India-Philippines Brahmos Deal – UPSC GS2

India-Philippines has signed a deal under which India will supply Brahmos missiles.

It would boost the export potential of India.

It would help in attaining the target of $5 billion in defence exports by 2025. More orders are expected to come from countries like Vietnam, Indonesia, the United Arab Emirates, Argentina, etc.

It would elevate India’s stature as a responsible regional superpower.

This would also boost India’s economic, soft, and hard power profile in the Indo-Pacific region.

It would be helpful in protecting geopolitical and strategic interests, especially in the South China Sea. The sea has been a zone of frequent conflict between China and the Philippines.

The deal would make the Philippines the first country to buy BrahMos. Thereby it will strengthen bilateral relations in the defence sphere.

It would act as a deterrent to China’s aggressive stance in the Indo-Pacific region.

Further, other vulnerable countries of the region would come forward and induct Brahmos into their defence arsenal. This would protect their sovereignty and territory in the region.

It may attract sanctions from the US under the Countering America’s Adversaries Through Sanctions Act (CAATSA).

The act aims to sanction individuals and entities who engage in a “significant transaction” with a listed entity under CAATSA.

Russia’s NPO Mashinostroyenia is one of the listed Russian entities, which is a co-manufacturer of Brahmos. That is why a threat of sanctions looms over the Philippines and other countries. Further, the US has maintained ambiguity over the Brahmos deal.

Turkey and China have been penalized under CAATSA for purchasing the S-400 Triumf air defense systems from Russia.

The cost of the Brahmos package comes around 2000 crores. This huge cost has discouraged purchase orders from many willing countries especially post the pandemic era.

India has offered a $100 million line of credit to the Philippines that has enabled it to purchase Brahmos with minimum components.

India should engage in proactive talks with the US in order to obtain a waiver for the Brahmos deal. This seems possible as the deal would help contain China in the Indo-Pacific.

India should offer a rational line of credit to potential buyers to give them flexibility in buying the missile.