What the US government is insinuating needs to be considered very seriously.  Needless to say that India and USA have a common enemy - China.  China's increasing economic and military might is evincing an hegemonic attitude in South Asian region.  China has declared openly not to allow any foreign ships in the South East Asian sea area.  Hence, all the neighboring countries - Vietnam, Philippines,Indonesia etc. are feeling deprived of not being able to explore the sea bed for natural resources.  China believes in 'might is right' theory and flexing its muscle to achieve its long term goal to expand its territorial appetite.  India should know this too well because China has objected to the drilling contract Indian company was awarded in that area.  Yes, India has come a long way from 1962 scenario as respects to strengthening its defenses, but it still is no match to the Chinese military establishment.  HENCE, A NEED TO HAVE A STRONG DEFENSE AGREEMENT WITH A SUPER POWER.