In October 2018, India signed a 5.43 billion USD deal with Russia for the S-400 Triumf missile system despite objections from the US and the threat of sanctions under CAATSA. India is likely to begin taking delivery of the S-400 missile defence system from Russia in November 2021.
Context
The US lawmakers continue to voice their support for a sanctions waiver from Countering America’s Adversaries Through Sanctions Act (CAATSA) for India.
- In October 2018, India signed a 5.43 billion USD deal with Russia for the S-400 Triumf missile system despite objections from the US and the threat of sanctions under CAATSA. India is likely to begin taking delivery of the S-400 missile defence system from Russia in November 2021.
About the US’ CAATSA
- US law: It is a US federal law enacted in 2017.
- The law gives the US President the power to impose at least five of the 12 sanctions on people engaged in a “significant transaction” with Russian defence and intelligence sectors.
- Its "ultimate goal" is to prevent the flow of revenue to the Russian government.
- Besides Russia, CAATSA aims to impose sanctions on Iran and North Korea.
- Types of Sanctions: CAATSA contains 12 types of sanctions. There are only two sanctions that could affect India-Russia relations or India-US relations.
- Prohibition of banking transactions: The first of these, which is likely to affect India-Russia relations, is the "Prohibition of banking transactions".
- This will mean the difficulty for India in making payments in US Dollars to Russia for the purchase of S-400 systems.
- Export Sanctions: The second penalty will have far-reaching consequences for India-US relations.
- This is a “export penalty” that has the potential to completely undermine India-US Strategic and Defense ties, as it will ban licenses, as well as exports, of any US-controlled substances.
- Waiver Criteria: The US President was given authority in 2018 to withdraw the CAATSA sanctions on a case-by-case basis.
Russian S-400 Triumf Missile System
- It is a mobile, Surface-to-Air Missile (SAM) system designed by Russia.
- It is the world's most dangerous Modern Long-Range SAM (MLR SAM), which is widely considered ahead of the US advanced Terminal High Altitude Area Defense (THAAD) program.
- It includes multi-tasking radar, autonomous detection and targeting systems, anti-aircraft systems, launchers, and command and control center.
- It is capable of firing three types of missiles to create a layered defense.
- The system can engage all types of aerial targets including aircraft, unmanned aerial vehicles (UAV) and ballistic and cruise missiles within a distance of 400km, at an altitude of up to 30km.
- The system can track 100 airborne targets and engage six of them simultaneously.
Significance for India
- From India's point of view, China is also buying the system. In 2015, China signed an agreement with Russia to buy six battalions for the system. Its delivery started in January 2018.
- China's acquisition of the S-400 system is viewed as a "game changer" in the region. However, its effectiveness against India is limited.
- India's acquisition is important to counter attack in a two-front war, which includes even the most advanced US F-35 fighter jets.
India-US Defense Cooperation
- Both countries signed the ‘New Framework for India-US defence relations’ in 2005, which was further updated for 10 years in 2015.
- The USA recognised India as a major Defense partner in 2016.
- The designation allows India to purchase the most advanced and sophisticated technology from America at par with that of the US's closest allies and partners.
- India and the US have signed important defence agreements over the past few years and have also formalised a four-nation alliance of QUAD (India, US, Japan and Australia).
Defence Exercises
- Malabar exercise (Quadrilateral naval exercise of India, USA, Japan and Australia)
- Yudh Abhyas (Army); Cope India (Air Force)
- Vajra Prahar (Special Forces)
