“When India grows, the whole world grows”. This was a resonating quote from PM Modi’s US Congress address during his historic three-day state visit. Understandably so – in his maiden trip, back in 2015, India entered the top 10 league. Fast forward to 2023, we are well on course to become the 3rd largest economy by the turn of this decade.
The sheer pace and scale of India’s growth story becomes even more symbolic given the unprecedented global transformation and emergence of a new world order – which even today many countries continue to grapple with.
Strong ambitions often require like-minded partners to achieve. India found that in the US, a relationship which has stood the test of time, geopolitics, and economics to emerge more vibrant and resilient. This dynamic needs little substantiating with both countries at the cusp of a closer, more productive relationship than at any point in the past. As rightly put, two great nations, two great democracies, two great powers, and most importantly two great friends, this is a unique relationship that spans from the earth to space, touching every human enterprise in between.
Keeping geopolitics aside, this was a historic visit – perhaps just the right time for the US & India to reinforce their partnership in this new dynamic and come out stronger and bolder across emerging areas. Several takeaways, however, in my opinion, the ones that stand out and will drive the next paradigm of growth in this relationship are:
Joint ecosystems backed by technology
Technology is the foundation of this partnership and with iCET we will see more strategic collaboration in sectors like space, biotechnology, semiconductors, telecom, artificial intelligence, quantum computing, defence, and supply chains. This will help develop an open environment where both countries can leverage mutual strengths and capabilities to foster an enabling deep tech ecosystem across areas of strategic and national interest.
India, with all the tailwinds offers tremendous opportunities for deep tech investments as it takes its place among the leading industrial economies. Greater co-production and technology sharing opportunities will incentivise the private sector to bring in the required delta in the relationship.
‘CHIP’ping in for a greater good
India has been proactive in advancing the electronics and semiconductor ecosystem in the country. Investor-friendly policy measures and a competitive tax regime have grabbed the eyeballs of global players keen on diversifying their supply chains. The MoU on Semiconductor Supply Chain and Innovation Partnership is a significant step that will encourage B2B opportunities and promote research and skilling. As the US & India look to jointly build semiconductor assemblies and strengthen the latter’s technical education systems, the country’s proven ability to deliver skill with scale will likely accelerate the process.
Several US semiconductor companies have already announced investments, while some are keenly tracking the developments unfolding in India. While the realignment won’t happen overnight, a real time bound opportunity for India to create a compelling proposition and position itself as a trusted partner for U.S. companies to set foot on our investment shores.
On course for a ‘Mightier’ and secured tomorrow
India’s joining of the Artemis Accords, which includes a joint manned mission to the International Space Station in 2024 between ISRO and NASA, will provide a steer toward humankind’s return to the moon and further exploration of Mars. Another stimulus is both countries’ desire to accelerate the defence industrial cooperation roadmap, which is seen as a great way to enhance development of advanced systems and collaborate on testing and research. The recent joint announcements around the transfer of defence technology will put India at par with a handful of countries such as the US, UK, France, and Russia that produce jet engines indigenously.
The power of culture and diaspora
India and the US share a camaraderie that is unique in many ways. The strong, influential, and growing Indian diaspora in the US, which holds the top echelons of businesses, medical, academic, and political communities continues to spearhead the collaboration agenda. The announcement of opening of 2 new US consulates in Ahmedabad and Bengaluru, and an Indian consulate in Seattle, demonstrates the commitment of both governments to invest in strengthening of people-to-people ties while facilitating opportunities for businesses to invest and grow in each other’s market.
We rarely see a visit by a state head have such a build-up and yet surpass expectations. As India takes its place at the top table of global economies, its strategic embrace of the US is now stronger than ever. A further spur is provided by the country’s G20 presidency, which the US has been a big supporter of, is providing a platform for both countries to take the bilateral relations for the global good.
PM Modi in his congressional address said that the future is AI – ‘America and India’. This has brought a change in the mindset from AI – ‘As Is’ to AI – ‘All In’. Aspirations are at an all-time high. However, the speed of execution will hold the key to how the two nations plan to steer global growth, resilience, and camaraderie in times to come.
(This article is authored by Naveen Aggarwal, Office Managing Partner – Delhi NCR and US-India Corridor Leader, KPMG in India)
