On June 22, 2023, President Biden showered Indian Prime Minister Narendi Modi with expansive flattery during a lavish state dinner. He sought to draw India closer at a time when the United States is in open conflict with Russia and in an uneasy standoff with China. Biden pronounced America’s partnership with India “the most consequential in the world.” Modi’s visit has been seen as a milestone in ties between the two countries and that enhance further economic growth
Modi’s visit held immense importance as it aimed to further strengthen our strategic partnership, foster economic cooperation, promote technological collaboration and address global challenges. Both nations are committed to deepening their defensive ties, including joint military exercises, defense technology transfers and collaboration in research and development.
During his visit, Modi engaged in productive discussions with President Biden, leaders of Congress and representatives of the business community. Modi highlighted India’s economic reforms, emphasizing his country’s potential as an attractive investment destination.
Historically, the relationship between America and India has never been that deep or close. India, which remained nonaligned during the Cold War, has refused to join the American-led coalition, aiding Ukraine in its war against invading Russian forces.
Subhrakant Panda, Federation of Indian Chambers of Commerce & Industry (FICCI) president, said that Modi’s landmark visit to the U.S. has been very successful with several substantive outcomes relating to semiconductors, defense acquisitions, access to critical technology, the Artemis Accord for space cooperation and the resolution of six outstanding trade disputes.
Modi sought to promote technological collaboration between India and the United States. His visit resulted in a number of significant deals for his country. The most notable is joint-production of jet-fighter engines between General Electric aerospace unit and India’s state-owned Hindustan Aeronautics. In addition, Modi secured investment from several American semiconductor companies. For example, memory-chip maker Micron will invest up to $825 million to build a new semiconductor assembly and test facility with support from the Indian government.
During Modi’s visit to America, he reached out to its expat community, which includes high-level professionals in different fields, including technology, engineering, medicine, finance and academia. The CEOs of Alphabet, IBM and Microsoft are of Indian descent, as are the heads to three of America’s five top business schools. Given the accomplishments of Indian-Americans, 70% of the American public has a favorable attitude toward India. This compares to 15% for China.
The economic relationship between the United States and India has enjoyed remarkable growth, fostering mutually beneficial partnerships. In 2021-22, the bilateral trade between India and the U.S. stood at a record $119 billion. Both nations have made efforts to address trade barriers and facilitate a more balanced trade relationship.
India’s fast-growing economy is currently the fifth largest in the world. Its GDP is expected to surpass Japan and Germany in the next few years. Goldman Sachs projects that India’s GDP will overtake the euro areas in 2051 and America by 2075. For India to achieve these results, India just needs to continue to grow at its present pace.
India’s exports play a pivotal role in driving its economic growth. The country’s skilled labor force, robust manufacturing capabilities, advancements in technology and growing consumer base present opportunities for diversification and continued development. Top exports of India are refined petroleum ($49 billion), packaged medicants ($19 billion), jewelry ($10 billion) and rice ($10 billion).
Prime Minister Modi’s visit proved to be a milestone in Indo-U.S. bilateral relationship. Former FICCI President Harsh Singhania said, “The strategic accords concerning semiconductors, defense, space collaboration and research issues are pathbreaking and significant. India will gain from the technology of the United States and make itself much more self-reliant. The U.S. will benefit from the number of jobs and other new opportunities that arise out of this partnership.”
Originally published in the Sarasota Herald-Tribune
