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The US has designated India as the Strategic Trade Authorisation-1 country, which eases restrictions on export of high-tech items.
The revised status is the same as the one accorded by the US to its North Atlantic Treaty Organization allies.
"STA-1 provides India greater supply chain efficiency, both for defence and for other high-tech products. This is a very important change in India’s status in the export control regime," said US Commerce Secretary Wilbur Ross.
The Indian foreign ministry welcomed this move.