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India and the U.S are on the verge of signing a military agreement that will allow the U.S to inspect hardware it sells to Indian armed forces. The “End-user Verification Agreement” (EUVA) will be applied to all the defence deals between the two countries instead of separate agreements for acquisitions.
The EUVA will decide a majority of U.S military sales. Although India has accepted conditions of the agreement on a case-by-case basis, the increase in transactions of military hardware has created the need for a more comprehensive pact. Two other pacts including the Communications Interoperability and Security Memorandum of Understanding and the Logistics Support Agreement were also discussed between the two nations.
The U.S Under Secretary of State for Political Affairs William Burns has been trying to get through this agreement during his recent visit to India. “Ideally we would not like a pact that requires physical on-site verification of military equipment,” a senior Indian Defence Ministry official said. India feels that getting its inventory “intrusively inspected without reason” is not required. While India is willing to offer inventory and accountability record of sensitive equipment, the Americans have added a clause that seeks to inspect them physically.
India is being cautious since it does not want to commit itself to an agreement that could hold up defence supplies or disrupt product support. Such agreements are not conducive to future amendments under U.S laws.
India does not have any such agreements with any other countries but with the U.S, it will become a requirement. Hence, the final EUVA draft will be crucial and will factor in the concerns and demands of both the countries. It has been indicated that US firms like Lockheed Martin and Boeing may lose out on billions of dollars in defence orders if a compromise on the end-user pact is not reached.
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