The world faces geopolitical shifts as the US maintains economic dominance with 26% of global GDP and 44% of market capitalization despite a 4% global population share. India aims for superpower status by 2047, recognizing the US as a crucial economic partner. Historical successes of nations like Japan and China emphasize the need for robust India-US trade and tech ties. Recent PM visits to the US highlight cooperation in tech innovation, security, and digital infrastructure. The Indo-US partnership, including Quad security efforts, diaspora engagement, and climate initiatives, promises a path towards global collaboration and prosperity.
Amitabh Kant
As the world contends with geopolitical shifts, US remains the formidable economic power, having retained 26% of global GDP and 44% of global market capitalisation while housing just 4% of global population. For India to fulfil its aspirations of becoming ‘Viksit Bharat’ by 2047 and establish itself as a global superpower, robust economic engagement with US is essential.
Historically, nations that have experienced surges in economic growth, such as Japan, South Korea, Taiwan, and China, have integrated high export volumes to US into their economic strategies. If India is to replicate this success, strengthening trade and expanding technological collaboration with US must be at the forefront of its strategic endeavours.
It is in this context that the PM’s recent visit to US – covering aspects ranging from clean energy, healthcare and technology to the Indo-Pacific Economic Framework (IPEF) – is historic for several reasons.
Modi’s meetings with tech leaders during his visit are setting a bright course for India’s tech future.
By teaming up with industry giants like Nvidia and General Atomics, he has laid out an exciting vision of India as a rising hub for AI and big data analytics.
Innovation drives growth, creates jobs, enhances productivity and fosters a competitive environment. India has immense potential to be an innovative nation, and we have much to learn from US, and particularly Silicon Valley, in becoming a product nation. We must invest in applied research, pivot towards market oriented innovation, and emphasise industry-oriented skill development in higher education. Key to this is establishing research hubs linked to top universities, encouraging collaboration between academia, industry, and govt.
India’s first national security semiconductor fabrication plant, Shakti, is facilitated by the India Semiconductor Mission and a strategic tech partnership among Bharat Semi, 3rdiTech, and the US Space Force. This state-of-the-art facility will supply advanced chips to the US military, allied forces, and India’s own defence apparatus starting 2025. This will take the India US partnership into a deeper realm of long-term strategic collaboration that could redefine the security and tech landscape in the Indo-Pacific region.
For India, this ambition is fundamentally rooted in uplifting the most marginalised members of society, ensuring that progress reaches the last person in line. At the heart of India’s inclusive growth strategy is its impressive digital public infra (DPI), which has been transformative in promoting financial inclusion and delivering essential, leakage-free services. Initiatives like Aadhaar enable access to various govt programmes, ensuring that benefits reach even the most disadvantaged populations. The Unified Payments Interface (UPI) has revolutionised digital transactions, making financial services more accessible and efficient for millions.
Through its G20 presidency, India was able to advocate for a common definition of DPI and achieve consensus on a G20 framework for digital public infra, enabling nations worldwide to embrace, develop, and scale similar DPI systems. US is recognising the relevance of India’s DPI in global efforts to promote equitable access to digital tech. Cooperation in digital frameworks will facilitate trade and innovation while also enhancing global collaboration in fields such as cybersecurity, privacy standards, and financial technology. By establishing mutual frameworks and guidelines for data governance and digital economy practices, India and US can set benchmarks for other nations.
The Quadrilateral Security Dialogue, or Quad, has become a cornerstone of the two nations’ partnership, providing a platform for collaborative security efforts in a region increasingly pressured. The Delaware Quad summit reinforced the commitment of India, US, Japan, and Australia to ensure a free and open Indo Pacific, showcasing their collective will to tackle security challenges.
Modi has also redefined diaspora engagement by actively connecting with Indian communities abroad. Through initiatives that promote cultural exchanges, educational partnerships, and people-to-people interactions, the two nations can build a more empathetic relationship that transcends changing political realities and focuses instead on shared values.
As both countries embark on these collaborative endeavours, US should also refine its outreach to India in areas beyond defence and technology. For instance, investing in India’s burgeoning renewable energy sector, including green hydrogen initiatives, could align with both nations’ climate goals while yielding significant economic benefits. This aligns with the growing consensus that climate change is the defining challenge of our era – a challenge that demands collective action.
Looking ahead, the India-US partnership can inspire a newly forged network of alliances with likeminded countries. This collaboration – comprising democracies across continents – can be instrumental in addressing shared challenges from pandemics to economic stability.
The window of opportunity is wide open, and it is incumbent upon both nations to seize it. Modi’s visit represents a significant step toward harnessing this potential. The semiconductor plant at Shakti is just the beginning; it serves as a catalyst that can propel the bilateral relationship to new heights, setting a precedent for future collaborations and ultimately contributing to a more stable and prosperous international order.
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