Defence diplomacy helps build trust and confidence between nations and facilitates cooperation at political and economic level. This is evident from the growing US-India strategic relationship. Since the end of the Cold War, the US-India relationship has been evolving and “reaching new heights”. In this budding relationship, the most visible manifestation is cooperation in the sphere of defence. It is quite apparent from the increasing frequency and scope of bilateral military exercises, seminars, personnel exchanges, high level and unit visits, officer and unit exchanges, as well as the defence technology sales. During President Barack Obama’s visit to India in November 2010, both the countries signed about 20 trade deals worth $10 billion which President Obama believed would not only create fifty thousand jobs in the US but would also advance US-India relations. However, given the huge potential that the Indian defence market holds, the common security challenges that the two countries face and the common values, interests and visions that they share, defence diplomacy can play an important role in further strengthening this burgeoning strategic relationship.