Fintech

US Set For ‘Substantial’ India Investments to Boost Tech Ties

 

India will see “substantial investments” from US firms Commerce Secretary Gina Raimondo said on Friday, adding that Washington was looking to “deepen” technology ties with the country.

Raimondo said India was a trusted technology partner for the United States and that it could become a supplier in the “entire electronics supply chain, not just semiconductors”.

The US Commerce Secretary made her remarks after both countries signed a memorandum of understanding to cooperate in the semiconductor sector.

 

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“We want to deepen our technology relationship with India,” she said after meeting India’s Trade Minister Piyush Goyal.

India has been seeking to attract more investment in the chipmaking and display sector under a $10 billion incentive plan.

Last year, the government said it would cover 50% of the project cost of new local semiconductor facilities.

 

‘Not about decoupling’

Raimondo, who is leading a delegation including executives from 10 US companies, said India’s ambitions to expand its tech sector were “totally aligned with the United States’ desire and goal to make our supply chain more resilient”.

She also said she would announce a number of “substantial investments” by US firms in India, without giving any details.

Raimondo also said Washington was not seeking a “technological decoupling” from China.

“I want to be also clear… this isn’t about decoupling, what it is about is keeping eyes wide open to the fact that China is explicitly trying to get access to American technology to use in its military and we need to protect ourselves and our allies and partners from that happening,” she added.

Raimondo’s visit to New Delhi comes amid increasingly tight US export restrictions on chipmaking technology to China. Washington says they are aimed at hobbling Beijing’s ability to expand its chip industry and enhance its military capabilities.

Meanwhile, China’s government has earmarked $140 billion to boost domestic chip manufacturing to overcome the US export curbs.

 

  • Reuters, with additional editing by Vishakha Saxena

 

Also read:

India, US Partner on Chips, AI and Arms to Take on China

Apple Supplier Foxconn Speeds up India Expansion in China Shift

India Finds Huge Lithium Deposits For First Time in Far North

India-Russia Oil Deals Erode Dollar’s Currency Dominance

Apple Chief Tim Cook ‘Very Bullish’ on India – Nikkei

Apple’s Shift to Produce iPhones in India Facing Hurdles – FT

Vishakha Saxena

Vishakha Saxena is the Multimedia and Social Media Editor at Asia Financial. She has worked as a digital journalist since 2013, and is an experienced writer and multimedia producer. As a trader and investor, she is keenly interested in new economy, emerging markets and the intersections of finance and society. You can write to her at vishakha.saxena@asiafinancial.com

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