U.S. and India set to announce flurry of deals on defense, chips, AI

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U.S. and India set to announce flurry of deals on defense, chips, AI

U.S. President Joe Biden and First Lady Jill Biden, left, greet Indian Prime Minister Narendra Modi upon arrival at the South Portico of the White House in Washington, DC, June 21, 2023.

Mandel Yan | AFP | Getty Images

The United States and India are set to announce a raft of defense and technology cooperation on Thursday during Prime Minister Narendra Modi’s state visit, U.S. officials said.

Top administration officials discussed a wide range of deals in briefings with reporters, from deepening defense and military ties to strengthening technology cooperation and diversifying supply chains.

“The nature, depth and breadth of what we have delivered to this end is unprecedented,” one official said.

India has overtaken China to become the most populous country in the world and will become the third largest economy in the next few years.

“India will be an important strategic partner for the United States in the coming decades,” one official said.

“There is no more important partner than India now and in the future,” the person added, adding that the bilateral partnership is “deeper and broader than ever before”.

“We now have an instinctive focus on each other and working together to preserve a free and open Indo-Pacific,” the person said. “Our nation will shape the future and work to build an open, prosperous, secure, stable and resilient world. ”

Modi is on his first state visit to the United States, where he met with President Joe Biden and first lady Jill Biden, as well as people including Tesla CEO Elon Musk and Bridgewater Associates founder Ray Well-known business leaders including Dalio.

The Indian leader will join Biden on Thursday for a news conference, where the two leaders will answer questions from reporters, officials said.according to ReutersModi has not held a press conference in India since becoming prime minister in 2014, which is extremely rare.

military cooperation

On defense, officials highlighted three announcements.

India and the US are expected to announce an agreement to jointly produce the F414 jet engine in India, involving General Electric and Hindustan Aeronautics.

They are also expected to announce a major ship repair deal that will save the US military cost and time – enabling US Navy ships to be serviced and repaired at Indian shipyards.

Third, the so-called Indo-US Defense Acceleration Ecosystem aims to integrate India’s growing private sector defense industry with the US defense sector.

U.S. President Joe Biden greets Indian Prime Minister Narendra Modi upon arrival at the South Portico of the White House in Washington, DC, June 21, 2023.

Mandel Yan | AFP | Getty Images

The military agreement between the two countries will help India secure its borders with China and Pakistan and is expected to reduce the country’s heavy reliance on Russian military supplies.

“India is actively participating in diversifying away from Russia’s military equipment … It is not just the United States that is involved in this diversification effort. Our allies and partners in France, the United Kingdom and Israel, and elsewhere are also actively supporting efforts to more broadly secure India’s national defense capabilities,” the senior administration official said.

India is also widely expected to buy the MQ-9B SeaGuardian drone, a deal that has long been stymied by bureaucracy.

“Honestly, I think Indians are surprised and excited by the steps we have taken to remove bureaucratic hurdles to make this happen. So I think we fully recognize the need to follow through,” a senior government official said.

Technical cooperation

Modi’s visit comes as the US is adopting a “support a friend” strategy to distance itself from China and tap the potential of other countries in the region.

On the technology front, U.S. and Indian companies will collaborate to build semiconductor facilities to facilitate supply chain diversification, officials said.

The two countries are also expected to announce agreements to strengthen supply chains for critical minerals, boost telecommunications capabilities and work on artificial intelligence development.

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Applied Materials will also announce the establishment of a new semiconductor commercialization and innovation center in India, officials said.

“Now is the time for India to drive incredible growth and we very much look forward to working with the Prime Minister and everyone in India to achieve great success together,” Applied Materials Chief Executive Gary Dixon said in a video interview released by Modi on Wednesday YouTube page.

“Many companies around the world have seen the trust and tremendous talent in India. I am convinced this is the time for India to shine,” Dixon said.

The United States also faces stiff competition from China in the space race.

NASA and the Indian Space Research Organization will collaborate this year to develop a cooperative framework for human spaceflight.

Attract more Indian talent

U.S.-India ties 'no longer transactional', think tank says

The State Department could also change how temporary work visas are renewed, senior administration officials said ahead of Thursday’s joint statement.

“The personnel level should not be underestimated,” one official said. “When we launched the Quad Education Initiative last year, we were inundated with good Indian candidates.”

“The diaspora community that connects India to the United States is engaged, passionately engaged. So I would just say there are a lot of factors … driving that relationship forward.”

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