MAGA + MIGA = Mega Boost In AI & Tech Collaboration

Building on the iCET framework that the two nations had signed in 2022 during former President Joe Biden’s administration, the framework has been repackaged as the TRUST (Transforming the Relationship Utilizing Strategic Technology) initiative.

“The 21st century is a technology-driven century. Close cooperation in the technology sector between countries that believe in democratic values can give new direction, strength and opportunities to the entire humanity,” said the India-US joint-statement.

A key focus of TRUST will be on developing an AI infrastructure roadmap in India, addressing financing, compute power and regulatory challenges.

"The initiative shows promise but requires careful attention to regulatory alignment, ethical AI development frameworks, and robust data protection mechanisms to succeed," said Abhivardhan, Managing Partner at Indic Pacific Legal Research and Chairperson & Managing Trustee of the Indian Society of Artificial Intelligence and Law.

PM Modi and President Trump also announced the INDUS Innovation platform, modeled on the INDUS-X (defense partnership platform), which will strengthen academic and industry partnerships between the two countries, as they work to simplify tech trade and exports. 

The China Factor

One of the key reasons for the deepening of ties between the US and India is Washington's need for strong allies in its AI arms race with China. India is in a strategic and rapidly-growing technological position to be a valuable partner due to its expanding AI ecosystem, skilled workforce and growing semiconductor ambitions.

By strengthening collaboration, the US gains a trusted partner in securing supply chains, advancing AI research, and countering China's dominance in critical technologies.

With China’s DeepSeek coming into the picture and threatening to disrupt the US’s dominance in the field of AI, the US is increasingly relying on India to bolster its position.

“Artificial intelligence is a very complex subject, but it seems to be where people want to be… and we (the US) are leading right now by a lot. But other people will try to catch us. I don’t think they’re going to be able to,” said Trump, in what appeared to be a veiled reference to China.

In the one month that Trump has assumed office, the US has announced Project Stargate, which will inject US$ 500 billion into building sustainable infrastructure for AI, in partnership between OpenAI and SoftBank. 

Whereas, India has announced several AI-forward measures in its budget, like a Rs 20,000 crore start-up fund-of-funds for deep tech, Rs 2,000 crore for the IndiaAI Mission, 10,000 fellowships under PMRF for IITs and IISc (premier institutes for AI research in India), and a fourth AI Centre of Excellence in the field of medicine. Apart from this, the Indian IT Ministry is also procuring 18,000 advanced GPUs.

Challenges For India

As India secures the GPUs needed to build a robust AI infrastructure, it faces another hurdle. The Biden administration's restrictive executive order, which he signed in January right before exiting office, places India in a second-tier category for access to advanced semiconductors from top US chip designers like Nvidia and AMD. This limits India’s ability to acquire cutting-edge chips.

"Previous Biden-era restrictions on GPU exports to India need careful reconsideration under this new framework, as to whether that framework will be binding or not," said Abhivardhan.

However, Indian officials told The Secretariat that relaxations are expected in the future.

“United States and India are also joining forces to ensure that AI and other advanced technologies are developed by two of the most intellectually and technologically advanced nations anywhere in the world,” said Trump as he read out the joint statement.

After the US and China, India is the country of origin for the third-highest number of elite AI researchers. According to 2022 estimates, 4/5th of Indian AI researchers leave the country to work/study further in countries like the US, South Korea, China, the UK, etc.

But as Trump comes down hard on immigration, over 350,000 Indian techies in the US may bear the brunt of his hardline approach. Indian immigration to the US remains an issue unresolved during PM Modi's ongoing US visit.