India-US tech ties can reshape global affairs

Meanwhile, India’s digital transformation has undergone remarkable acceleration in recent years; the country has the fastest-growing digital economy, with the third largest start-up ecosystem. We are also home to an ever-increasing cohort of a young and technically skilled workforce that could cater to domestic and global needs. However, we lack key strands in many next-generation technology sectors. Over time, these emerging areas have the potential to disrupt even the industries where we have built strengths. The US could be an ideal partner to provide the technology, and capital required to develop these vital areas. Digital products and solutions thus co-created could enhance our indigenous capacity, cater to the global markets, and allow us to fit better into global supply chains.

Against this backdrop, President Joe Biden and PM Modi in 2022 conceptualised the Initiative on Critical and Emerging Technologies (iCET). Major technology cooperation agreements during the PM’s State visit all fit under this framework. For instance, American chipmaker Micron Technology proposed to set up a $2.75 billion testing and assembling centre in India. Micron chips were recently banned by China from being used by critical infrastructure operators, seen as a retaliation against the new US export controls that prohibits the sale of advanced technology to China. Micron’s new project could meet American objectives of de-risking from China, diversifying supply chains, and making fresh inroads into our fast-growing market. US semiconductor toolmaker Applied Materials has also agreed to invest $ 400 million and set up a state-of-the-art engineering centre. These initiatives will bolster our know-how to make chips that are ubiquitous with every piece of hardware.

The defence sector inked noteworthy agreements, including the understanding between GE and HAL to transfer technology of the F-414 jet engines, which will be manufactured in India. Described as the crown jewel of the US defence industry, the engines will be integrated with our Tejas MK 2 Light Combat Aircrafts. These engines could also be modified to be used in our indigenous 5th-generation Advanced Medium Combat Aircraft (AMCA) program. The US also offered us the MQ 9 Reaper drones with surveillance, submarine detection and combat capability, with some components that could be made in India. INDUS-X, an accelerator programme for encouraging mutually beneficial defence innovations was launched. Willingness to share closely guarded technologies with India is a sign of growing trust as well as strategic convergence. An India that could be a security and stability provider in the immediate Indian Ocean neighbourhood fits the American strategic calculus.

India also joined the US-led Minerals Security Partnership (MSP). This was established to accelerate the development of diverse and sustainable critical minerals supply chains globally. Building blocks of high technology, this segment is dominated by China. Epsilon Carbon Limited would invest $650 million in a synthetic graphite anode processing facility, the largest Indian investment in the US electric vehicle battery industry. A White House factsheet on the visit mentioned new joint coordination mechanisms on AI and quantum computing. An Emerging Renewable Energy Technologies Action platform was announced to accelerate cooperation in green hydrogen and other renewable energy sources. India has ongoing national missions in these fields. Joint working groups were created on advanced communications, focussing on standards cooperation, and the building of an Open Radio Access Network (RAN) in 5G / 6G. India inked the Artemis Accords for space exploration collaborations, and NASA and ISRO have agreed to work on human spaceflight cooperation. The knowledge base of India’s scientific and innovator communities in these emerging transformative areas could enhance from these initiatives.

The US and India continue to have some diverging views including regarding our strategic partnership with Russia. However, recent statements and actions from the US administration show a growing understanding of the Indian worldview, and the realisation that multilateralism and multi-alignment based on common interests are inevitable in an emerging multipolar world. A joint statement issued after the State visit emphasised that technology would play a defining role in deepening the partnerships between the two countries. With China threatening to take an unassailable lead in this sector, it would be in the best interests of both democracies to collaborate and draw on complementary strengths, so that they effectively compete in critical and emerging technologies that can drive economies, societies and security frameworks of our future.

Anil K Antony is a policy commentator, graduate of Stanford University, and a member of the BJP. The views expressed are personal.