The agreement is needed for important defence purchases
This will avoid fresh negotiations and signing of documents each time India wants bare minimum requirements for purchases.
The agreement is currently needed for acquisitions such as the Long Range Maritime Reconnaissance Aircraft for the Indian Navy and other defence procurement.
As per the U.S. laws, all foreign military sales are guided by the Golden Sentry programme that is governed by its Department of Defence while the Blue Lantern programme is governed by the Department of State.
This is to ensure that the product sold to a country is being used for the stated purpose.
http://www.hindu.com/2009/05/25/stories/2009052559421400.htm
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