New Delhi, Aug. 5 -- India and the US are working on a landmark deal that would open up each country's defence purchase market to the other, marking a significant step forward in their strategic relationship, two people aware of the development said.

The Reciprocal Defence Procurement Agreement (RDPA), if finalized, would give Indian companies direct access to the world's largest defence market worth $850 billion, and enable their American counterparts to tap into India's manufacturing and technology sector. This would also make India the 29th signatory to the US framework, and the only Asian signatory after Japan. An official announcement is likely within a year, but it would also depend on factors including the ongoing trade negotiatio...