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India is likely to be exempted from the CATSA (CAATSA) Act, which is imposed on countries that conduct transactions against US policies. Recently, the US House of Representatives passed a resolution exempting India from this law on Thursday. Representatives of the American Legislative Assembly believe that the bond between the two democratic countries will gradually strengthen. According to the amendments to the National Defense Authorization Act (NDAA), the House approved a resolution by Democratic Representative Ro Khanna, a member of the Indian-American, High Armed Services Act. But these amendments have to go through various stages to become law.
America hopes to stand by India to face the growing challenges from China. The representatives there believe that the India-US relationship is crucial if US interests are to be fulfilled in the Indo-Pacific region. If there is a complete exemption from CATSA, India will have the opportunity to maintain more defense and trade relations with America’s enemy countries like Russia and Iran. Under the CATSA Act, the US is imposing sanctions on countries that do business with Iran, North Korea and Russia.
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Since independence, India has been largely dependent on Russian weapons and military systems. India is dependent on Russia for the modernization of fighter jets and other defense systems in the coming days. Due to this there are border disputes with neighboring countries China and Pakistan. Amidst all this India needs to maintain its friendship with Russia. In this context, India has signed an agreement to purchase S-400 missile system, which is the best missile defense system in the world, from Russia at a cost of 5.34 billion dollars. However, several US representatives have previously warned that India will fall under US CATSA sanctions due to this move. While India ignored all this and preferred to buy S-400 from Russia.
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