The deal on tech transfer is the outcome of decades of hard work — the first agreement on tech cooperation was signed between Ronald Reagan and Rajiv Gandhi in 1984

Time was when the United States imposed sanctions on third countries for transferring technology to India. For instance, in 1992, the US imposed sanctions on Russian space organisation Glavkosmos and the Indian Space Research Organisation (ISRO) because of the ‘transfer of rocket engine technology’, which, in its view, violated the provisions of the Missile Technology Control Regime (MTCR).

Much water has flowed down the Hudson since then, and cooperation in technology seems to be the next big ticket in India-US relations, as was evident from Prime Minister Narendra Modi’s recent visit to the US.

For many years, despite the upswing in ties, technology transfer, particularly in the defence arena, was a problem in bilateral relations. New Delhi has complained about Washington’s refusal to transfer technology, seeing this as symbolising the US’ lack of trust in India. The US refusal to transfer technology has also affected defence deals in the past. Washington has been particularly reticent about dual-use technology, i.e. technology which has both civilian and defence applications.

But technology was the leitmotif in the Prime Minister’s visit. In the joint statement signed at the end of the visit, both sides affirmed that technology would play ‘the defining role’ in deepening relations and committed themselves to an ‘open, accessible, and secure technology ecosystem’. Technology is at the centrepiece even in the section in the joint statement on the defence partnership with both sides hailing the MoU between General Electric and Hindustan Aeronautics Limited to produce GE-F414 jet engines in India, for HAL’s TEJAS MK-2 as this would ‘enable greater transfer of US jet engine technology than ever before’.

The agreement on technology transfer is the outcome of many years of dialogue and hard work by officials from both countries, with the first agreement on technological cooperation signed between US President Ronald Reagan and Prime Minister Rajiv Gandhi way back in November 1984. The Initiative on Critical and Emerging Technology (iCET), which started in January, is clearly a breakthrough in US-India ties, hailed as being on par with the Indo-US nuclear deal. The agreement covers everything from space to semiconductors, high-performance computing to Artificial Intelligence. These are all important areas from India’s point of view as it wants to develop a sound manufacturing base for sustained growth in the new economy. It will also enhance defence interoperability and lead to more defence co-development and co-production between the two countries.

Technology has always been a major currency in international relations. As Modi said in his address to the joint session of US Congress: “Technology will determine the security, prosperity and leadership in the 21st century.” Scholars like Raju G C Thomas have pointed out the examples of South Korea and Japan to show how technological cooperation with the US in the defence sector can often promote technological superiority in the civilian sector, and help faster industrial growth. If these examples are anything to go by, India indeed is poised for rapid growth.

Among other important takeaways from the visit was the decision to resolve six unsettled disputes at the World Trade Organization. India’s plans to procure General Atomics MQ-9B HALE UAVs, which will be assembled in India, and enhance India’s ISR (Intelligence, Surveillance and Reconnaissance) capabilities was another key takeaway. Boeing’s decision to invest $100 million in infrastructure and pilot training in the backdrop of Air India’s recent deal to buy 220 jets from Boeing is also significant. Another announcement was made by US semiconductor technology and chipmaker Micron Technology, Inc, which said it would invest around $825 million in a new chip assembly and test facility in Gujarat. The launch of the US-India Defense Acceleration Ecosystem (INDUS-X), a network of universities, startups, industry, and think tanks to facilitate joint defence technology innovation, and co-production of advanced defence technology is one more important takeaway.

Overall, the visit was a success for both sides, with several important breakthroughs made. The fact that the White House feted Modi despite concerns in the US over India’s position on the Russian invasion of Ukraine and human rights, shows that the India-US relationship is no longer transactional. Beyond values, it is built on India’s need for Western technology to meet its security and developmental challenges, and on the mutual need to manage the rise of China.