Much will depend on the incoming Donald Trump administration whose foreign policy priorities remain undefined. But, experts believe that broad contours of India-US relations will remain unchanged even during the Trump administration, as both sides have invested too much in the relationship.
A joint statement by India and the US after a meeting between their Defense Ministers on Thursday termed the designation "unique to India'' as it "institutionalizes the progress made to facilitate defense trade and technology-sharing with India to a level at par with that of the United States' closest allies and partners, and ensures enduring cooperation into the future."
"It would be mutually beneficial, although India would look for co-production in strategic defense sectors with US," Sharma told Sputnik.
The designation is a major strategic boost for New Delhi, says Stuti Bhatnagar, a doctoral candidate at the University of Adelaide, but at the same time cautions that the key to its success lies with the upcoming Donald Trump administration.
"It will help India consolidate its status as a regional and global player. New Delhi may even use it as a strategic leverage against China and get defence contracts in Afghanistan and other places. But we must not forget that it has been pushed by an outgoing administration in the US," Bhatnagar told Sputnik.
Even the Trump administration may not deviate from the current state of India-US ties as the regimes on both sides have similar strategic and threat perceptions, says Sharma. In addition, the Narendra Modi government has aggressively lobbied for improved India-US ties.
"Despite all concerns there is an influential Indian lobbying which had been reactivated during Modi's US visit. Also, BJP-Republican, Bush-Vajapayee, Trump-Modi administrations define security threat environment in similar ways," he added.
India is not a treaty partner of the US like Japan, South Korea, Australia or other NATO countries and Thursday's joint statement is short on specific details of the benefits that accrue to India under the designation. This is probably because most of the clauses will have to approved and implemented by the Trump administration.
But reports in the Indian media are optimistic about a more relaxed and liberal regime for buying US weapons systems and strategic technology, something that India has enjoyed with Moscow over 50 years, including in the Soviet era.