The two countries signed agreements on computer chips, tech, critical minerals, space cooperation, plus defence and cooperative arrangements aimed at countering China’s influence
India and the United States announced deals on defence and key commercial sectors on Thursday as US President Joe Biden and Narendra Modi hailed a new era in bilateral ties.
While the White House rolled out the red carpet for the Indian prime minister, the two countries confirmed agreements on computer chips, critical minerals, technology, space cooperation, as well as defence sales and cooperative arrangements aimed at countering China’s global influence.
Some of the deals aim to diversify supply chains to reduce dependence on China. Others are aimed at cornering the market in advanced technologies that may feature on the battlefields of the future.
They also ended disputes at the World Trade Organization, with India removing some tariffs on US goods.
Commercial and defence tie-ups ramped up
The United States is India’s largest trading partner but the US has much larger trade dealings with China, the European Union and North American neighbours.
Biden and Modi signed off on a deal to allow General Electric to produce jet engines in India to power Indian military aircraft, through an agreement with Hindustan Aeronautics.
US Navy ships in the region will be able to stop in Indian shipyards for repairs under a maritime agreement, and India will procure US-made armed MQ-9B SeaGuardian drones.
US chipmaker Micron Technology‘s plans a $2.7 billion semiconductor testing and packaging unit, to be built in Modi’s home state of Gujarat.
The US will also make it easier for skilled Indian workers to get and renew US visas.
India also agreed to join the US-led Artemis Accords on space exploration and to work with NASA on a joint mission to the International Space Station in 2024.