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Miscellaneous 16-Jul, 2022

US house passes CAATSA waiver to India Why sanctioning New Delhi will be a disaster for IndiaUS ties

US house passes CAATSA waiver to India Why sanctioning New Delhi will be a disaster for IndiaUS ties

A waiver not granted to India won’t necessarily hurt India’s defenses on the borders as much as it would impinge on US strategic interests in the region

The US House of Representatives has passed, by voice vote, a legislative amendment that approves waiver to India against the punitive CAATSA sanctions for its purchase of the S-400 missile defence system from Russia. Authored and introduced by Indian-origin Congressman Ro Khanna, the amendment urged the Biden government to provide India with a CAASTA waiver to fight Chinese belligerence. The amendment will now move to US Senate for debate and voting. Once that is done, the president will sign it into law.

What is CAATSA?

CAATSA or Countering America’s Adversaries Through Sanctions Act is a US legislation that imposes punitive measures, by way of sanctions, for defence and strategic engagement with “American adversaries” like Iran, North Korea, and Russia. It was passed in 2017. India came under its scanner when it signed a $5 billion deal with Russia in 2018 to buy five units of the S-400 air defence missile systems. The US has already imposed sanctions on Turkey for similar purchase.

Why sanctions on India will be a recipe of disaster

A waiver not granted to India won’t necessarily hurt India’s defenses on the borders as much as it would impinge on US strategic interests in the region. Especially at the time when India-US defence relationship is at its peak.

Since 2008, the United States and India have concluded more than $20 billion in defense trade, including the transfer from the United States to India of C-130J and C-17 transport aircraft, P-8I maritime patrol aircraft, Harpoon missiles, Apache and Chinook helicopters, and M777 lightweight Howitzers. The latest deals include the procurement of 30 Predator drones worth $3 billion. 24 MH-60 Romeo helicopters by India for a reported $2.2 billion. A contract to purchase an additional six AH-64E Apache helicopters at a cost of $800 million and 24 MH-60 Romeo helicopters at a cost of $2.2 billion is also in pipeline.

A series of bilateral talks and policy adjustments from both the countries have increased US' share in India's total defence imports to 14 percent over 2015-19 as compared to 1960-2005, when it was negligible. Washington's participation is not going to dwindle or even stagnate anytime soon. India has a long term 10-year pipeline of over $223 billion defense capex. New acquisitions (short term) of USD 60 billion with various US companies to benefit in terms of long-term partnerships and collaborations.

United States designated India a “Major Defense Partner” in June 2016 – a status unique to India. Washington had also lobbied hard for India's entry into Missile Technology Control Regime (MTCR), Australia Group and Nuclear Suppliers Group (currently blocked by China).

All these developments will go in vain once India comes under CAATSA. United States had sanctioned India in 1998 after the Pokhran nuclear tests. At the time, India saw the sanctions as a reminder of why not to trust the United States and validation of the non-aligned principle that had guided Indian foreign policy for decades. Washington should not repeat the same mistake again.

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