US President Donald Trump has signed into law almost $1 trillion per year defense spending legislation. He has also implemented one of his biggest security bills in his second term in office. Though this legislation contains provisions for assistance to Ukraine and prevents a sudden drawdown of US military numbers in Europe, there is also focus on India’s role in hosting the US Indo-Pacific strategy through the Quad.
This act, officially named the National Defense Authorization Act for Fiscal Year 2026, allows spending at a record high of $901 billion on defense, $8 billion greater than what the administration had originally requested.
Similar to all other legislative approvals, Trump signed the NDAA without a public ceremony, despite this bill involving areas that Trump has previously resisted, most notably European security guarantees and Ukraine programs.
Some of the key provisions
Military assistance of $800 million to Ukraine over two years under the Ukraine Security Assistance Initiative
It prevents the U.S. from reducing troop levels in Europe below 76,000.
Continued U.S. leadership role of the Supreme Allied Command within NATO
However, despite these provisions, the White House stated that Trump supported the Bill because it “codifies major Executive priorities” like funding for the Golden Dome missile defense system, as well as canceling Defence Department programs that “promote diversity, equity, and inclusion.”
But for India, some of the most important elements appear as Indo-Pacific provisions in the Act.
The NDAA not only advocates for increased US engagement in India but also positions New Delhi alongside Tokyo and Canberra as “frontline nations” in resisting the increased reach of China. The law reconfirms Congress’ support for the Quadrilateral Security Dialogue, also known as the Quad, and lists joint collaborations on defense exercises, defense trade, maritime security, and humanitarian assistance.
The Act also proposes the creation of the new “Indo-Pacific defense industrial security initiative with the intention of integrating the supply chains and the defense industry production of the countries that are considered trusted partners,” with this including India, Japan, Australia, South Korea, and the Philippines.
India is now explicitly factored into U.S. defence strategies, and into diplomacy too.
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Washington view
Washington views India as a “balancing factor” to China, as opposed to a “tactical actor.” And defence industry cooperation, and not only arms sales, is increasingly at the heart of this relationship.
Specifically, the Act also proposes a joint assessment by the U.S. and India regarding nuclear liability laws, which brings back the important, albeit very sensitive, topic that has long impeded civil nuclear cooperation between the two nations, dating back to the nuclear deal signed in 2008.
The need for yearly reporting for five years indicates the constant American pressure for, and opportunity of, compliance with the international standard.
What’s next
The defence and foreign relations ministries of India need to proactively respond to this proposed initiative regarding defence industries.
New Delhi also faces increased diplomatic pressure concerning reforms in nuclear liability, which is a politically sensitive but highly valued domain. The probable course for the Quad would be to move away from a dialogue mechanism that is exclusive, or even from logistics and production sharing actions, to actually achieve a high level of interoperation. It is clear that as the Quad’s strategies in the Indo-Pacific develop further, the message that is abundantly clear from the NDAA is that India has gone from being on the fringes of American strategic thinking on security to being at the center.
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