US-India relations 2.0: Unlocking new business horizons for a dynamic future

The US is India’s largest trading partner, with exports of $73.21 billion and imports of $83.33 billion as of October 2024. Built on shared democratic values and a commitment to economic growth, the US-India relationship offers unprecedented opportunities for businesses in both countries.

When then-US President Donald Trump visited India in 2020, it marked a significant moment in US-India relations, underscoring the growing partnership between the two nations. The engagement between the two dynamic world leaders set the stage for a deeper collaboration, particularly in technology and innovation. Now, with President-elect Donald Trump poised for a second term, this partnership is expected to advance further, becoming a foundation for an even stronger bilateral alliance.

The US and India are strongly integrating their economies through various agreements such as IPEF (Indo-Pacific Economic Framework for Prosperity) and other bilateral agreements on clean energy, space cooperation, science, critical and emerging technologies etc. QUAD which is a strategic forum comprising India, Japan, the US and Australia, is seeking to balance China’s assertiveness in the Indo-Pacific, especially its military presence and economic influence through initiatives like the Belt and Road Initiative (BRI).

For companies in the US and India, these agreements mean access to new avenues for collaboration, co-innovation, and building economic resilience. Beyond diplomatic engagements, the focus will be on leveraging each nation’s strengths to foster a future defined by technological leadership and economic synergy.

A foundation for technological collaboration

The National Security Advisors of the US and India recently chaired the second meeting of the US-India Initiative on Critical and Emerging Technology (iCET), aimed at deepening and expanding strategic cooperation across key technology sectors such as space, semiconductors, advanced telecommunications, artificial intelligence, quantum computing, biotechnology, and clean energy. Additionally, the leaders convened an industry roundtable, bringing together CEOs and thought leaders from both countries to mobilize private sector investments and partnerships in these strategic technology sectors.

iCET’s focus on bridging the innovation ecosystems of the two nations has led to a combined funding of over $90 million over the next five years. The US-India Global Challenges Institute will forge high-impact university and research partnerships between US and Indian institutions in the areas of semiconductor technology and manufacturing; sustainable agriculture and food security; clean energy; healthy equity and pandemic preparedness, and other critical and emerging technologies.

Through its “Make in India” and “Digital India” initiatives, India is transforming itself into a global manufacturing hub. Production Linked Incentive scheme that encourages investment in key sectors such as electronics, textiles, and automobiles, in Tech Manufacturing – electronics and semiconductors – all help position India as a global hub for innovation. Partnerships with US firms in bringing capital, expertise, and advanced technologies have further amplified this impact.

With its skilled talent pool and a growing manufacturing ecosystem, India can complement the US’s technological leadership with scalable production capabilities. This is an opportunity for mutual growth and a cornerstone for ensuring global supply chain resilience.

These developments signal a paradigm shift where US investments no longer see India as merely a cost-saving destination but as a strategic partner for value creation and co-innovation. The partnership between the two countries extends to deepening defence innovation, civilian space technology, advanced telecommunications, biotechnology and biomanufacturing, semiconductor supply chains, and collaboration on quantum & high-performance computing capabilities.

The US-India Business Council (USIBC) is another body that promotes an inclusive bilateral trade environment between India and the US By serving as the voice of industry, linking governments to businesses, and supporting long-term commercial partnerships, the council nurtures the spirit of entrepreneurship, creates jobs, and successfully contributes to the global economy.

The role of personal diplomacy in business synergy

Leaders’ personal relationships often set the tone for diplomatic and business engagements, and Trump and Modi’s bond is no exception. Their shared focus on leveraging technology for economic growth has already influenced sectors such as IT services, R&D, and AI. Businesses from both nations have reported an increase in cross-border investments, particularly in cutting-edge technologies.

One of the most promising outcomes of this renewed relationship is the expansion of Global Capability Centres (GCCs) in India. Today, over 1,700 GCCs operate in India, serving as innovation hubs for Fortune 500 companies. These centres have moved far beyond outsourcing—they are now driving critical R&D, AI development, and product innovation for global markets. India’s GCCs are set to evolve into a US$ 100 billion (nearly ₹8.5 lakh crore) industry by 2030, employing over 2.5 million professionals, according to a recent report. Through continued US investments, GCCs are poised to play an even bigger role. For US businesses, this translates to cost-efficient innovation; for India, it brings high-value jobs, skill development, and economic growth.

Opportunities in the new era

The evolving dynamics of US-India relations are creating unparalleled opportunities for innovation and collaboration, even as challenges like stricter H-1B visa regulations continue to shape the narrative. These hurdles have catalysed new growth pathways, particularly in US venture capital, driving investments in advanced technologies and fostering a cycle of innovation.

Building strategic partnerships to advance the deployment of high-quality, cost-effective Open RAN technology at scale is a key focus, exemplified by the $5 million USAID Edge Fund grant awarded to Qualcomm and Mavenir. This initiative supports testing Qualcomm’s Open RAN stack in India with Qualcomm further contributing an additional $9.4 million to the project. Complementing these efforts, USAID is driving Open RAN workforce development opportunities in India through its Emerging Technologies in the Indo-Pacific program. This 18-month, $410,000 initiative aims to integrate Open RAN-focused educational content into Indian technical training programs while fostering collaboration between Indian institutions and the Asia Open RAN Academy in the Philippines.

Together, these initiatives strengthen India’s role in the global Open RAN ecosystem, promoting innovation, workforce readiness, and cross-border partnerships.

Towards a future of shared leadership

The US economy is currently $27.36 trillion, Indian economy is $4.2 trillion. The US-India shared leadership will potentially take the US beyond $35.5 trillion, and India beyond $10 trillion by 2030, benefiting citizens in both countries as well as the world. Beyond trade and technology, this partnership will focus on creating shared leadership in solving global challenges, from climate change to digital inclusion.

This collaboration isn’t just about addressing immediate needs—it’s about building the infrastructure for a future-proof global economy. By aligning their strengths, the US and India are positioned to tackle some of the world’s most pressing challenges, from supply chain vulnerabilities to technological inequality, creating a robust framework for shared growth and innovation.