• Two nations commit to funding projects aimed at catalysing India’s domestic clean energy supply chain for approximately $1b through the International Bank for Reconstruction and Development.

The United States and India have reached an agreement to establish a semiconductor fabrication plant; a significant step toward bolstering India’s manufacturing capabilities and enhancing bilateral relations. Following a meeting between President Joe Biden and Prime Minister Narendra Modi in Delaware, the initiative aims to produce advanced semiconductors, including infrared, gallium nitride, and silicon-carbide types.

The partnership is further underpinned by the support of the India Semiconductor Mission and a strategic technology alliance involving Bharat Semi, 3rdiTech Inc., and the US Space Force.

India’s aspiration to emerge as a global manufacturing hub is particularly timely, given its strategic geopolitical position in Asia.

 Over the past decade, Modi has consistently emphasised India’s potential as an alternative manufacturing base to China, successfully attracting a portion of the production from major corporations such as Apple and Samsung.

The shift not only enhances India’s economic landscape but also establishes it as a vital player in the global technology supply chain.

Boosting ties

India’s technology minister, Ashwini Vaishnaw, has articulated the country’s objective to develop a comprehensive chip value chain, with a goal of expanding its electronics sector to $500 billion by 2030.

The vision aligns with broader global trends seeking to decentralise manufacturing and reduce dependency on a singular country, thereby promoting resilience against supply chain disruptions.

Moreover, the partnership addresses the pressing need for clean energy technologies, as the two nations have also committed to funding projects aimed at catalysing India’s domestic clean energy supply chain for approximately $1 billion through the International Bank for Reconstruction and Development.

The aspect underlines a shared commitment to sustainable development, reinforcing the strategic nature of their collaboration.

During Prime Minister Modi’s visit to the US for the annual Quad summit, he engaged with key industry leaders, including Sundar Pichai of Google and Jensen Huang of Nvidia.

These meetings not only enhance diplomatic ties but also foster collaboration between Indian and American technology sectors. The upcoming Quad meeting in India in 2025 further exhibits the ongoing commitment to strategic partnerships in various domains.

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