: $10 billion
• Attack helicopters: $2 billion
• Electronic equipment: $1 billion
  

India's defence outlay is clearly far too big for the US to let an intrusive clause come in the way of a lucrative relationship.