In what would greatly elevate defence ties between the two countries, India and the US are inching close to signing the Industrial Security Annex (ISA), which will unlock access to key US developed defence technologies for India, reports The Economic Times.

The draft of the agreement has already been circulated and is expected to get a cabinet clearance in the coming weeks, paving the way for the signing of the annex. The agreement will aid the transfer of advanced high end technologies by a US based firm to its Indian partners.

Once operational, US companies will be able to transfer technologies through the government route whereby they will be submitting a documentation to the US government which will thereafter be taking the matter forward through diplomatic channels.

It should be noted that the ISA will be crucial for the US based-defence equipment and weapons manufacturers for participating in all upcoming Make in India projects related to defence procurement for the Indian Armed Forces, like the 110 fighter jet deal for the Indian Air Force and the deal for 111 Naval Utility Helicopters, which are both being realised under the Strategic Partnership (SP) model.