What Happened
- India and the US reviewed and identified priority areas for co-development and co-production of defence equipment at the 18th Defence Policy Group (DPG) meeting held in New Delhi.
- The meeting, co-chaired by India's Defence Secretary Rajesh Kumar Singh and US Under Secretary of Defence for Policy Elbridge Colby, encompassed the full spectrum of bilateral defence cooperation.
- Both sides welcomed the inaugural Industrial Security Agreement (ISA) meeting in India, a step towards enabling classified defence industrial collaboration between private sector firms.
- The air-launched unmanned aerial vehicle (UAV) co-development project under the Defence Technology and Trade Initiative (DTTI) was specifically taken stock of as an ongoing joint project.
- Cooperation in emerging domains — space, artificial intelligence, cyber security, and counter-unmanned aerial vehicle (counter-UAV) technologies — was agreed to be advanced.
- Regional security dynamics including developments in West Asia were reviewed alongside broader bilateral strategic partnership progress.
Static Topic Bridges
India's Defence Industrial Policy: Make in India and iDEX
India's defence industrial ecosystem has been transformed through the Make in India initiative applied to defence manufacturing. The government introduced two positive indigenisation lists banning import of hundreds of items to promote domestic production, alongside an increased Foreign Direct Investment (FDI) cap in defence manufacturing raised to 74% via automatic route (and 100% via government route). The iDEX (Innovations for Defence Excellence) platform supports defence startups and MSMEs for developing cutting-edge technologies. The INDUS-X initiative between India and the US, launched in June 2023 under iCET, is the bilateral extension of this approach, connecting Indian defence startups with US counterparts. ISA-enabled collaboration directly supports the Make in India goal by giving Indian private firms access to classified US defence industrial information.
- FDI in defence manufacturing: 74% via automatic route; 100% via government route
- Two Positive Indigenisation Lists: banning import of 300+ defence items cumulatively
- iDEX: supports startups and MSMEs in defence technology innovation
- INDUS-X (2023): bilateral defence innovation bridge under the iCET framework
- Defence Acquisition Procedure (DAP) 2020: categorises procurement to favour indigenous development
Connection to this news: India's identification of new co-development priorities with the US directly supports the domestic defence industrial base — technology transfers and joint production contribute to indigenisation goals.
Defence Technology and Trade Initiative (DTTI) Structure
DTTI, established in 2012, is the primary bilateral mechanism for identifying and advancing defence technology co-development and co-production projects. It comprises four Joint Working Groups (JWGs): Land Systems, Naval Systems, Air Systems, and Aircraft Carrier Technology Cooperation. The Air Launched UAV project — specifically mentioned in this DPG meeting — was formalised as a Project Agreement under the Air Systems JWG and represents one of DTTI's most tangible deliverables. DTTI's scope has expanded under the iCET framework (2023) to cover AI, quantum computing, and advanced materials. The Industrial Security Agreement (ISA, signed 2019) was a crucial enabler for DTTI, allowing classified defence industrial information to be shared with Indian private sector companies.
- DTTI established: 2012 to operationalise India-US Major Defence Partnership
- Four JWGs: Land Systems, Naval Systems, Air Systems, Aircraft Carrier Technology
- Air-Launched UAV: project agreement signed under Air Systems JWG
- ISA (2019): enables industry-to-industry classified collaboration
- Recent expansion: AI, quantum, counter-UAV, cyber under iCET framework
Connection to this news: The DPG's review of DTTI project priorities and the ISA meeting directly reflects DTTI's operational progress and efforts to deepen its implementation.
US Foundational Defence Agreements with India
India has signed four foundational defence agreements with the United States that form the infrastructure for interoperability and advanced cooperation. LEMOA (Logistics Exchange Memorandum of Agreement, 2016) allows mutual use of military logistics facilities. COMCASA (Communications Compatibility and Security Agreement, 2018) enables sharing of encrypted communications equipment. BECA (Basic Exchange and Cooperation Agreement, 2020) permits sharing of advanced geospatial intelligence and data for missile and drone guidance. These agreements, alongside India's STA-1 status (Strategic Trade Authority-1, 2018), allow India access to advanced dual-use technologies. They form the foundation upon which co-production and co-development frameworks like DTTI and INDUS-X operate.
- LEMOA (2016): mutual logistics support, access to military bases
- COMCASA (2018): encrypted communications sharing for interoperability
- BECA (2020): geospatial intelligence and topographical data for precision weapons
- STA-1 status (2018): license-free access to advanced US dual-use technologies
- All four together enable deep technology sharing and joint operations capability
Connection to this news: The co-production and co-development review at the DPG builds upon these foundational agreements — each enabling specific forms of technology transfer and collaborative production.
India's Drone and Counter-UAV Policy Framework
India has been rapidly developing its drone ecosystem through the Drone Rules 2021, the Production Linked Incentive (PLI) Scheme for Drones, and a ban on import of drones (except for defence, security, and research). The Drone Federation of India and iDEX have supported multiple drone startups under the indigenous development push. In parallel, counter-UAV systems are increasingly important for border security, given drone-based smuggling on the Pakistan border and cross-border surveillance concerns. The joint DTTI project on air-launched UAVs and the DPG's focus on counter-UAV technology directly interfaces with India's own evolving drone policy and security needs.
- Drone Rules 2021: liberalised framework replacing 2018 rules; eased certification for domestic operators
- PLI Scheme for Drones: ₹120 crore to incentivise domestic drone manufacturing
- Import ban on drones (except defence/security/research): pushes domestic manufacturing
- Counter-UAV use cases: anti-drone grid for Delhi, border monitoring, anti-smuggling operations
- DRDO has developed anti-drone systems; collaboration with US adds high-end capability
Connection to this news: The DPG's inclusion of air-launched UAV co-development and counter-UAV technologies as cooperation priorities directly connects US defence technology collaboration to India's domestic drone security requirements.
Key Facts & Data
- 18th India-US DPG meeting: held in New Delhi, March 2026
- Co-chaired by Defence Secretary Rajesh Kumar Singh (India) and Elbridge Colby (US)
- Inaugural Industrial Security Agreement (ISA) meeting in India: facilitates private sector defence industrial collaboration
- Air-launched UAV: DTTI Air Systems JWG project; one of DTTI's most concrete co-development deliverables
- New cooperation domains: space, AI, cyber, counter-UAV technologies
- STA-1 status (2018): India one of only a handful of countries with this US designation
- INDUS-X (June 2023): bilateral defence innovation bridge under iCET
- FDI cap in defence: 74% automatic route, reflecting India's openness to foreign investment in defence manufacturing