US-India COMPACT Initiative and its Key Focus Areas

Context: Recently, the Indian PM & US President launched the U.S.-India COMPACT initiative.

About COMPACT Initiative

• COMPACT stands for (Catalysing Opportunities for Military Partnership, Accelerated Commerce, and Technology).
• It is a strategic framework to enhance bilateral cooperation in defense, trade, technology and security.

Key Focus Areas of COMPACT

Military and Defense Partnership

• Strengthening India’s defense capabilities through increased defence trade and technology transfers.
• Expansion of joint military exercises, intelligence sharing, and strategic interoperability between Indian and US armed forces.
• Promoting co-development and co-production of defense equipment under Make in India
• Facilitating India’s procurement of advanced military platforms, such as F-35 fighter jets.

Trade and Economic Growth

• Boosting bilateral trade and investments between India and the US, particularly in energy and infrastructure.
• Focus on reducing tariff barriers and resolving trade disputes, with negotiations for a mini trade deal.

Technology and Innovation Collaboration

• Strengthening technology sharing agreements in sectors like:
  • Semiconductors, Artificial intelligence (AI) and quantum computing
  • Space technology (including satellite cooperation)
  • Cybersecurity and digital infrastructure
  • Cooperation in advanced civil nuclear technologies.
• Launch of Indus Innovation, to promote joint research and technology development in emerging fields.

Security and Counterterrorism

• Enhanced intelligence sharing and joint operations against terrorist networks.
• Increased maritime security cooperation in the Indo-Pacific, particularly in countering Chinese influence.

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