Shares of defence stocks are celebrating on Dalal Street as US has recognised India as a "major defence partner". Stocks like Walchandnagar, Reliance Defence, Astra Microwave, NALCO, CIMMCO and Axiscade jumped 10-17 percent intraday on Wednesday.
The recognition is significant as it means that India will be now treated at par with America's closest allies for defence related trade and technology transfer.India is also all set to become member of Missile Technology Control Regime (MTCR), a key anti-proliferation grouping, as it cleared final hurdles in getting membership of the bloc that will help it access high- end missile technology.
"Noting that the US-India defence relationship can be an anchor of stability and given the increasingly strengthened cooperation in defence, the United States hereby recognises India as a major defence partner," said a joint statement issued after Prime Minister Narendra Modi held talks with US President Barack Obama.
According to the statement, under the major defence partner recognition, the US will continue to work toward facilitating technology sharing with India to a level commensurate with that of its closest allies and partners.
The White House also said that the meeting between President Obama and Prime Minister Modi resulted in progress on finalising some key defence agreements between India and the US.
The statement said the US will continue to facilitate export of goods and technologies, consistent with US law, for projects, programmes and joint ventures in support of official US-India defence cooperation.
Meanwhile, Prime Minister Narendra Modi, in his address to the American business community at annual gala of the US India Business Council (USIBC) said India would continue to open up the defence sector.
"We are exploring a simpler and transparent licensing system. The purchase of six nuclear reactors from Westinghouse which would mark a new era in the field nuclear energy in India," the PM said.
(With inputs from PTI)
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