India, US sign military contract; their first since tariff and trade issues vitiated relations

India and the US have signed a military contract, their first since trade and tariff issues affected relations earlier this year. The Ministry of Defence signed the ‘letters of offer and acceptance’ with the US for sustainment support of the Indian Navy’s MH-60R helicopters, worth Rs 7,995 crore.

This contract comes a week after the US Department of Defence approved two separate sales worth USD 92.8 million for India: Excalibur artillery ammunition and Javelin anti-tank missiles, pending US Congress approval.

The MH-60R sustainment programme includes spares, support equipment, training, and technical support, aiming to boost operational availability and maintainability. India has sourced 24 MH-60R helicopters, produced by Lockheed Martin, for USD 2.6 billion, with deliveries starting in 2011.

The agreement, under the US Foreign Military Sales (FMS) programme, enables helicopter operation from dispersed locations and ships, aligning with India’s self-reliance vision. Defence Secretary Rajesh Kumar Singh attended the signing ceremony.

This is the first military FMS deal since India-US relations were affected by US tariffs on Indian goods, including a 25 per cent punitive tariff on crude oil imports from Russia.