U.S.-India COMPACT Initiative

17.02.2025

U.S.-India COMPACT Initiative

Why in the news?    

         Recently, the President of the USA and Prime Minister of India launched the U.S.-India COMPACT initiative.

About the U.S.-India COMPACT Initiative:

• The Catalyzing Opportunities for Military Partnership, Accelerated Commerce & Technology (COMPACT) initiative will drive transformative change across key pillars of cooperation.
• It is a framework that will lay the foundation for deepening military partnerships, with a clear focus on technology, trade, and defence industrial cooperation.
• Under this initiative, they committed to a results-driven agenda with initial outcomes this year to demonstrate the level of trust for a mutually beneficial partnership.

Key features of COMPACT Initiative:

• New Defence Procurements & Regulatory Reforms: A new ten-year Framework for the US-India Major Defense Partnership, with the US pledging additional defence sales and co-production initiatives.
• Advancing Defence Technologies & Military Collaboration: To accelerate cooperation in space, air defence, missile systems, maritime, and undersea operations. The launch of the Autonomous Systems Industry Alliance (ASIA) will spur innovation in AI-enabled counter-UAS and maritime defence.
• Economic & Trade Expansion: Under this component both countries aim to double bilateral trade to $500 billion by 2030 under “Mission 500.” They plan to negotiate the first phase of a Bilateral Trade Agreement by fall 2025, focusing on fair trade, national security, and job creation.
• Strengthening Technology & Innovation Ties: The launch of the US-India TRUST initiative will boost cooperation in defence, AI, semiconductors, quantum computing, biotechnology, energy, and space.
• Boosting Space Cooperation & Critical Minerals Partnership: To deepen space collaboration includes the introduction of INDUS Innovation, inspired by the INDUS-X platform, which will drive academic and industrial partnerships in space and emerging tech.
• Space Collaboration in 2025: NASA and ISRO partner via AXIOM to send the first Indian astronaut to the ISS and expedite the NISAR dual-radar satellite launch.

                                                              Source: Financial Express

Consider the following statements regarding the U.S.-India COMPACT Initiative:

1. It will lay the foundation for deepening military partnerships.

2. Under these initiatives India and the US aim to double bilateral trade to $500 billion by 2030 under “Mission 500.”

Which of the statements given above is/are correct?

A.1 only

B.2 only

C.Both 1 and 2

D.Neither 1 nor 2

Answer C