US and India Deepen Tech Ties for a More Resilient Future: Yellen’s Visit Highlights Growing Partnership
As the world navigates a complex and shifting landscape, the US and India are forging a stronger and more strategic partnership, particularly in the crucial domain of technology. Recent statements from US Treasury Secretary Janet Yellen during her visit to India, highlighting the expansion of technology giants like Apple and Google‘s phone production in the country, signal a clear commitment to deepening ties between the two nations. This collaboration not only strengthens global supply chain resilience but also fosters innovation and economic growth in both countries.
"Friendshoring" and the Power of Collaboration
Yellen’s focus on "friendshoring," a strategic approach to bolstering supply chain resilience by strengthening ties with trusted trading partners, reflects the US’s commitment to working with like-minded nations. India, with its burgeoning tech sector and rapidly growing economy, aligns perfectly with this vision. Yellen specifically highlighted the expanding production footprint of Apple and Google in India as a clear example of this progress. The move signifies a significant shift in global manufacturing, offering India a greater role in the global tech landscape while providing the US with a trusted and reliable partner.
PGII: Investing in Digital Transformation for Inclusive Growth
Beyond phone production, the US commitment to India’s digital transformation is evident through its Partnership for Global Infrastructure and Investment (PGII). This initiative, aiming to mobilize $200 billion by 2027, focuses on investing in critical infrastructure projects that drive inclusive and sustainable development. Specifically, the US has announced investment in:
- Agri-tech: Supporting climate-smart agricultural practices for enhanced food security and sustainable development.
- Digital Payments: Empowering micro-entrepreneurs with access to efficient and inclusive financial services.
- Renewable Energy: Accelerating the transition to a cleaner and more sustainable energy future.
- Health and other Infrastructure Sectors: Investing in essential infrastructure that supports economic growth and improves the well-being of citizens.
A Shared Future: US and India’s Economic Interdependence
The strength of the US-India collaboration extends beyond technology and infrastructure. Yellen underscores the profound economic interdependence between the two countries, stating that the US is India’s largest trading partner, with over $150 billion in bilateral trade in 2021. This robust exchange spans various sectors, and the growing number of Indian students in the US (2 lakh) further strengthens the people-to-people ties.
Leading Companies Champion the Partnership: Stories from IBM, Infosys, and Intel
Illustrating this commitment to collaboration are the voices of leading tech companies present at the roundtable. Sandip Patel, Managing Director of IBM India/South Asia, emphasizes the value of a "trusted technology partnership" between India and the US, advocating for pro-active policy measures to enhance "friend-shoring" and reap mutual economic benefits.
Nandan Nilekani, Non-Executive Chairman of Infosys, highlights his company’s strong presence in the US, with a global workforce of 330,000. He underscores Infosys’s commitment to talent development, boasting its world-class training centre in Indianapolis dedicated to American professionals and its collaboration with US universities. Nilekani also emphasizes Infosys’s role in supporting the core infrastructure of India’s digital transformation, including the digital backbone for the nation’s income tax and goods and services tax (GST) systems.
Nivruti Rai, Intel’s Vice President and Managing Director of the company’s operations in India, reinforces the strong collaboration between the US and India. She highlights Intel’s commitment to building a robust semiconductor ecosystem in India, further cementing the strong connection between the two nations in this crucial field.
Beyond the Headlines: The Significance of Collaboration Beyond Economics
While the economic benefits of this partnership are undeniable, the significance extends beyond mere figures. This collaboration embodies a shared commitment to a more secure and prosperous future. By deepening technological ties and investing in infrastructure, the US and India are not only fostering economic growth but also promoting a more inclusive and resilient global landscape.
This partnership holds promise for both nations, enabling them to leverage their strengths and address shared challenges. From navigating the complexities of global supply chains to developing innovative solutions for climate change, this collaboration paves the way for a future where nations can work together to build a better world for all.
