
Washington, May 21: Prime Minister Narendra Modi’s self-reliant India policy has established industrial corridors. This initiative has increased foreign investment limits and fostered a defense-tech startup ecosystem that is already exporting. It signals a robust and growing capacity.
A recent report indicates that hundreds of companies are operational, with many rapidly emerging. India aims for a defense export target of nearly $6 billion by 2029, a significant increase from approximately $80 million a decade ago.
Mike Quigley, Vice Chair of the U.S.-China Economic and Security Review Commission, and Commissioner Leland Miller highlighted in the online magazine ‘The Wire China’ that the recent meeting between U.S. President Donald Trump and Chinese President Xi Jinping in Beijing reminded Washington of an ongoing industrial imbalance that still favors the U.S.
According to American experts, China’s manufacturing base now surpasses that of the combined bases of the U.S., Japan, and Germany. Even together, the U.S. and Europe cannot compete with China’s industrial scale. They believe India is the only viable option to restore global balance.
They stated, “This is not a matter of choice but a strategic necessity.” This perspective aligns with India’s security concerns as the country faces increasing Chinese pressure on its northern border. Keeping this reality in mind, India is rapidly advancing its defense modernization.
They further noted, “The U.S. and India are signing the right documents. Last October, both countries agreed on a roadmap that includes joint research, co-development, supply security, and an innovation bridge between American and Indian defense startups, built on years of efforts from both sides. In 2023, then-Senate Majority Leader Chuck Schumer used the Munich Security Conference to argue that the U.S. and Europe alone cannot defeat China, and India should be at the center of the response.”
Quigley and Miller emphasized that as the U.S. system for sharing defense technology with its partners evolves, simply signing more documents will not resolve the issues.
They acknowledged that India’s concerns about the growing relationship between the two countries not translating into access to basic technology are valid.
Experts remarked, “The strategic rationale for the U.S.-India partnership has been established in Washington for three years, but the architecture has not progressed. This is not primarily a failure on India’s part; it is on ours.”
Highlighting the increasing obstacles in Washington to advancing deep cooperation with India, the report stated that the issue is not a lack of intent but rather execution.
It noted, “Obstacles are growing in Washington: export control systems, complex procurement rules, financing tools, and technology-sharing frameworks designed for a different era and strategic environment. Until this architecture changes, partners will continue to operate below their potential. Each year, this gap persists. This is another year in which Beijing strengthens its industrial and technological advantages.”
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