U.S. and India set to announce a flurry of defense, chip and AI deals

The U.S. and India will announce a number of defense and technology cooperation on Thursday during Prime Minister Narendra Modi’s state visit, U.S. officials said.

Senior government officials met with reporters to discuss a range of deals, from deepening defense and military ties to stepping up technology cooperation and diversifying supply chains.

“The nature, depth and breadth of our work on this matter is unprecedented,” said one of the officials.

India is set to overtake China as the world’s most populous country and become the third largest economy in the next few years.

“India will be an important strategic partner for the United States for decades to come,” said one official.

“There is no more important partner than India now and in the future,” the official said, adding that the bilateral partnership is “deeper and broader than ever before.”

“We now instinctively look to each other and work together to protect a free and open Indo-Pacific,” the official said. “Our nations will shape the future towards an open, prosperous, secure, stable and resilient world.”

Modi’s first state visit to the United States includes President Joe Biden and First Lady Jill Biden, as well as Tesla CEO Elon Musk and Bridgewater Associates founder Ray Dalio. He met with prominent business leaders.

Indian leaders will attend a press conference with Mr. Biden on Thursday, where the two leaders will answer reporters’ questions, officials said. Reuters reports that Modi has not held a single press conference in India since becoming prime minister in 2014, which is highly unusual.

On the defensive side, officials highlighted three announcements.

India and the United States are expected to announce a deal to jointly produce the F414 jet engine in India with the participation of General Electric and Hindustan Aeronautics.

It is also expected to announce a mainship repair agreement that will save the US military money and time and allow Indian shipyards to maintain and repair US Navy ships.

Third, the so-called India-US Defense Acceleration Ecosystem aims to integrate India’s growing private sector defense industry with the US defense sector.

A military pact between the two countries would help India secure its borders with China and Pakistan and hopefully reduce its heavy dependence on Russia for military supplies.

“India is actively engaged in diversification away from Russia’s military arsenal…The United States is not alone in its efforts to diversify. It is actively backed by France, the United Kingdom, Israel, etc. “There is a need for efforts to ensure India’s defense capabilities more generally,” senior government officials said.

India is also widely expected to purchase MQ-9B SeaGuardian drones, but the deal has long been hampered by bureaucracy.

“Honestly, I think the Indian public is surprised and excited by the steps we have been able to take to remove the bureaucratic obstacles to achieving this goal. I think we are fully aware that we need to see it through to the end,” said one senior government official.

Modi’s visit comes at a time when the United States is adopting a “friend-shoring” strategy of diversifying away from China and tapping into the potential of other countries in the region.

On technology, officials said U.S. and Indian companies will partner to build semiconductor facilities to help diversify supply chains.

The two countries will also announce agreements to strengthen supply chains for key minerals, improve communication capabilities and work on AI development, among other things.

Applied Materials will also announce a new semiconductor center for commercialization and innovation in India, the people said.

Applied Materials Chief Executive Officer Gary Dickerson said Wednesday in a video interview released on Prime Minister Modi’s official YouTube channel, “This is a time for India to drive tremendous growth, and I look forward to working with the Prime Minister and the people of India. We are very much looking forward to working together to achieve great success.” page.

“Many businesses around the world are looking to India for its credibility and amazing talent. I deeply believe that now is India’s time to shine,” said Mr. Dickerson.

The United States also faces increasing competition from China in the space race.

NASA and the Indian Space Research Organization will collaborate on a framework for human spaceflight cooperation this year.

Indian students “have grown 20 percent last year alone and are poised to become the largest foreign student community in the United States,” officials said, adding that the U.S. government wants to welcome more Indian students and workers. rice field.

The U.S. embassy in India said in June that the U.S. issued 125,000 student visas to Indian citizens last year, about one in five student visas, compared to the number issued to other nationalities. announced that it exceeded

India’s Acting Minister for Consular Affairs, Brendan Malarkey, said earlier this month that he will be meeting more students this year than ever before.

The U.S. State Department may also change how it renews temporary work visas, senior government officials said ahead of a joint statement on Thursday.

“The human resources aspect should not be underestimated,” said a source familiar with the matter. “When we put forward the quad education initiative last year, we were flooded with bright Indian candidates.”

“The diaspora community that unites India and the United States is actively engaged, enthusiastic and committed, so I would simply like to say that there are many factors that have helped move this relationship forward.”