Article Posted on : - Jun 25, 2013

NEW DELHI (PTI): India and the US have agreed to go beyond the buyer-seller relationship in the field of military hardware trade against the backdrop of armed forces buying American equipment worth around Rs 40,000 crore in the last few years.

The two countries stated that their defence trade has been expanding in the recent past and the induction of the C-130J Super Hercules and C-17 heavy lift transport aircraft in the IAF and the P-8I anti-submarine warfare aircraft into the Navy were significant milestones in this direction.

"Both sides concur on the need to go beyond buyer-seller relations and on the opportunities for wider defence trade and industry collaboration in areas of mutual interest. Both sides are engaging in a number of ways and through diverse forms of dialogue and exchanges to progress defence cooperation," an India-US defence fact-sheet said.

Since 2005, India and the US have signed a number of defence deals worth around Rs 40,000 crore but it has slowed down in the last few years probably over strict American laws related to transfer of technology of hi-tech weapon systems and India's reluctance to be a buyer of defence equipment.

"Both sides plan to continue pursuit of defence cooperation to mutual benefit. Both sides reiterated that their defence establishments should remain engaged through the process of dialogues, regular staff talks, reciprocal high level visits and other exchanges," the fact-sheet said.

Terming defence cooperation as an important aspect of their bilateral relationship, the two sides said, "The defence relationship encompasses military-to-military dialogues, exercises, defence sales, professional military education exchanges and practical cooperation."