India gets a high-tech boost as US elevates India to most-important allies list

In a big boost to India, the US has eased the export restrictions for high-technology product sales to India by designating it as a Strategic Trade Authorization-1 (STA-1) country, the only South Asian nation to be on the 36 countries list. This will allow India to import a wide range of high-tech products from US, including sensitive defence technologies.

"We have granted to India Strategic Trade Authorization STA-1," US Commerce Secretary Wilbur Ross announced yesterday, adding that this is "a very important change" in India's status in the export control regime.

What it means for India:

The new regulatory change will not only enhance the bilateral defence trade relationship between the two countries, but will allows India to buy more advanced and sensitive technologies from America at par with that of the US' closest allies and partners. The designation authorises the export, re-export and transfer (in-country) of specified items.

Reason behind India's elevation:
India and the US share an interest in countering China's expanding economic and military weight. US has emerged as a top arms supplier to India, selling more than $15 billion of weapons over the past decade.

Washington has offered India the armed version of drones. This would be the first time the US has sold a large armed drone to a country outside the NATO alliance.

India in the most-coveted list:
The importance of the status can be judged from the fact that there are 36 countries -- mostly Nato allies -- on STA-1 list and India is the only South Asian country to be on the list. Other Asian countries under the list are Japan and South Korea.

The STA-1 status comes after the US recognised India as a "Major Defence Partner" in 2016, a designation that America has not shared with any other country. It allows India to buy more advanced and sensitive technologies from America at par with that of the US' closest allies and partners,

Interestingly, the announcement comes at a time when India is reportedly finalising a deal with US for a missile defence protection system. The status will also give a boost to another important agreement COMCASA agreement.

COMCASA (Communications, Compatibility and Security Agreement) is one of the key agreements that the US has with its closest military allies, and allows installation of high-security US communication on defence equipment sold to the destination country. However, India is not keen to sign the agreement as it will give US access to military communication systems in India.

(Inputs from PTI)