India, US Sign 10-Year Defence Pact: Is a Bilateral Trade Deal Next?

Amid reports that India and the United States are close to finalising a long-pending trade deal, the two nations signed a 10-year Defence Framework Agreement at Kuala Lumpur in Malaysia on Friday (October 31).

India’s Defence Minister Rajnath Singh and US Secretary of War Pete Hegseth signed the agreement in Malaysia, on the sidelines of the ASEAN Defence Ministers’ Meeting-Plus (ADMM-Plus).

The development comes at a time when trade tensions between New Delhi and Washington have intensified, with the US recently imposing 50% tariffs on Indian goods — half as retaliatory measures, and the other half aimed at discouraging India’s continued purchase of Russian oil.

Following the signing, Hegseth posted on X (formerly Twitter), saying, “I just met with Rajnath Singh to sign a 10-year U.S.-India Defense Framework. This advances our defence partnership — a cornerstone for regional stability and deterrence. We're enhancing coordination, information sharing, and technology cooperation. Our defence ties have never been stronger.”

Echoing his views, Rajnath Singh said, “India-US relations will further strengthen. We have spoken on several occasions, and I am delighted to meet you in person on the sidelines of ADMM-Plus. With the signing of this Defence Framework, I believe a new chapter begins in our partnership.”

Calling the 10-year framework “ambitious,” Hegseth thanked Singh for deepening cooperation between the two countries, noting that the agreement reflects the shared commitment to a free, open, and secure Indo-Pacific.

“This is one of the most consequential US-India partnerships in the world. Our strategic alignment rests on shared interests, mutual trust, and a commitment to regional prosperity,” he said.

The agreement provides a roadmap for expanded military collaboration, focusing on intelligence sharing, joint exercises, and defence technology development. Hegseth added that it underscores America’s long-term commitment to shared security with India.

However, the deal comes amid persistent friction between the two nations over tariffs and India’s trade with Russia. Washington has repeatedly criticised New Delhi’s oil imports from Moscow, alleging they indirectly support Russia’s war in Ukraine — a claim India denies, arguing that its energy trade helped stabilise global markets.

Former President Donald Trump has also accused India of imposing high duties on American goods. A major sticking point in the proposed trade deal has been India’s refusal to open its agriculture sector to US products. Prime Minister Narendra Modi has maintained that the government is committed to protecting farmers’ interests, even if it means facing higher tariffs on Indian exports.

By signing the 10-year Defence Framework, India appears to be reinforcing its strategic alignment with the US — potentially as a balancing move amid ongoing trade friction and shifting global alliances.