Introduction
Amidst the rising maritime challenges posed by China's assertive behavior in the Indo-Pacific region, the strategic partnership between the United States and India has emerged as a pivotal counterweight. Recognizing the shared interests in maintaining a rules-based maritime order, both nations have embarked on an unprecedented level of naval collaboration. However, to fully harness the potential of this partnership and effectively counter China's naval dominance, further integration and operational coordination between the two navies are imperative.
"The Indian Navy’s INS Satpura, sails alongside USNS Pecos during a refueling-at-sea during RIMPAC" by U.S. Indo-Pacific Command is licensed under CC BY-NC-ND 2.0.
The Convergence of Interests
The convergence of U.S. and Indian interests in the maritime domain stems from their mutual concerns over China's increasingly threatening maritime posture. For the United States, India's geographic location and naval strength are viewed as critical assets in preventing Chinese domination of the Indo-Pacific. India's Andaman and Nicobar Islands, situated near the Malacca Strait, provide leverage to deter Chinese aggression, as 80 percent of China's imported oil passes through this crucial chokepoint.
On the other hand, India recognizes the necessity of naval cooperation with the United States to bolster its position as a leading regional security provider and counterbalance Chinese aggression along its borders. This convergence of interests has brought the two sides together, paving the way for an unprecedented level of collaboration in recent years.
Enhancing Interoperability and Integration
To further strengthen maritime security and counter China's naval might, the U.S. and Indian navies must achieve greater integration, with more interoperable equipment and improved operational collaboration. Achieving this objective will require India to reduce its reliance on Russian platforms, which currently account for approximately 40 percent of the Indian Navy's equipment.
The United States can seize the opportunity presented by Russia's difficulties in meeting India's naval orders amid the ongoing conflict in Ukraine. By offering affordable solutions through strategic use of Excess Defense Articles (EDA) and Foreign Military Financing (FMF), the U.S. can help India meet its naval needs while decreasing its dependence on Russian military equipment.
Collaborative Initiatives and Joint Production
The United States and India could explore joint production initiatives in the realm of sea-denial systems, such as torpedoes, underwater loitering munitions, and unmanned undersea vehicles (UUVs). These collaborative efforts would not only strengthen India's antisubmarine warfare capabilities but also enable closer monitoring of Chinese naval activities.
Furthermore, the two countries could leverage the recently established India-U.S. Defense Acceleration Ecosystem to identify promising Indian maritime intelligence, surveillance, and reconnaissance (ISR) startups. These startups could collaborate with U.S. players in unmanned surface vehicles (USVs) and defense labs from both nations to develop innovative maritime ISR platforms.
Minister of State for Defense Ajay Bhatt's Statement
"Qualifying a shipyard under the Master Shipyard Repair Agreement (MSRA) enables it to compete for U.S. Navy ship repair projects. The MSRA covers aspects such as security, payments, and liabilities and is reviewed every five years or as necessary. These repairs benefit Indian shipbuilders commercially and can lead to more opportunities. An American Navy ship will be berthed in an Indian shipyard during its repair," stated Minister of State for Defense Ajay Bhatt in the Lok Sabha in 2023.
Expanding Network of Ship Repair
Integrating Kolkata Port into this growing network will enhance India's defense partnership with the United States. This initiative could also attract interest from American allies like the UK, potentially positioning India as a central hub for ship maintenance and repair services.
In March 2024, the UK's Royal Navy announced that two of its auxiliary ships would undergo repair and maintenance at Kattupalli Shipyard in Chennai. These arrangements highlight the strengthening defense collaboration between New Delhi and Washington, which has significantly evolved over the past two decades. The two nations conduct regular joint military exercises, have signed multiple foundational defense agreements, and plan to co-produce the F-414 jet engine in India through a collaboration between HAL and General Electric.
Indian Dockyards sign MSRAs
Cochin Shipyard Limited (CSL), a government-owned entity, entered into the MSRA with the United States Navy. This non-financial agreement became effective on April 5, 2024, as CSL announced to stock exchanges on April 6. The agreement will enable the repair of U.S. Naval vessels under the Military Sealift Command at Cochin Shipyard. In 2024, CSL shares surged approximately 60 percent to Rs 1,079, marking a remarkable 343 percent increase over the past year.
"CSL has qualified for the MSRA after a detailed evaluation and capability assessment by the U.S. Navy - Military Sealift Command," CSL informed stock exchanges.
Mazagon Dock Shipbuilders (MDL) experienced an 8 percent surge in shares, reaching a 52-week peak of Rs 2,246.95 on September 8, after signing an MSRA with the U.S. Government, represented by NAVSUP Fleet Logistics Center (FLC) Yokosuka. This agreement, while non-financial, is significant, as only two shipyards in India, including MDL, have entered into such an arrangement. The MSRA will facilitate voyage repairs for U.S. Navy Ships at MDL.
Financial Overview
In the quarter ending June 2023, MDL reported a 40 percent year-on-year increase in consolidated net profit, totaling Rs 314.34 crore, despite a 3 percent revenue decline to Rs 2,172.76 crore and a 1 percent drop in EBITDA to Rs 171.69 crore. Following a significant surge, MDL's stock entered a consolidation phase, forming a Flag chart pattern on the weekly timeframe. Shrikant Chouhan of Kotak Securities noted that the recent breakout indicates a bullish continuation pattern, suggesting a potential upward movement. For positional traders, maintaining trading above Rs 2,005 is crucial for sustaining the uptrend towards Rs 2,230, while a close below Rs 2,005 may prompt exiting long positions.
Operational Cooperation and Joint Exercises
Decreasing India's reliance on Russian equipment is only part of the equation; fostering operational trust and close collaboration between the two navies is equally crucial. Efforts should be made to establish an interlinked chain of sound surveillance sensors (SOSUS) in the Andaman and Nicobar Islands, connecting with the existing "Fish Hook" SOSUS network operated by the U.S. and Japan. This would enable comprehensive undersea domain awareness and facilitate the tracking of Chinese submarine movements.
Additionally, the two countries should prioritize greater information sharing and joint assessment of intelligence. Regular meetings between U.S. and Indian naval intelligence analysts, such as through a standing U.S.-India Joint Intelligence Assessment Center, could align their threat perceptions and underscore the urgency of maritime security cooperation. Logistics cooperation is another area ripe for expansion. Building on the existing master ship repair agreements (MSRAs) and the Logistics Exchange Memorandum of Agreement (LEMOA), the United States should work towards signing MSRAs with more Indian shipyards, potentially incorporating a waiver for India in the Jones Act to facilitate repairs of U.S. Navy combat vessels.
Joint naval exercises should be regularized, with U.S. warships engaging in exercises with Indian vessels on nearly every transit between the Persian Gulf and the western Pacific. Establishing an annual bilateral naval exercise in the Bay of Bengal, incorporating multiple phases focused on areas such as humanitarian assistance and disaster relief (HA/DR) and anti submarine warfare, would further strengthen operational coordination.
Conclusion
The deepening U.S.-India naval partnership holds the key to bolstering maritime security and deterring Chinese aggression in the Indo-Pacific region. By fostering greater interoperability, leveraging collaborative initiatives, and expanding operational cooperation, the two nations can unlock the full potential of their strategic convergence. Sustained efforts to enhance equipment integration, joint production, intelligence sharing, logistics coordination, and joint exercises will not only reinforce maritime deterrence but also position the U.S. and Indian navies as formidable guardians of a rules-based maritime order in the years to come.
Comments