India-US Partnership for AI Leadership

Technology lies at the heart of contemporary discussions on national power and geopolitics. Having established its technological base over the years, India is well-positioned to seize the opportunities emerging from this evolving global landscape. Among the many emerging and critical technologies, Artificial Intelligence (AI) has particularly attracted unprecedented attention worldwide.

In this policy brief, the author assesses that while India ranks among the top countries globally in AI research and development, supported by a skilled developer workforce and a robust technology industry, it also faces significant limitations in achieving true AI leadership. To overcome these structural constraints, the Indian government, demonstrating strong political commitment, has in recent years launched several ambitious national missions, including the India AI Mission.

In support of its national efforts, and with a clear understanding of its strengths and limitations, India is also seeking international collaboration. India shares a significant and long-standing technology partnership with the US and is actively pursuing cooperation with the US on AI.  In February 2025, the two nations launched the “Transforming the Relationship Utilizing Strategic Technology" (TRUST) initiative, with AI at its core.

The author analyses the dynamics of the India-US technology partnership, tracing its evolution from the early successes of the 1980s–90s to the more recent India-US Initiative on Critical and Emerging Technology (iCET) under the Biden administration, which began with aspirational goals but has delivered underwhelming outcomes. In order for the TRUST initiative to build on past experience and avoid previous shortcomings, she argues that, for mutual benefit, the US must demonstrate greater confidence in India by recognising it as a strategic partner on par with its key allies, granting access to unrestricted computing resources and supporting the diversification of semiconductor manufacturing in India.

She further asserts that to build a resilient and future-ready technology value chain, the two countries should deepen collaboration in areas such as critical mineral exploration and processing, energy systems, and access to advanced telecommunications technology. Stronger industry-to-industry partnership is also essential to foster a deeply integrated technological ecosystem between India and the US.

The author underlines that India's significance extends beyond its technological capabilities to include its vast demography as well. Tapping into this expansive market is critical for scaling and refining AI technologies. Therefore, this is the good reason for India and the US to work together to promote digital literacy and establish a robust, adaptive policy and governance framework to support effective AI adoption. 

In conclusion, the author observes that India and the US, as two critical stakeholders, must rethink and reshape their technology strategies, particularly in light of today’s volatile geopolitics, increasingly competitive technological environment, and China’s initiatives to achieve leadership in AI and several related fields. It is both logical and imperative for India and the US to harness their complementary strengths to mutually enhance their AI capabilities,  secure their technology future and remain competitive in the evolving global digital order.

To read this DPG Policy Brief Vol. X, Issue 19, please click "India-US Partnership for AI Leadership”.