Indo-US Trade Pact Rekindles Strategic Momentum, Space and Defence Ties Surge to New Heights

US-India

The Indo-US Trade Agreement concluded earlier this month has done more than strengthen economic ties—it has injected fresh momentum into a strategic partnership that had shown signs of slowing amid global turbulence. Beyond tariffs and market access, the agreement appears to have revived the broader security and technological cooperation between New Delhi and Washington, particularly in the increasingly contested domain of space.

The renewed energy in bilateral ties was visible in India’s decision to acquire six additional Boeing P-8I Poseidon long-range maritime patrol aircraft. The purchase reinforces India’s surveillance capabilities across the Indian Ocean Region at a time when maritime security concerns remain high. The P-8I fleet has already proven critical for anti-submarine warfare and long-range reconnaissance, especially amid heightened Chinese naval activity in the Indo-Pacific.

Further underscoring the warming strategic atmosphere was the visit of Admiral Samuel J. Paparo, Commander of the United States Indo-Pacific Command, to New Delhi on February 15. In a notable departure from past diplomatic restraint, Paparo publicly “applauded the tactical execution” of the Indian military during Operation Sindoor against Pakistan. His remarks, coupled with his assertion that the United States would “learn” from the conflict, signaled an unusually candid endorsement of India’s operational conduct. He described the US-India defense relationship as being on a “steeply upward trajectory.”

Amid these defense developments, the U.S. Consulate General in Chennai, with support from the U.S.-India Strategic Partnership Forum, hosted the U.S.-India Space Business Forum in Bengaluru on February 10–11. The forum marked the flagship event of the first U.S. Trade Mission to India focused exclusively on commercial space.

Bringing together 23 executives from 14 leading American space companies and more than 200 government and industry stakeholders from both countries, the mission was only the second space-focused trade delegation ever organized by the U.S. Department of Commerce—and the first of its kind to India. The initiative reinforced American leadership in commercial space innovation while highlighting the accelerating momentum of bilateral cooperation in the global space economy.

While the forum emphasized developmental goals and “cocreation” of space technologies, American participants also stressed a critical reality: space underpins national security. Any meaningful cooperation in space, whether bilateral or multilateral, inevitably carries strategic implications due to the dual-use nature of most space technologies.

Over the past two decades, outer space has evolved from a primarily scientific and socio-economic arena into what defense experts now describe as the “fifth domain of warfare,” alongside land, sea, air, and cyber. Increasingly, analysts portray space not merely as a physical expanse but as an “eighth continent” to be controlled, safeguarded, and leveraged for power projection.

Spacepower today forms the backbone of modern warfare. Satellites enable weather forecasting, precision navigation, missile launch detection, and multi-domain Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance (C4ISR). Without them, contemporary military operations would be severely constrained.

Dedicated military satellites provide 24/7 monitoring of borders and maritime zones, secure encrypted communications, and high-resolution imagery capable of tracking troop movements and identifying targets even through cloud cover. Equipped with electro-optic sensors, thermal imaging, and synthetic aperture radars, these platforms deliver unprecedented situational awareness. In effect, space-based assets serve as the “eyes and ears” of modern armed forces and act as powerful force multipliers.

However, the increasing centrality of space has led to rapid militarization. More satellites have been launched in the past five years than in the previous six decades combined. Over 100 nations and multilateral organizations now operate at least one satellite, compared to just 14 at the turn of the century. Today, more than 10,000 active satellites orbit Earth, alongside over 40,000 tracked objects, including debris.

Major powers are simultaneously developing counterspace capabilities, including anti-satellite (ASAT) missiles. While the 1967 Outer Space Treaty prohibits the placement of weapons of mass destruction in orbit, it does not ban conventional ASAT weapons. Instances of high-altitude jamming, GPS spoofing, and cyberattacks on satellite ground stations are increasingly reported, highlighting non-kinetic threats designed to “blind” adversaries without creating debris.

The risks have prompted concern from international policy circles. On February 13, the Euro-Atlantic Security Leadership Group warned that without practical measures to prevent conflict in space, the danger of nuclear catastrophe—whether deliberate or accidental—could grow significantly. The group urged major spacefaring nations, including India and China, to initiate dialogue to prevent a destabilizing arms race.

Even as some advocate cooperative governance, another school of thought argues that democratic nations must unite to counter what they see as authoritarian ambitions in space. Proponents call for closer collaboration among democratic governments and private sectors, including joint ventures in lunar exploration, asteroid resource extraction, and even “freedom of navigation operations” in space.

It is against this global backdrop that Indo-US space cooperation has acquired sharper strategic contours.

India’s Defence Space Agency has been collaborating with the United States Space Command on monitoring space assets and tracking potential threats. India participated as a full participant in the 2025 Global Sentinel exercise, transitioning from its earlier observer status.

Human spaceflight cooperation has also expanded. Indian astronauts have undergone training at NASA, and Group Captain Shubhanshu Shukla participated in Axiom Space’s Ax-4 mission to the International Space Station last year.

On the technological front, the India-US Defense Acceleration Ecosystem (INDUS-X) has supported startups working on satellite reconnaissance and secure communications. Agreements such as BECA (2020), COMCASA (2018), and the 2022 Space Situational Awareness pact have facilitated real-time intelligence sharing and access to high-end geospatial data, significantly enhancing India’s military navigation and targeting precision.

The joint NASA-ISRO Synthetic Aperture Radar (NISAR) mission further exemplifies dual-use cooperation, offering advanced Earth observation capabilities for both civilian and security applications.

India’s 2023 decision to join the Artemis Accords marked another milestone, aligning New Delhi more closely with Washington’s lunar governance framework. The same year saw the launch of the U.S.-India Initiative on Critical and Emerging Technology (iCET), later rebranded during Prime Minister Narendra Modi’s 2025 Washington visit as the U.S.-India TRUST initiative—Transforming the Relationship Utilizing Strategic Technology. TRUST emphasizes artificial intelligence, semiconductors, and critical minerals, with space cooperation as a core pillar.

Yet, despite operational alignment, differences remain. India, though granted Strategic Trade Authorisation-1 status in 2018, continues to navigate restrictions under U.S. export control regimes such as ITAR and EAR.

Moreover, India has abstained from certain U.S.-backed United Nations resolutions, including the 2022 proposal to ban debris-generating ASAT tests and the 2024 resolution on responsible space behavior. Indian policymakers cite concerns over exclusionary norm-making processes, reflecting New Delhi’s long-standing doctrine of “strategic autonomy.”

As Dimitrios Stroikos of the London School of Economics has observed, India’s space diplomacy reflects selective engagement—operationally aligned with the United States, yet cautious and ambivalent in global governance debates.

The Indo-US Trade Agreement may have catalyzed renewed momentum, but the deeper transformation lies in space cooperation. As outer space becomes more congested, contested, and critical to national security, the trajectory of Indo-US relations will increasingly be shaped above the atmosphere.

Whether this partnership ultimately fosters stability or intensifies competition will depend not only on technological collaboration but also on the willingness of both democracies to shape inclusive, credible norms for the final frontier.

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