Sustaining Momentum in U.S.-India Technology Ties

Commentary by Sujai Shivakumar and Shruti Sharma

Published September 11, 2025

U.S.-India technology relations are entering a decisive phase. Over the past five years, a series of bilateral, Quad, and multilateral initiatives have transformed the relationship from broad political alignment into a network of sector-specific frameworks covering semiconductors, AI, quantum science, biotechnology, and advanced telecommunications. These channels-built through the Transforming the Relationship Utilizing Strategic Technology (TRUST) initiative, U.S.-India Initiative on Critical and Emerging Technology (iCET), the Quad's technology working groups, and targeted industrial agreements-are now producing measurable outcomes: semiconductor fabrication plants moving from approval to construction, hyperscale AI data centers in development, quantum research exchanges expanding, and biopharmaceutical supply chains being restructured for resilience.

This progress comes amid renewed trade and tariff uncertainties, but those frictions are unlikely to halt cooperation across priority sectors. For Washington, India offers trusted capacity in critical technology fields outside East Asia's geopolitical chokepoints, capacity that is increasingly central to its Indo-Pacific strategy and long-term competition with China. For New Delhi, the partnership accelerates its climb up the technology value chain, provides access to frontier research and development (R&D) ecosystems, and embeds its emerging industries in global supply chains.

The risk is that political distractions could slow this momentum. This is not the moment to dilute or stall the partnership. Years of relationship-building have created a platform capable of producing strategic and commercial payoffs for both nations, if leaders follow through on agreed priorities.

Semiconductors: From Frameworks to Factories

Semiconductors have become the anchor of U.S.-India technology cooperation, backed by high-level political commitment and rapidly materializing industrial projects. The March 2023 Memorandum of Understanding on Semiconductor Supply Chain and Innovation Partnership, signed during the U.S.-India Commercial Dialogue, aligned the CHIPS and Science Act with India's Semiconductor Mission, creating a dedicated channel for policy coordination, workforce development, and supplier integration. This was reinforced in February 2025, when Prime Minister Narendra Modi and President Donald Trump launched the TRUST initiative, naming semiconductors as a core area for building trusted and resilient supply chains. Leaders from both sides have consistently framed India as a "trusted partner" in diversifying chip manufacturing and packaging beyond East Asia's geopolitical chokepoints.

These commitments are translating into joint projects with both commercial and strategic value. The Shakti Fab, a partnership between Bharat Semi, 3rdiTech, and the U.S. Space Force, will produce infrared, gallium nitride, and silicon carbide semiconductors, critical for advanced military systems, secure telecommunications, and green energy applications. On the commercial side, Micron's nearly $3 billion assembly, testing, marking, and packaging facility in Gujarat has catalyzed an ecosystem of suppliers and training programs. Global suppliers like Applied Materials and Lam Research are also investing in R&D and workforce development hubs, embedding India deeper into global value chains. Yet, despite this momentum, policy gaps remain, including the need for reliable electric power, harmonized technical standards, and streamlined regulatory approvals, which could determine how effectively the TRUST framework translates political intent into industrial capacity.

Artificial Intelligence: Building a Trusted AI Corridor

AI is now a defining pillar of the U.S.-India technology relationship, with recent agreements focusing on AI safety benchmarks, reciprocal compute access, and trusted data-sharing frameworks. These policy commitments are being reinforced by large-scale private sector investments that materially expand AI infrastructure within a trusted democratic partner. Microsoft has pledged $3.7 billion for hyperscale data centers in Telangana, while Amazon has committed $12.7 billion in cloud infrastructure by 2030. In August 2025, reports emerged that Google plans a $6 billion, 1 gigawatt data center in Visakhapatnam, Andhra Pradesh-paired with $2 billion in renewable energy development-set to become the largest in capacity and investment in Asia. This build-out will be complemented by a sovereign AI cloud offering with Airtel Business and the India landing of Google's Blue-Raman subsea cable in Mumbai, further securing regional data connectivity.

These deployments are not just about raw capacity; they also shape where and how frontier AI can be developed and deployed. Concentrating such infrastructure in India reduces overreliance on compute facilities in authoritarian states, while aligning new AI platforms with shared governance norms on safety, transparency, and equitable access. Complementary academic and workforce programs are expanding talent mobility and enabling India to develop a sovereign AI infrastructure interoperable with U.S. systems. Initiatives such as the IIT Kanpur-NMexus partnership on advanced technologies and the establishment of an AI University in Andhra Pradesh with Nvidia are fostering shared innovation and capacity building. These efforts are reinforced by academic mobility programs like the Mehta Rice Engineering Scholars Program, which connects Indian students with U.S. universities. Together, these programs strengthen India's domestic AI ecosystem while ensuring alignment with U.S. technological standards and interoperability. Together, these developments are creating a trusted AI corridor, pairing India's engineering talent and digital public infrastructure experience with U.S. frontier model development and hyperscale capabilities.

Quantum Technology: Dialogue and Deployment

U.S.-India collaboration in quantum science has moved from high-level statements to concrete institutional and technical linkages. Joint programs now span quantum communication, post-quantum cryptography, and secure migration strategies, areas aligned with India's National Quantum Mission and the United States' push for trusted partners in next-generation computing.

Institutional ties are deepening alongside these exchanges. India's Centre for Development of Advanced Computing has joined the U.S. Accelerated Data Analytics and Computing Institute, creating a multilateral channel for technical information exchange and expanding cooperation with leading research centers across the United States, Switzerland, Japan, Germany, Finland, Australia, France, and Sweden. This strengthens connectivity between scientific communities and supports joint advances in advanced computing and data-intensive research, a priority for both countries as they seek to build resilient innovation ecosystems..

On the domestic front, India is accelerating quantum investments under its ₹6,000 crore ($730 million) National Quantum Mission. Karnataka has launched a ₹1,000 crore state-level program to establish itself as Asia's leading quantum hub, anchored by a Quantum Hardware Park, a FabLine for processor fabrication, and a venture fund for start-ups. The roadmap targets a 1,000-qubit processor and aims to create a $20 billion quantum economy by 2035 with applications in defense, healthcare, and cybersecurity. Andhra Pradesh has announced plans for a "Quantum Valley" in Amaravati, integrated with its DeepTech Research Park and developed in partnership with IIT Madras, Tata Consultancy Services, and International Business Machines Corporation. These state-led efforts, combined with U.S.-India joint training and research programs, are creating multiple entry points for U.S. industry and research institutions to integrate with India's rapidly expanding quantum ecosystem.

Biotechnology and Biopharma: Securing the Life Sciences Supply Chain

U.S.-India cooperation in biotechnology has expanded into a structured supply chain resilience effort. The Bio-5 Consortium, bringing together the United States, India, South Korea, Japan, and the European Commission, targets vulnerabilities in the production of active pharmaceutical ingredients and key starting materials by fostering multisource supply chains. Parallel to this, the first-ever National Science Foundation-India Department of Biotechnology joint funding call is underwriting collaborative R&D aimed at translating early-stage innovation into commercial products. The launch of the Bio-X Initiative further links research and industrial capacity in molecular communication and bio-nano technologies, creating a platform for advanced biomanufacturing cooperation. Together, these efforts strengthen both countries' ability to ensure security of supply while accelerating biotechnology innovation in line with shared regulatory and safety norms.

Telecom and 6G: Building a Secure, Interoperable Next-Gen Network

In advanced telecommunications, the United States and India are aligning industrial ecosystems for Open RAN deployments at scale. The Bharat 6G Alliance and the U.S. Next G Alliance have agreed to coordinate R&D, field trials, and standards-setting, ensuring interoperability and supply chain trust in emerging 5G and 6G systems. Qualcomm's investment, in partnership with Bharti Airtel and Mavenir, is enabling large-scale testing of an Open Radio Access Network stack within India, demonstrating the feasibility of producing cost-effective, secure network components outside traditional East Asian hubs. This collaboration complements joint working groups on 6G-related technologies such as network sensing, intelligent reflecting surfaces, and human-centric cognition-based wireless access frameworks.

Commitment and Strategic Payoffs for Both Nations

The U.S.-India technology partnership has moved from aspirational dialogue to a portfolio of concrete joint initiatives in semiconductors, AI, quantum, biotechnology, and advanced telecommunications. While India is not yet a front-runner in frontier manufacturing or fundamental R&D, targeted policies such as the India Semiconductor Mission, the National Quantum Mission, and AI skilling frameworks mark the beginning of a deliberate climb up the value chain. Years of relationship-building through the Quad's Critical and Emerging Technology Working Group, bilateral mechanisms like the U.S.-India Commercial Dialogue and the U.S.-India Strategic Trade Dialogue, and multilateral cooperation via the Global Partnership on Artificial Intelligence and the International Telecommunication Union have created a political and institutional foundation for joint technology projects. These forums have not only produced sectoral agreements but also embedded habits of cooperation between industry, academia, and government agencies on both sides. That architecture is now being stress-tested as the partnership moves into more sensitive domains like quantum communications, post-quantum cryptography, and defense-grade semiconductor manufacturing.

For Washington, this cooperation aligns squarely with its Indo-Pacific strategy. India's scale, democratic governance, and geographic position make it an indispensable counterweight to China's technology ambitions over the long term. Diversifying critical supply chains, whether in defense-grade semiconductors or pharmaceutical precursors, through India reduces single-point vulnerabilities in East Asia. For New Delhi, the partnership offers accelerated access to frontier technologies, integration into global R&D networks, and the chance to shift from a services-led digital economy to an innovation-led industrial base. Importantly, these bilateral efforts also fit within the broader Quad framework: Japan's original equipment manufacturers and Australia's critical minerals capacity provide complementary strengths, enabling the four partners to align investments, standards, and supply chains in ways that reinforce trusted technology ecosystems across the Indo-Pacific.

As the United States seeks to lead and set standards for global technology governance, India offers a critical partner with the scale, talent, and market potential to shape those standards alongside it. The challenge will be to sustain execution, protecting high-value technology channels from trade disputes, embedding industry deeply into bilateral frameworks, and ensuring joint investments mature into export-ready, commercially viable capacity. This will also require India to continue investing in advanced capabilities, address domestic infrastructure and regulatory challenges, and align its industrial policies with global market demands. Meeting this test will demand sustained political commitment and policy discipline on both sides to translate strategic alignment into lasting global influence.

Looking ahead, India's role as host of the 2026 AI Impact Summit will test its convening power as a trusted voice for the Global South. The summit's emphasis on democratization, inclusion, and measurable impact could mark an important step in aligning India's domestic initiatives with evolving global frameworks. Yet much will depend on whether Washington and New Delhi can overcome inevitable bumps in the partnership and collaborate effectively on an issue increasingly central to the international order.

Sujai Shivakumar is the director and senior fellow of Renewing American Innovation at the Center for Strategic and International Studies (CSIS) in Washington, D.C. Shruti Sharma is a research intern with Renewing American Innovation at CSIS.

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