India downplays US rejecting Bill

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Hours after the US rejected an important amendment in the National Defence Authorisation Act (NDAA) which aimed to recognise India as “global strategic and defence partner”, New Delhi tried to downplay the development and said it would be premature to speculate about it. The amendment would have brought India at par with NATO members and other allies in terms of American defence sales.

The NDAA is a federal law that specifies the budget and expenditures of the US defence department and determines the agencies responsible for defence. It also limits funding levels and sets out the policy framework under which money will be spent for defence purposes.

The Ministry of External Affairs said preparation of NDAA is a process different from the decision of the US Government to recognise India as a Major Defense Partner. The US in its joint statement with India during Prime Minister Narendra Modi's visit last week, had recognised India as a major defence partner and supported defence-related trade and technology transfer to India while treating it on par with America's closest allies.

"We have seen media reports about non-inclusion of an India-related amendment in the consideration of the NDAA by the US Senate. The preparation of NDAA in the US Congress involves approval of different versions in the House of Representatives and the Senate, and their reconciliation to evolve a single consensual text, which is again put to vote in both chambers. The 2017 NDAA is in the process of its formulation and it would be premature to speculate about its final content," MEA spokesperson Vikas Swarup said on Thursday.

India maintains that preparation of NDAA is a process distinct from the US Government decision to recognise India as a Major Defense Partner. "This was an executive decision and already announced in the India-US Joint Statement of June 7. A number of Senators and Congressmen have moved proposals that only seek to reinforce this decision of the US Government. It reflects the bipartisan support in the US Congress for stronger defence cooperation between India and the US," Swarup added.

However, the US Senate failed to recognise India as a "global strategic and defence partner" of the US after a key amendment necessary to modify its export control regulations could not be passed. Top Republican senator John McCain had moved an amendment to the NDAA-17 which if passed would have recognised India as a global strategic and defence partner. NDAA was passed by the Senate with an overwhelming bipartisan vote of 85-13.

Meanwhile, the US Congress has sought to tighten conditions for Coalition Support Fund (CSF) to Pakistan. It is learnt that in the House version of the 2017 NDAA, while the overall CSF authorisation to Pakistan has been kept at the same level as in 2016 ($ 900 million), the quantum of non-waivable funds (funds which can only be provided on the basis of certification by the US Administration) has been increased from $ 350 million in 2016 to $ 450 million in 2017, contingent upon a certification by the US Administration that Pakistan has taken action to significantly disrupt safe-haven and freedom of movement of  the Haqqani Network. In the Senate version of the NDAA, CSF is proposed to be replaced with Pakistan Security Enhancement Authorisation for specifically defined activities of counter-terrorism and border security with a reduced allocation of $ 800 million (a reduction of $ 100 million vis-à-vis 2016).

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