Modi’s US visit: India, US announce deals to boost ties

These agreements also highlighted significant private-sector investments

June 23, 2023

In the semiconductor space, US chipmaker Micron Technology plans to establish a new semiconductor testing and packaging unit in Gujarat

India and the US established a Joint Indo-US Quantum Coordination Mechanism

General Electric's aerospace unit entered into an agreement with India's state-owned Hindustan Aeronautics Ltd to manufacture fighter jet engines

India pledged its participation in the US-led Artemis Accords and committed to collaborating with NASA on a joint mission to the International Space Station in 2024

Indian Prime Minister Narendra Modi and US President Joe Biden have announced several deals aimed at strengthening economic and diplomatic relations between the two nations and highlighting private sector investments, according to media reports. These agreements come in the backdrop of PM Modi’s visit to the US.

Semiconductors and advanced computing

The Indian cabinet has recently approved US chipmaker Micron Technology’s US$ 2.7 billion plan for establishing a new semiconductor testing and packaging unit in Gujarat. Furthermore, Applied Materials (AMAT.O), a prominent US semiconductor toolmaker, announced its commitment to invest US$ 400 million over the span of four years to establish an engineering center in India.

Regarding advanced computing, India and the United States established a Joint Indo-US Quantum Coordination Mechanism. This mechanism will facilitate collaborative research endeavours between the public and private sectors in both countries in quantum technologies.

Trade

On the trade front, both countries had agreed to resolve six ongoing disputes at the World Trade Organization. In addition, India agreed to lift retaliatory tariffs it had imposed in response to US Section 232 national security measures on steel and aluminium, affecting US products like chickpeas and apples.

Battery and Solar

Epsilon Carbon Limited, an Indian company, committed $650 million to construct a greenfield electric vehicle battery component factory. Over the course of five years, this project is expected to employ more than 500 individuals.

A new enterprise called VSK Energy LLC, supported by Indian solar panel manufacturer Vikram Solar Ltd (VIKO.NS), unveiled plans to invest up to $1.5 billion in the US solar energy supply chain. Starting with a factory in Colorado in the coming year, this initiative contributes to the US endeavour of establishing a competitive clean energy manufacturing sector.

Defence

Regarding defence, General Electric’s aerospace unit entered into an agreement with India’s state-owned Hindustan Aeronautics Ltd to manufacture fighter jet engines for the Indian Air Force. This collaboration, deemed a historic accord, opens up the potential for joint production of GE Aerospace’s F414 engines in India. The engines will power the Tejas fighter jets.

Additionally, India’s defence ministry approved the procurement of 31 armed MQ-9B SeaGuardian drones from General Atomics for a sum exceeding US$ 3 billion. The MQ-9Bs will be assembled in India, with General Atomics establishing a new facility there.

Space

In the field of space exploration, India pledged its participation in the US-led Artemis Accords and committed to collaborating with NASA on a joint mission to the International Space Station in 2024.
Source: Tbsnews

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