India is important to the U.S.’s Indo-Pacific policy, says Rubio, invites Modi to Washington
The US Secretary of State's four-day India visit included discussions on deepening cooperation in strategic technologies and defence industrial co-production...
What Happened
- The US Secretary of State's four-day India visit included discussions on deepening cooperation in strategic technologies and defence industrial co-production.
- Both sides reaffirmed commitment to the India-US Comprehensive Global Strategic Partnership, with technology cooperation identified as a key pillar for future expansion.
- The visit followed a period of active US-India technology diplomacy under the iCET (Initiative on Critical and Emerging Technology) framework, covering semiconductors, AI, quantum computing, and defence technology.
- Discussions also addressed energy technology diversification, with the US flagging the potential of American energy products to enhance India's supply security.
Static Topic Bridges
Initiative on Critical and Emerging Technology (iCET)
The iCET (India-US Initiative on Critical and Emerging Technology) is a bilateral framework launched in May 2022 at the Quad Leaders' Summit, designed to expand strategic technology partnership and defence industrial cooperation across governments, businesses, and academic institutions. It is co-managed by the National Security Councils of both countries.
- Launched: May 2022, at the Quad Summit.
- Inaugural meeting: January 31, 2023, in Washington D.C., led by the National Security Advisors of both countries.
- Core domains: Artificial intelligence, quantum computing, semiconductors, advanced wireless (5G/6G), biotechnology, advanced materials, and space.
- The framework established a joint Indo-US Quantum Coordination Mechanism and a bilateral Defence Industrial Cooperation Roadmap.
- Under iCET, the US committed to support India's indigenous defence manufacturing, including co-production arrangements for jet engines (GE-414 engine deal for the Tejas Mk2 fighter) and armed drones.
- The initiative was later renamed the TRUST Initiative (Technology for a Resilient and United Strategic Technology) under the subsequent US administration.
Connection to this news: The Secretary of State's discussions on deepening technology cooperation represent a continuation of the iCET agenda at the highest diplomatic level, reinforcing that technology is now a primary axis of India-US strategic engagement.
India's Defence Industrial Ecosystem and "Make in India" in Defence
India's defence procurement policy has undergone a structural shift since 2014 toward indigenisation. The Defence Acquisition Procedure (DAP) 2020 introduced an explicit preference hierarchy prioritising domestic design, development, and manufacture. The Foreign Direct Investment (FDI) cap in defence was raised from 26% to 74% under the automatic route (and 100% under the government route) to attract foreign technology partners.
- India's defence budget for 2024-25 stood at approximately ₹6.21 lakh crore, making it among the world's largest defence spenders.
- The government set a target of ₹1.75 lakh crore in domestic defence production and ₹35,000 crore in defence exports by 2024-25.
- The Positive Indigenisation List (PIL) — four lists notified between 2020-2024 — bans import of specified defence items, compelling domestic sourcing or co-production.
- Defence Corridors have been established in Uttar Pradesh and Tamil Nadu to anchor domestic defence manufacturing clusters.
- The GE-414 jet engine deal (signed 2023) for co-manufacture in India is the most significant technology transfer agreement in Indian defence history.
Connection to this news: US offers of technology cooperation in defence production fit squarely within India's indigenisation agenda — the US and its companies are positioned as co-production partners under India's DAP 2020 framework, not merely export suppliers.
Semiconductor Policy and Supply Chain Security
The US-India semiconductor partnership is a central pillar of iCET, driven by shared concerns about supply chain concentration in Taiwan and the need for trusted chip manufacturing ecosystems. India launched its Semiconductor Mission in December 2021, with ₹76,000 crore incentive outlay, to build domestic fabrication, packaging, and design capacity.
- India's Semiconductor Mission (ISM) was notified in December 2021 under the Ministry of Electronics and Information Technology (MeitY).
- Micron Technology (US) announced a $825 million semiconductor assembly and test facility in Gujarat in 2023 — the first US chip company to commit manufacturing capacity in India.
- The US CHIPS and Science Act (2022) explicitly encourages allied-country semiconductor partnerships as part of supply chain de-risking.
- India and the US signed an MoU on semiconductor supply chains in 2023, covering talent development, R&D, and facility siting.
Connection to this news: Strategic technology discussions during high-level diplomatic visits increasingly include semiconductor supply chain coordination — a direct national security interest for both countries given dependence on geopolitically concentrated sources.
Key Facts & Data
- iCET launched: May 2022 (Quad Leaders' Summit); inaugural meeting January 31, 2023.
- GE-414 co-production agreement for Tejas Mk2 signed: 2023 — the largest defence technology transfer in Indian history.
- India's FDI cap in defence under automatic route: 74% (raised from 26%).
- India's Semiconductor Mission outlay: ₹76,000 crore.
- Micron Technology's India semiconductor facility: $825 million, Gujarat.
- India's defence export target (2024-25): ₹35,000 crore.
- STA-1 (Strategic Trade Authorization Tier 1) status granted to India: 2018 — enables high-technology defence exports comparable to NATO allies.