Is the US turning India into its logistic hub?

Reports quoting the White House said the US Navy is close to finalising separate deals with two other shipbuilders in Mumbai and Goa.

The United States’ recent decision to conclude a Master Ship Repair Agreement with the Larsen & Toubro (L&T) shipyard is an attempt by the US to turn India into a hub for resupplying and maintenance of its naval vessels in South Asia.

Reports quoting the White House said the US Navy is close to finalising separate deals with two other shipbuilders in Mumbai and Goa.

However, some see the developments with concern and fear this is America’s plan to draw India closer to its military.

The proposed Indian hub is part of the US military’s search for more such facilities that will allow it to quickly handle resupply activities and repair in the Indo-Pacific and maintain its deterrence against the growing Chinese presence.

The agreement with L&T will allow the repair of US naval warships in its shipyard in Kattupalli near Chennai.

Reports say the first warship to be repaired is USNS Salvor, which has already arrived at the shipyard for repair and is scheduled to return in November.

Other shipyards in India can also be used for similar work after the US firms up agreements with them.

Under the partnership, the US will support India in developing the necessary infrastructure for resupply, repair, and maintenance of ships and aircraft.

Japan and Singapore at present serve as key naval hubs for the US in Asia.

According to the Pentagon press secretary, Air Force Brig. Gen Pat Ryder, much more would unfold in future, but the main aim for now is to make India a logistic hub for the US and its partners in the Indo-Pacific.

The China factor

Growing Indo-US defence ties are also being propelled by China’s aggressive rise in the region.

The joint statement issued at the end of the summit between Prime Minister Narendra Modi and the US President Joe Biden in the US in June said “The US-India major Defence Partnership has emerged as a pillar of global peace and security.”

Some other recent developments indicate India’s tough attitude towards China. Indian and Chinese troops have been locked in a stand-off at eastern Ladakh along the Line of Actual Control (LAC) since May 2020.

Despite several rounds of talks, China has been reluctant to withdraw from several positions it occupied, violating agreements and protocols to maintain the status quo in the area.

India has maintained that normal relations will not be restored unless China withdraws from these positions.

India has also moved closer to Taiwan in recent months. Recently, it allowed Taiwan to open its trade and cultural centre in Mumbai — its third office in India after Delhi and Chennai.

India also broke its earlier ambiguity on a maritime dispute between the Philippines and China, expressing support for the 2016 arbitration ruling at The Hague, which rejected Beijing’s claims in the South China Sea.

In addition, India also allowed the visiting US Under-Secretary and Special Coordinator, Uzra Zeya, on Sunday to meet the Dalai Lama at his headquarters in Dharamshala — a decision which was a major departure from its past stand.

China doesn’t regard the Dalai Lama as a revered spiritual and cultural leader. It accuses him of indulging in anti-Chinese activities from Indian soil and has often urged Delhi not to encourage his meeting with visiting political leaders or officials.

On the other hand, US experts see the proposed hub in India as a significant development as securing “a maintenance and repair and logistic hub” in South Asia would allow the US Navy the “much-needed” flexibility in the vast Ocean region.

The US Navy currently operates from Diego Garcia and Western Australia to maintain its vigil over the Indian Ocean.

The Pentagon fears that China, which currently has about 355 ships and submarines, would continue to have an edge over the US navy if American vessels cannot spend more time at sea.

The risk of falling behind China in terms of naval capabilities and weakening deterrence has prompted the US to seek more hubs in the Indian Ocean and the Indo-Pacific region.

According to financial advisory firm KPMG, India is likely to spend about US$ 130 billion on defence procurement in the next five to seven years.  Since this will create massive opportunities for domestic industry given the government’s push for indigenisation, there will be ample opportunity for American companies entering the Indian defence market.

“The potential benefit to the Indian industrial base would be in the form of upgrading domestic infrastructure, capacity addition and research and development activities, ” KPMG said.

Strategic autonomy

However, India has so far maintained strategic autonomy and continues to build strong ties with Russia, its traditional strategic partner and main supplier of weapons.

But some Russian experts in the Indian establishment worry that the US is drawing India closer to its military.

“Buying arms from America is different from allowing a naval hub to the US,” says a former Indian diplomat.

He fears that soon the US will try to convince India to allow a naval base for the American navy. “This is not only a concern for China but also for Russia”, the diplomat added.

In September, India will chair the G20 summit in New Delhi where the president of America will be present along with his Chinese and Russian counterparts.

How India maintains close ties with both Washington and Moscow will be watched closely and with a lot of interest by strategists around the world.