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“The relationship is very strong between the US and India. In Trump 1.0, Prime Minister Modi and his outstanding leadership with President Trump built a lot of momentum that continued into the next administration. And here we are at the beginning of Trump 2.0,” Lall said in an interview to CNBC-TV18. “There will be a lot of synergies on the defence relationship, not only from a defence trade standpoint but also from the operational standpoint.”
The US-India defence relationship has witnessed a remarkable transformation over the past two decades. Defence trade between the two democracies now stands at over $22-23 billion, with more agreements in the pipeline. Lall emphasised that this number is poised to grow further, driven by shared strategic objectives. “When you have the largest democracy and the oldest democracy working hand in hand with common objectives against adversaries around the world, there is meaningful collaboration in terms of platforms and supply chains.”
Beyond traditional arms sales, the Trump administration is expected to push for deeper defence industrial cooperation. “I think co-production, co-development, and indeed, co-R&D for new platforms and capabilities is a way both democracies could grow together, leveraging the strengths of each country,” Lall stated.
Below is the verbatim transcript of the interview.
Q: What’s on the US wish list this time around?
Lall: I think the relationship between the US and India is very strong. During Trump 1.0, Prime Minister Modi and his outstanding leadership, together with President Trump, were able to build a lot of momentum that continued into the next administration. Now, here we are at the beginning of Trump 2.0.
I think there will be a lot of synergies in the defense relationship, not only from a defense trade standpoint but also from an operational perspective, with many military-to-military exercises. Additionally, there will be collaboration and initiatives in critical and emerging technologies.
Q: What do you think are the priorities of the US administration in terms of selling weapon systems to India right now?
Lall: The defense trade has grown tremendously over the years. Currently, it stands at over $22-23 billion, and I think that is only poised to grow. This growth is driven by the fact that when the largest democracy and the oldest democracy work hand in hand with common objectives against adversaries around the world, it leads to meaningful collaboration in terms of platforms and certainly supply chains.
Q: General Atomics has recently concluded a drone deal with the Indian government. What’s next? Which areas would you like to extend the relationship with India, particularly in manufacturing?
Lall: We are very proud and congratulate both governments for signing the LoA for the 31 MQ-9Bs. Along with that will come MRO facilities in India, as well as the joint collaboration this deal brings. We have partnered with an artificial intelligence company, as well as a semiconductor company in India, and we have a large supply chain that we are looking at.
In terms of platforms, unmanned platforms are something most air forces and militaries are increasingly interested in. I believe the numbers will continue to increase, and the requirements will grow. On the nuclear side, both nuclear fission and fusion, India is exploring small modular reactors as well as fusion capabilities for clean, limitless energy. So, there are multiple areas where we, as a company, can have synergies with what India wants.
Q: Do you expect the US government to push for fighter jet sales to India? And perhaps, will joint manufacturing of defense items get a push under the Trump administration as well?
Lall: I think so. Co-production, co-development, and indeed co-R&D for new platforms and capabilities is a way for both democracies to grow together by leveraging the strengths of each country. In India, you have a great talent pool and innovation at a lower cost, and when combined with the prowess of the American military system, both countries stand to gain.