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US and India announce defence and technology deals during visit by Narendra Modi

US president Joe Biden, right, speaks during a press conference with Indian prime minister Narendra Modi at the White House

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Demetri Sevastopulo in Washington and John Reed in New Delhi

Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

Joe Biden welcomed Narendra Modi to the White House on Thursday for a state visit during which the US and Indian leaders announced defence and technology deals, including a purchase of American spy drones.

Modi and Biden held talks in the Oval Office before giving a news conference — a rare event as the Indian prime minister has not held one in years. Biden told reporters that the partnership between the US and India was “stronger, closer and more dynamic than any time in history”, while Modi spoke of a “new chapter” in the strategic relationship between the two countries.

India’s prime minister will speak to Congress before attending a state banquet at the White House.

Speaking in front of hundreds of Indian Americans, Modi earlier described the welcome ceremony as “an honour and pride for [the] 1.4bn people of India”.

“The 1.4bn people of India wish with me for India’s tricolour and America’s stars and stripes to always keep flying higher and higher,” Modi said via a translator, before saying “God bless America” in English.

Modi is only the third world leader to make a state visit to the US since Biden took office. His speech to Congress will make him one of only a handful of leaders to address the House and Senate more than once.

Ahead of the visit, US officials said India would commit to buying armed MQ-9B SeaGuardian drones, which are produced by US defence contractor General Atomics. The leaders will also announce that memory chipmaker Micron will open a $2.75bn semiconductor assembly and test facility in India, which will include $800mn in investment from the US company.

“After years of strengthening ties in a bipartisan context, the US-India partnership is deeper and more expansive than . . . ever,” said a senior US official.

Biden and Modi also signed an agreement that will result in General Electric co-producing fighter jet engines in India , which the Biden administration described as a “trailblazing initiative”.

The agreements, which also include efforts to boost co-operation in space, mark a big push by Washington to draw New Delhi into its orbit as part of a strategy to work with allies and partners to counter China.

Since taking office, Biden has invested in boosting defence and security co-operation with New Delhi, including resurrecting the “Quad” security group that includes India, Japan and Australia.

While India maintains a non-aligned foreign policy, it has moved closer to the US amid rising tensions with China.

India and China have an unresolved dispute along their nearly 3,500km-long border, which last escalated into violence in May 2020 when Chinese and Indian troops clashed in the Galwan Valley.

American officials say the clashes have made India more willing to partner with Washington.

A US defence official this week said the security deals being announced during the visit would boost interoperability between the two militaries.

Asked what role India would play in the case of a conflict over Taiwan, the senior US official refused to provide specifics, but said the countries were working more closely on maritime and other contingencies.

“We are planning more together, we are training more together,” he said.

“We’re engaging in a variety of scenario developments,” he added. “You will see that co-operation will extend increasingly not just to the Indian Ocean but to the Pacific Ocean.”

Biden has come under criticism for granting Modi a state visit, given accusations from critics that Indian democracy is under threat from a squeeze on free expression and incitement of violence against minority Muslims and Christians.

The senior US official said Biden would approach discussions about human rights with “a degree of humility” and would not engage in “hectoring, lecturing or scolding”. After the meeting Biden said he had a “good discussion” with Modi about “democratic values” common to both countries.

Modi added: “Democracy runs in our veins, we live democracy.”

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Why the US is selling India so many weapons

Prime Minister Modi visits the White House, and arms deals follow.

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US President Joe Biden and Indian Prime Minister Narendra Modi.

Indian Prime Minister Narendra Modi arrived in Washington for a state visit this week. Beyond the black-tie dinner at the White House and a speech to Congress , there have been a lot of arms deals.

Jets, drones, cyber capabilities, and more.

It’s a significant list, and builds on an expanding military partnership. The US has partnered with India more and more in response to China ’s rise, seeing New Delhi as a valuable counterweight. This is happening as India advances grievous human rights abuses against minorities, against journalists, and against political critics — all in contradiction of America’s stated values .

And yet this week, the White House is promoting a “next generation defense partnership” with India. This includes the co-production of cutting-edge technologies like jet engines and semiconductors , the prospect of new arms sales, and agreements that would allow the US to have its navy ships repaired in India. The country will also purchase 31 advanced drones from General Atomics in a deal that will cost some $3 billion. And the Pentagon and the Indian Ministry of Defense have established a new military-tech incubator called INDUS-X .

Experts point out that India under Modi increasingly does not share American values, and some of the advanced military technologies that the US is providing the country could be used against dissidents or journalists.

“If we’re just going to go full-on countering China with India as a realist approach to things, that can come back and bite us,” says Derek Grossman, a defense analyst at the RAND Corporation. “Because, as we saw during the Cold War, a lot of the dictators or semi-authoritarian regimes that we cozied up with, they were not our friends in the long run.”

US-India defense cooperation, very briefly explained

India built a relationship with the Soviet Union during the Cold War, and to this day, most of the Indian military’s weapons come from Russia . It wasn’t until the mid-2000s that India started buying arms from the United States, growing from around nothing in 2008 to $8 billion of US sales to the country by 2013 , and to $20 billion in 2020 .

Now, the new agreements will help create capacities for India as an arms producer. The Pentagon’s top Asia official, Ely Ratner, says the US was helping modernize the Indian military. The US Embassy in New Delhi described an initiative to “fast-track technology cooperation and co-production in areas such as air combat and land mobility systems, intelligence, surveillance, and reconnaissance, munitions, and the undersea domain.”

India wants to manufacture military and aerospace products. In this respect, the prospective General Electric engine deal represents a major change. Export controls and trade regulations have previously been a challenge for forging advanced production lines in India. “Engine technology is pretty sensitive,” says Vikram Singh of the United States Institute of Peace and the consulting firm WestExec Advisors. “This is a big, ambitious agenda.”

Both countries are eyeing China’s growing military and technological prowess, and the US is particularly concerned about the perceived threat of a Chinese invasion of Taiwan.

But Grossman, who previously spent a decade working on China policy at the Pentagon, says that the US goal of bolstering India’s defense is less about creating a partner who would actively participate in any US-China confrontation and actually more about India providing safe harbor on the continent. “What the United States is really looking for is access to India, in the case of a conflict against China,” he told me. “But the hope is that over time, as we continue our security cooperation, India will kind of bend a little bit, to be more flexible and maybe allow us access at certain times to certain places that can help us conduct operations.”

The US Navy established ship repair agreements with India that would enable the US to service its boats in Indian shipyards, with more agreements forthcoming, according to the White House. Grossman also emphasized that, in 2020, US Navy aircraft refueled on India’s base in the Andaman and Nicobar Islands. “They’re letting us do that in peacetime; why wouldn’t they let us do that when the stakes are much higher?” he said.

But even beyond the democratic issues, there are limits to how close this partnership could get in the near term. India remains non-aligned: It hasn’t taken a side in the Ukraine war, nor signed on to the sanctions against Russia. While India is a member of the “ Quad ,” an informal partnership with the US, Japan, and Australia, it is not a treaty ally of the United States. Grossman said that many in the Defense Department would like to see the US move toward a formal alliance with India.

That would be messy, notably because Pakistan is India’s prime rival and Pakistan is a close partner of the United States. Both countries have nuclear weapons, so if the US were to establish a treaty with India, the dynamics of a potential India-Pakistan conflict would be staggeringly complex for the US and dangerous for the world.

Nevertheless, the US military partnership with India has become a pillar of the Biden administration ’s policy toward Asia. Interestingly, the US goes out of its way to not say it has anything to do with China, although analysts uniformly agree that it’s all about China. “The strategic environment that we’re facing in the Indo-Pacific challenges to peace and stability, I think those have animated a sense of Indian purpose more generally,” a senior US official, speaking on the condition of anonymity, told reporters.

The defense sector, unsurprisingly, is thrilled. Just ask the Asia Group, a consulting firm that advises clients like General Electric, Lockheed Martin, Northrop Grumman, and Raytheon and was founded by Kurt Campbell, who’s now the Biden White House’s point person on Asia policy.

Campbell’s former firm says the time is now to invest in India. “Companies that postpone entry or expansion in India might miss opportunities to maximize their long-term returns,” Gopal Nadadur, an Asia Group executive based in India, wrote recently. “Defense and aerospace companies like Airbus, Boeing, Dassault, General Electric, General Atomics, Raytheon Technologies and Pratt & Whitney have boosted their engineering and manufacturing operations in India.”

Will defense innovation make Asia safer?

Bringing in military-tech startups and investment firms has been a core strategy of the Pentagon in recent years, and that’s also now going to play a part in the US-India relationship. On Wednesday, the Chamber of Commerce hosted what it called an “innovation bridge” — the INDUS-X event.

US and Indian startups that focus on the military, aerospace, and satellites attended, alongside venture capital firms and major defense contractors like Raytheon and Boeing. The proceedings were sponsored by General Atomics, Lockheed Martin, and one of the big Indian companies, Mahindra Defence. The INDUS-X joint initiative will be “a catalyst for India to achieve its target of $5 billion in defense exports by 2025 and for India to diversify its defense supply chain,” according to the Chamber.

One of the keynote speakers, Secretary of the Air Force Frank Kendall, told attendees that he expected “huge growth,” in the two countries’ defense partnership, “the hockey stick curve that all entrepreneurs dream of.”

Participants did not directly discuss China, according to Pushan Das of the US-India Business Council, but it was the impetus for the gathering. “The reason why we’re doing all of this — the reason why there is the US-India defense-industry road map — it is because both countries have a common threat. They face a common challenge,” he told me. “And that’s pushing the defense relationship forward.”

But the focus on business interests has often meant that less attention has been paid in the commercial community to how increased military production and surveillance technologies in India could embolden Modi.

Modi is a Hindu nationalist leader who journalist Fareed Zakaria says is responsible for the decay of Indian democracy . His attacks on political rivals, the press, and minorities call into question the strategic benefits of growing military cooperation with the country. To cite a recent example, India arrested Vivek Raghuvanshi, a contributor to the US-based outlet Defense Times, in May.

Senior Biden administration officials told a press conference that raising human rights concerns would be part of President Biden’s private conversations with Modi, but declined to provide specificity. Human rights concerns did not come up in the conversations at INDUS-X, according to Das, and Air Force Secretary Kendall did not raise them in his remarks.

Singh, who worked in the Obama Pentagon, says that pragmatism is necessary to counter China. “We look at Prime Minister Modi, like a lot of other complicated partners, be it in Southeast Asia, like Vietnam or Thailand, or in Europe, like Poland, or Hungary, or Turkey ,” he told me. “But I think we’ve reached a point where American leaders are able to talk to Indian leaders about these sorts of concerns.”

There’s also another risk of flooding India with arms that Campbell, who served in the Obama State Department, warned of in his 2016 book The Pivot: The Future of American Statecraft in Asia .

“China and India both remain under 2 percent of GDP for defense spending, while, for comparison, between 2009 and 2013, US Defense spending averaged 4.4 percent of GDP,” he wrote. “If Asian powers were to devote the same proportion to defense spending as the United States, the region would quickly become even more dangerous.”

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What US, India have agreed on: Tech and defence partnerships, initiatives on visas and education, and more

Key takeaways from the joint statement on prime minister narendra modi's official state visit to the united states, issued by the two countries..

india us deals modi visit

The Joint Statement issued by India and the United States affirmed a vision of the two countries as “among the closest partners in the world — a partnership of democracies looking into the 21st century with hope, ambition, and confidence”.

The Joint Statement affirmed that “no corner of human enterprise is untouched by the partnership between our two great countries, which spans the seas to the stars”. These are the key points from the 58-paragraph Joint Statement, and a ‘Fact Sheet’ issued by the White House.

india us deals modi visit

Technology partnership

This has eight key elements:

Strengthening semiconductor supply chains : Micron Technology , with support from the India Semiconductor Mission, will invest more than $800 million toward a new $2.75 billion semiconductor assembly and test facility in India. Applied Materials will build a Semiconductor Centre for Commercialization and Innovation in India to strengthen the two nations’ semiconductor supply chain diversification. And Lam Research will train 60,000 Indian engineers through its “Semiverse Solution” to accelerate India’s semiconductor education and workforce development goals.

Critical Minerals Partnership : India has become the newest partner of the US-led Minerals Security Partnership (MSP) that has been established to accelerate the development of diverse and sustainable critical energy minerals supply chains globally. The MSP , which started in june 2022, has 12 other partner countries, plus the European Union. India’s Epsilon Carbon Limited will invest $650 million in a greenfield electric vehicle battery component factory, which will be the largest ever Indian investment in the US electric vehicle battery industry.

Advanced Telecommunications : India and the US have launched public-private Joint Task Forces on the development and deployment of Open RAN systems and on advanced telecoms research and development. India’s Bharat 6G and the US Next G Alliance will co-lead this public-private research. This work will reduce costs, increase security, and improve resiliency of telecommunication networks.

Festive offer

NASA- ISRO collaboration in space : India has signed the Artemis Accords , joining 26 other countries committed to peaceful, sustainable, and transparent cooperation that will enable exploration of the Moon, Mars, and beyond. NASA will provide advanced training to Indian Space Research Organization (ISRO) astronauts with the goal of launching a joint effort to the International Space Station in 2024. NASA and ISRO are also developing a strategic framework for human spaceflight cooperation by the end of 2023.

Quantum, Advanced Computing, and Artificial Intelligence : The two countries have established a Joint Indo-US Quantum Coordination Mechanism to facilitate joint research between the public and private sectors across the two countries. They have also signed an implanting arrangement to support joint research on quantum, Artificial Intelligence (AI), and advanced wireless technologies.

Cutting-edge Research : The US National Science Foundation has announced 35 joint research collaborations with India’s Department of Science and Technology, and signed a new cooperative arrangement with India’s Ministry of Electronics and Information Technology on emerging technologies.

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Innovation Handshake : To support the US-India Initiative on Critical and Emerging Technology (iCET), the US-India Commercial Dialogue will launch a new “Innovation Handshake” to connect the startup ecosystems of the two countries.

Fiber Optics Investments : India’s Sterlite Technologies Limited has invested $100 million in the construction of an optical fibre cable manufacturing unit near Columbia, South Carolina, which will facilitate $150 million in annual exports of optical fibre from India.

Defence partnership

The highlight of the next-generation defence partnership is the deal to co-produce GE’s F414 combat aircraft engines in India. There are several other initiatives as well. Some of them are:

GE F414 Engine Co-Production : The Joint Statement welcomed the groundbreaking proposal by General Electric to jointly produce the F414 jet engine in India . GE and Hindustan Aeronautics Limited (HAL) have signed a MoU, and a manufacturing licence agreement has been submitted for Congressional Notification. The first-of-its-kind initiative to manufacture F414 engines in India will enable greater transfer of US jet engine technology than ever before.

General Atomics MQ-9Bs : India intends to procure armed MQ-9B SeaGuardian UAVs . The drones will increase India’s intelligence, surveillance, and reconnaissance capabilities.

Service and repair of US Navy ships : The US Navy has concluded a Master Ship Repair Agreement (MSRA) with Larsen and Toubro Shipyard in Kattupalli ( Chennai ) and is finalizing agreements with Mazagon Dock Limited ( Mumbai ) and Goa Shipyard (Goa). These agreements will allow mid-voyage US Navy ships to undergo service and repair at Indian shipyards.

More robust defence cooperation : The two countries advanced steps to operationalize tools to increase defence cooperation. They have resolved to strengthen undersea domain awareness cooperation, and agreed to place three Indian liaison officers in US commands for the first time. The US and India have also begun negotiations for a Security of Supply Arrangement and Reciprocal Defence Procurement Arrangement that will enable the supply of defence goods in the event of unanticipated supply chain disruptions.

Defence “Innovation Bridge” : The India-US Defence Acceleration Ecosystem (INDUS-X) — a network of university, incubator, corporate, think tank, and private investment stakeholders — was inaugurated on June 21, 2023. This programme will facilitate joint innovation on defence technologies and accelerate the integration of India’s private sector defence industry with the US defence sector.

People-centric efforts

The Joint Statement mentions initiatives on visas and student exchanges. It also refers to the historic aviation deal between Air India and Boeing to acquire more than 200 American-made aircraft, and the efforts to resolve trade issues between the two countries.

Domestic visa renewals : The State Department will launch a pilot this year to adjudicate domestic renewals of certain petition-based temporary work visas, including for Indian nationals, who will no longer be required to leave the country for renewal in eligible categories. This will be implemented for an expanded pool of H1B and L visa holders in 2024, with the aim of broadening the programme to include other eligible categories.

New consulates :The US intends to open new consulates in Bengaluru and Ahmedabad , and India looks forward to opening its consulate in Seattle later this year, and to announcing two new consulates in the US, the Joint Statement said.

Student exchanges and scholarships : The US last year issued a record 125,000 visas to Indian students, and Indians are on track to become the largest foreign student community in the US, with a 20% increase last year alone. India and the US have launched a new Joint Task Force of the Association of American Universities and leading Indian educational institutions, including the IITs. Additional Fulbright-Kalam Climate Fellowships for research, administered by the US-India Educational Fund, will advance cooperation between leading scholars in India and the US on climate change. The US is also enabling up to 100 additional US undergraduate students to study or intern in India via the Benjamin A Gilman International Scholarship Program.

Agreement on cultural property : The US and India are continuing negotiations for a Cultural Property Agreement which would help to prevent illegal trafficking of cultural property from India and enhance cooperation on the protection and lawful exchange of cultural property.

Cooperation in the Indo-Pacific

Under the heading ‘Leading on the Global Stage’, the Joint Statement refers to various strategic initiatives taken by the two countries.

Indo-Pacific and Indian Ocean: The US will join the Indo-Pacific Oceans Initiative, a regional initiative inaugurated by Prime Minister Modi in 2015 to promote a safe, secure, and stable maritime domain and promote its conservation and sustainable use. India will continue to participate as an observer in the Partners in the Blue Pacific. The US and India will hold an Indian Ocean Dialogue with experts and stakeholders from across the Indian Ocean region to promote greater regional coordination.

Sustainable development

Energy collaboration : India and the US will continue to work together to achieve their national climate and energy goals. The US welcomes India’s decision to co-lead the multilateral Hydrogen Breakthrough Agenda to make affordable renewable and low carbon hydrogen globally available by 2030, the Joint Statement said.

Green technology : The Joint Statement mentioned the two countries’ commitment to creating innovative investment platforms that will lower the cost of capital and attract international private finance at scale for renewable energy, battery storage, and emerging green technology projects in India. It also refers to initiatives taken to decarbonise the transportation sector, and the Global Biofuels Alliance, which has been established by India with the US as a founding member.

Initiatives on health

Fighting cancer and diabetes : The US National Cancer Institute will foster collaboration between US and Indian scientists through two new grants to develop an Artificial Intelligence (AI)-enabled digital pathology platform, which will be utilized for cancer diagnosis, prognosis, and prediction of therapeutic benefit, as well as AI-based automated radiotherapy treatment for cancers of the cervix, head, and neck.

The US National Institute of Diabetes and Digestive and Kidney Diseases will also sign an agreement with the Indian Council of Medical Research to further basic, clinical, and translational research on diabetes . The United States and India will hold a US-India Cancer Dialogue, hosted by President Biden’s Cancer Moonshot, to bring experts together from both countries to identify concrete areas of collaboration to accelerate the rate of progress against cancer.

Fighting terror and drugs

The Joint Statement reiterated that the US and India stand together to counter global terrorism, and unequivocally condemn terrorism and violent extremism in all its forms and manifestations. President Biden and Prime Minister Modi reiterated the call for concerted action against all UN-listed terrorist groups including al-Qa’ida, ISIS/Daesh, Lashkar e-Tayyeba (LeT), Jaish-e-Mohammad (JeM), and Hizb-ul-Mujhahideen.

They strongly condemned cross-border terrorism, the use of terrorist proxies and called on Pakistan to take immediate action to ensure that no territory under its control is used for launching terrorist attacks. They called for the perpetrators of the 26/11 Mumbai and Pathankot attacks to be brought to justice.

The Joint Statement also said that the US and India are developing a broader and deeper bilateral counternarcotics framework to disrupt the illicit production and international trafficking of illicit drugs, including synthetic drugs, fentanyl, and precursors.

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Biden, Modi hail new era for US-India ties and tout deals

  • Deals on chips, minerals, tech, space and defense
  • Human rights, democracy in focus
  • Modi addresses press, Congress

BOYCOTTS AND WELCOME CROWDS

U.S. President Joe Biden hosts an official state dinner for India's Prime Minister Narendra Modi at the White House

NEW US-INDIA DEALS

Reporting by Nandita Bose in Washington; Additional reporting by Steve Holland, Rami Ayyub, Kanishka Singh, Patricia Zengerle, Trevor Hunnicutt and YP Rajesh; Writing by Trevor Hunnicutt and Steve Holland; Editing by Heather Timmons, Alistair Bell, Daniel Wallis, Grant McCool and Michael Perry

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Patricia Zengerle has reported from more than 20 countries, including Afghanistan, Iraq, Pakistan, Saudi Arabia and China. An award-winning Washington-based national security and foreign policy reporter who also has worked as an editor, Patricia has appeared on NPR, C-Span and other programs, spoken at the National Press Club and attended the Hoover Institution Media Roundtable. She is a recipient of the Edwin M. Hood Award for Diplomatic Correspondence.

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As Biden, Modi meet, a flurry of US and India deals

A slew of deals, including a landmark decision for GE to jointly make in India engines for fighter jets, were announced.

Seen in profile, Biden and Modi stand side by side

President Joe Biden hailed a new era in the US-India relationship, after rolling out the White House red carpet for Indian Prime Minister Narendra Modi on Thursday, touting deals on defence and commerce aimed at countering China’s global influence.

The partnership is “stronger, closer and more dynamic than at any time in history”, Biden told reporters at a joint press conference with Modi, and the economic relationship is “booming”, with trade more than doubling over the past decade.

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“A trade and investment partnership between India and America is important not only for our two countries but for the global economy as well,” Biden said. “We have decided to resolve long pending trade-related issues and make a new beginning,” he added.

Modi touted “a new chapter” to the countries’ “strategic partnership” after the two leaders emerged from Oval Office talks where the countries’ differences on Russia and human rights were on the table.

Washington wants India to be a strategic counterweight to China and sees it as a critical partnership, although some analysts and former officials question India’s willingness to stand up collectively to Beijing over issues such as Taiwan. Washington has also been frustrated by India’s close ties with Russia amid Moscow’s war in Ukraine.

Modi is seeking to raise the influence that India, the world’s most populous country at 1.4 billion, has on the world stage in the wake of strained ties with neighbouring China.

“We have also decided that in the midst of global uncertainties, India and America will, as trusted partners, create reliable, secure and resilient global supply chains and value chains as well,” he said.

For Biden, the benefits of engaging with the world’s most populous democracy at a moment of increased tensions with rival China have outweighed both the costs and risks.

“The challenges and opportunities facing the world in this century require that India and the United States work and lead together, and we are,” Biden said as he welcomed Modi to the White House.

A festival-like morning ceremony at the White House featured a cappella group Penn Masala performing renditions of songs by the American group Maroon 5 as well as from movies featuring Bollywood superstar Shah Rukh Khan.

After Modi addresses Congress, Biden is set to host the Indian leader for a glittering state dinner on Thursday evening.

US-India deals

Biden administration officials say sweeping agreements to be announced on semiconductors, critical minerals, technology, space cooperation and defence cooperation and sales will ring in a new era in relations between the two countries.

Some are aimed at diversifying supply chains to reduce dependence on China. Others are aimed at cornering the market in advanced technologies that may feature on the battlefields of the future.

The US has also sought to address China’s rising influence in the Indo-Pacific region by bolstering defence ties with countries like India, Japan, Australia, South Korea as well as countries across the Pacific and Southeast Asia.

Here’s a round-up of deals that have been announced or will be:

General Electric (GE) has signed an agreement with India’s state-owned Hindustan Aeronautics Ltd (HAL) to jointly make engines in India to power fighter jets for the Indian Air Force.

The historic deal is the most significant one of all the announcements so far as the US is willing to give India access to critical American technologies such as F414, which it rarely shares with non-allies.

For India, the deal is important as it can help it meet its target with homemade jets powered by homemade engines to keep costs under control and also to avoid becoming dependent on a foreign supplier.

The GE engine in question is called the F414 and it has been used by US Navy aircraft for more than 30 years. HAL uses F414’s predecessor to power its indigenous light combat aircraft called “Tejas”. India is now also working on developing the next-generation Tejas 2 which will be powered by the F414. That engine will also be used in India’s next-generation Advanced Medium Combat Aircraft.

US Navy ships in the region will be able to stop in Indian shipyards for repairs under a maritime agreement, and India will procure US-made armed MQ-9B SeaGuardian drones.

US chipmaker Micron Technology will invest more than $800m towards a new $2.75bn semiconductor assembly and test facility in a new semiconductor testing and packaging unit, to be built in Modi’s home state of Gujarat.

Applied Materials has announced it will build a Semiconductor Centre for Commercialization and Innovation in India to boost’ semiconductor supply chain diversification. And, Lam Research will train 60,000 Indian engineers to accelerate India’s semiconductor education and workforce development goals.

“By increasing our cooperation in fields such as artificial intelligence, semiconductors, space, quantum and telecom, we are creating a strong and futuristic partnership,” Modi said.

The US will also make it easier for skilled Indian workers to get and renew US visas.

India also agreed to join the US-led Artemis Accords on space exploration and to work with NASA on a joint mission to the International Space Station in 2024.

The flurry of agreements comes as some lawmakers have raised serious concerns about democratic backsliding in India.

Several progressive Democrats – including US Representatives Alexandria Ocasio-Cortez, Ilhan Omar and Rashida Tlaib – have said they would boycott Modi’s address to Congress.

Modi will address US CEOs at a reception on Friday, as American companies plan new investments in India.

Report: Why India and the U.S. Are Closer Than Ever

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Why India and the U.S. Are Closer Than Ever

Defense deals and tech ties underpin modi’s visit to washington..

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“My dream is that in 2020, the two closest nations in the world will be India and the United States,” then-Sen. Joe Biden said on a visit to New Delhi in 2006. They may not be quite there yet, but Biden is doing everything to ensure they end up much closer—especially economically and militarily—after Indian Prime Minister Narendra Modi visits next week.

Washington is rolling out the red carpet for Modi, hosting him for a state dinner, the Biden administration’s third such visit after welcoming French President Emmanuel Macron and South Korean President Yoon Suk-yeol within the past year. Modi will also address a joint session of Congress, his second time doing so as Indian prime minister.

It’s not just pomp and symbolism, however. The United States wants to bring India deeper into its manufacturing and defense orbit, with the added benefit of helping wean New Delhi’s military off Russia and U.S. supply chains off China. Although both sides have been tight-lipped on planned announcements, a number of expected agreements on semiconductor chips and fighter jet engines have been in the works for months, bolstered by visits to New Delhi by Secretary of Defense Lloyd Austin and National Security Advisor Jake Sullivan in the weeks leading up to Modi’s trip. This week, the two sides reportedly sealed a deal for India to buy more than two dozen American drones.

“While I will not spill the beans, I can tell you that the ceremonial and substantive parts of the visit will fully complement each other and will be unparalleled,” Taranjit Singh Sandhu, India’s ambassador to Washington, said at a recent event.

The India-U.S. relationship hasn’t always been smooth sailing, and potential frictions remain, but the two countries have increasingly zeroed in on an arena where they can achieve symbiosis. “If you ask me what I would bet on the most, what is that one force multiplier for this relationship, it is tech,” Sandhu said. “It is the master key to unlock the real potential in the relationship.”

Officials from both sides have spent months laying the groundwork—and acronyms. An initiative on critical and emerging technology ( iCET ), launched in late January by Sullivan and his Indian counterpart, Ajit Doval, commits to cooperation in areas such as artificial intelligence, quantum computing, space exploration, semiconductors, and defense technology. There has been more movement on the last two in particular: U.S. Secretary of Commerce Gina Raimondo and Indian Commerce Minister Piyush Goyal inked a bilateral semiconductor supply chain partnership in New Delhi in March, while Austin’s visit to New Delhi earlier this month yielded INDUS-X, or the India-U.S. Defense Acceleration Ecosystem, described by the Pentagon as a “new initiative to advance cutting-edge technology cooperation” between the two militaries.

The most significant developments are likely to take place on the defense front, particularly if recent discussions on jointly producing jet engines, long-range artillery, and military vehicles come to fruition next week, product of a yearslong rapprochement on sharing defense technology with India. “This is not just manufacturing in India, this is genuine tech transfer,” said Rudra Chaudhuri, director of New Delhi-based think tank Carnegie India. “That’s a big deal.”

In some ways, it is an opportunity for a marriage of convenience. About half of India’s military equipment is Russian-made, and although New Delhi has spent years trying to diversify that supply, Russia’s protracted war in Ukraine has increased the urgency of finding new bedfellows. Washington sees an opening.

“The one relationship which the U.S. has traditionally been wary of in closer defense ties with India has been the India-Russia partnership,” said Aparna Pande, director of the India Initiative at the Hudson Institute. “This is one chance where if India can be weaned away because of a lack of supply parts, problematic equipment, or Russia getting closer to China, [you can] maybe convince India to purchase more from the United States and U.S. partners and allies.”

China is another major source of mutual concern pushing Washington and New Delhi closer together. India’s relationship with China deteriorated earlier and far more dramatically, with military clashes on their shared border leading to an Indian purge of Chinese technology (including, notably, a TikTok ban) nearly three years ago. Chinese naval expansion into the Indian Ocean has also spooked India and reinforced the importance of the so-called Quad group of countries. The United States and its allies, meanwhile, are urgently trying to reorient and “ friendshore ” global tech supply chains to reduce dependence on China, which has spent years establishing itself as the world’s factory floor.

India presents a ready replacement in many ways, much of it stemming from its new status as the world’s most populous country. That means a large (and youthful) labor force, millions of whom are skilled engineers, and relatively low manufacturing costs that the Modi government is further bolstering with tax incentives under its signature “Make in India” program. Like China, India’s sheer size also presents a huge potential domestic market for U.S. companies, an advantage over other alternatives such as Vietnam and Mexico. If for decades dollars and cents determined the landscape of global technology production, geopolitics have become supreme.

“There’s a sense of Balkanization taking place” in the global tech supply chain, said Mukesh Aghi, CEO of the U.S.-India Strategic Partnership Forum, a Washington-based business advocacy group. “Geopolitical stress points are driving the tech agenda.”

There are still hurdles that need to be overcome, including India’s history of protectionism and red tape that has burned U.S. companies in the past and made it difficult to create the kind of manufacturing infrastructure required to rival what China has built. One large semiconductor push, a $19 billion joint venture between Indian conglomerate Vedanta and Taiwanese manufacturer Foxconn, has reportedly already been stymied by a denial of government incentives.

And while companies will ultimately have to vote with their checkbooks, Biden and Modi are sending nothing but boosterish signals.

“Remember the old saying that trade follows the flag—I think the two governments are waving the flag very mightily to show which direction industry and business ought to be going,” said Atul Keshap, a former diplomat who heads the U.S. Chamber of Commerce’s U.S.-India Business Council. “The two governments tried for a long time to figure out what government-to-government interaction would look like, and now I think they’re realizing the value of letting the private sector collaborate,” he added.

But one casualty of the Modi visit and his newfound status will likely be U.S. willingness to call out concerns about the health of India’s democracy, at least publicly. The Biden administration has been increasingly reluctant to call out Modi’s crackdowns on free speech and violence against minorities, and experts say the strategic imperatives are too great to afford antagonizing a vital partnership.

“There is a desire to emphasize the strategic and the national security imperative over the domestic imperative,” Pande said. “In the current context, India is important, and so what the U.S. is preferring to do is convey a lot of what it wants to say in private and not in public.”

Rishi Iyengar is a reporter at  Foreign Policy . Twitter:  @Iyengarish

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Joint Statement from India and the United   States

1.           Prime Minister Narendra Modi welcomed United States President Joseph R. Biden, Jr., to India today, reaffirming the close and enduring partnership between India and the United States.  The leaders expressed their appreciation for the substantial progress underway to implement the ground breaking achievements of Prime Minister Modi’s historic, June 2023, visit to Washington. 2.           The leaders called on their governments to continue the work of transforming the India-U.S. Strategic Partnership across all dimensions of our multifaceted global agenda, based on trust and mutual understanding.  The leaders re-emphasized that the shared values of freedom, democracy, human rights, inclusion, pluralism, and equal opportunities for all citizens are critical to the success our countries enjoy and that these values strengthen our relationship.  3.           President Biden lauded India’s G20 Presidency for further demonstrating how the G20 as a forum is delivering important outcomes.  The leaders reaffirmed their commitment to the G20 and expressed confidence that the outcomes of the G20 Leaders’ Summit in New Delhi will advance the shared goals of accelerating sustainable development, bolstering multilateral cooperation, and building global consensus around inclusive economic policies to address our greatest common challenges, including fundamentally reshaping and scaling up multilateral development banks. 4.           Prime Minister Modi and President Biden reaffirmed the importance of the Quad in supporting a free, open, inclusive, and resilient Indo-Pacific.  Prime Minister Modi looked forward to welcoming President Biden to the next Quad Leaders’ Summit to be hosted by India in 2024.  India welcomed the U.S. decision to co-lead the Indo-Pacific Oceans Initiative Pillar on Trade Connectivity and Maritime Transport, further to the U.S. decision to join IPOI in June 2023. 5.           Continuing to share the view that global governance must be more inclusive and representative, President Biden reaffirmed his support for a reformed UN Security Council with India as a permanent member, and, in this context, welcomed once again India’s candidature for the UNSC non-permanent seat in 2028-29.  The leaders once again underscored the need to strengthen and reform the multilateral system so it may better reflect contemporary realities and remain committed to a comprehensive UN reform agenda, including through expansion in permanent and non-permanent categories of membership of the UN Security Council. 6.           Prime Minister Modi and President Biden reaffirmed technology’s defining role in deepening our strategic partnership and lauded ongoing efforts through the India-U.S. Initiative on Critical and Emerging Technology (iCET) to build open, accessible, secure, and resilient technology ecosystems and value chains, based on mutual confidence and trust, which reinforce our shared values and democratic institutions.  The United States and India intend to undertake a midterm review of iCET in September 2023 to continue to drive momentum toward the next annual iCET review, co-led by the National Security Advisors of both countries, in early 2024. 7.           President Biden congratulated Prime Minister Modi and the scientists and engineers of the Indian Space Research Organisation (ISRO) on Chandrayaan-3’s historic landing at the south polar region of the Moon, as well as the successful launch of India’s first solar mission, Aditya-L1.  Having set a course to reach new frontiers across all sectors of space cooperation, the leaders welcomed efforts towards establishment of a Working Group for commercial space collaboration under the existing India-U.S. Civil Space Joint Working Group.  Determined to deepen our partnership in outer space exploration, ISRO and the National Aeronautics and Space Administration (NASA) have commenced discussions on modalities, capacity building, and training for mounting a joint effort to the International Space Station in 2024, and are continuing efforts to finalise a strategic framework for human space flight cooperation by the end of 2023.  India and the United States also intend to increase coordination on planetary defence to protect planet Earth and space assets from the impact of asteroids and near-Earth objects, including U.S.  support for India’s participation in asteroid detection and tracking via the Minor Planet Center. 8.           The leaders reiterated their support for building resilient global semiconductor supply chains, noting in this respect a multi-year initiative of Microchip Technology, Inc., to invest approximately US$300 million in expanding its research and development presence in India and Advanced Micro Device’s announcement to invest US$400 million in India over the next five years to expand research, development, and engineering operations in India. The leaders expressed satisfaction at the ongoing implementation of announcements made in June 2023 by U.S. companies, Micron, LAM Research, and Applied Materials.  9.           Sharing a vision of secure and trusted telecommunications, resilient supply chains, and global digital inclusion, Prime Minister Modi and President Biden welcomed the signing of a Memorandum of Understanding (MoU) between Bharat 6G Alliance and Next G Alliance, operated by Alliance for Telecommunications Industry Solutions, as a first step towards deepening public-private cooperation between vendors and operators. They further acknowledged the setting-up of two Joint Task Forces focused on collaboration in the field of Open RAN and research and development in 5G/6G technologies.  A 5G Open RAN pilot in a leading Indian telecom operator will be undertaken by a U.S. Open RAN manufacturer before field deployment.  The leaders continue to look forward to the participation of Indian companies in the U.S. Rip and Replace Program; President Biden also welcomed India’s support for a Rip and Replace pilot in the United States. 10.        The United States reiterated its commitment to working together with India in the quantum domain, both bilaterally and through the Quantum Entanglement Exchange, a platform to facilitate international quantum exchange opportunities; and welcomed the participation of India’s S.N. Bose National Centre for Basic Sciences, Kolkata, as a member of the Quantum Economic Development Consortium.  It was also recognized that the Indian Institute of Technology (IIT) Bombay joined the Chicago Quantum Exchange as an international partner. 11.        The leaders hailed the signing of an Implementation Arrangement between the U.S. National Science Foundation (NSF) and India’s Department of Biotechnology to enable scientific and technological research collaborations in biotechnology and biomanufacturing innovations.  They welcomed the call for proposals released by NSF and India’s Ministry of Electronics and Information Technology to foster academic and industrial collaboration in semiconductor research, next generation communication systems, cyber-security, sustainability and green technologies, and intelligent transportation systems. 12.        Reaffirming their commitment to building resilient technology value chains and linking defence industrial ecosystems, the leaders recommitted their administrations to promoting policies and adapting regulations that facilitate greater technology sharing, co-development, and co-production opportunities between Indian and U.S.  industry, government and academic institutions.  They also welcomed continued engagement through an inter-agency monitoring mechanism under the auspices of the bilateral Strategic Trade Dialogue, launched in June 2023. 13.        The leaders welcomed the signing of an MoU between Indian universities, represented by the Council of Indian Institutes of Technology (IIT Council), and the Association of American Universities (AAU) to establish the India-U.S. Global Challenges Institute, with a combined initial commitment of at least US$10 million.  The Global Challenges Institute will bring together leading research and higher-education institutions from across our two nations, including beyond AAU and IIT membership, to advance new frontiers in science and technology, spanning collaboration in sustainable energy and agriculture, health and pandemic preparedness, semiconductor technology and manufacturing, advanced materials, telecommunications, artificial intelligence, and quantum science. 14.        The leaders also welcomed the growing number of multi-institutional collaborative education partnerships, such as those between New York University-Tandon and IIT Kanpur Advanced Research Center, and the Joint Research Centers of the State University of New York at Buffalo and IIT Delhi, Kanpur, Jodhpur, and BHU, in the areas of critical and emerging technologies. 15.        The leaders affirmed the importance of efforts to close the gender digital divide in the digital economy, noting a G20 commitment to halve the digital gender gap by 2030 and expressed support for the Women in the Digital Economy Initiative, which brings together governments, private sector companies, foundations civil society and multilateral organizations to accelerate progress toward the closure of the digital gender divide. 16.        Prime Minister Modi and President Biden reaffirmed their commitment to deepen and diversify the India-U.S. Major Defence Partnership through expanded cooperation in new and emerging domains such as space and AI, and accelerated defence industrial collaboration. 17.        The leaders welcomed completion of the Congressional Notification process on 29 August 2023 and the commencement of negotiations for a commercial agreement between GE Aerospace and Hindustan Aeronautical Limited (HAL) to manufacture GE F-414 jet engines in India, and recommitted to work collaboratively and expeditiously to support the advancement of this unprecedented co-production and technology transfer proposal. 18.        The leaders applauded the conclusion of a second Master Ship Repair Agreement, with the most recent agreement signed by the U.S. Navy and Mazgaon Dock Shipbuilders, Ltd., in August 2023.  Both sides recommitted to advancing India’s emergence as a hub for the maintenance and repair of forward-deployed U.S. Navy assets and other aircraft and vessels.  The leaders also welcomed further commitments from U.S. industry to invest more in India’s maintenance, repair, and overhaul capabilities and facilities for aircraft. 19.        The leaders commended the India-U.S. Defence Acceleration Ecosystem (INDUS-X) team for establishing a robust collaboration agenda to harness the innovative work of the U.S. and Indian defence sectors to address shared security challenges. INDUS-X convened the inaugural Academia Start-up Partnership at IIT Kanpur, with the participation of Penn State University, and initiated the Joint Accelerator Program for Indian Startups, through a workshop led by U.S. accelerator M/s Hacking 4 Allies (H4x) and IIT Hyderabad in August 2023. Both sides also welcomed the announcement by the Indian Ministry of Defence’s Innovations for Defence Excellence and the U.S. Department of Defense’s Defense Innovation Unit to launch two joint challenges, which will invite start-ups to develop solutions to shared defence technology challenges. 20.        President Biden welcomed the issuance of a Letter of Request from the Ministry of Defence of India to procure 31 General Atomics MQ-9B (16 Sky Guardian and 15 Sea Guardian) remotely piloted aircraft and their associated equipment, which will enhance the intelligence, surveillance and reconnaissance (ISR) capabilities of India’s armed forces across all domains. 21.        Reiterating the importance of nuclear energy as a necessary resource to meet our nations’ climate, energy transition, and energy security needs, Prime Minister Modi and President Biden welcomed intensified consultations between the relevant entities on both sides to expand opportunities for facilitating India-U.S. collaboration in nuclear energy, including in development of next generation small modular reactor technologies in a collaborative mode. The United States reaffirmed its support for India’s membership in the Nuclear Suppliers Group and committed to continue engagement with like-minded partners to advance this goal. 22.        The leaders welcomed the inaugural meeting of the India-U.S. Renewable Energy Technologies Action Platform [RE-TAP], in August 2023, under which the two countries will engage in lab-to-lab collaboration, piloting, and testing of innovative technologies; collaboration on policy and planning to advance renewable energy and enabling technologies; investment, incubation and outreach programmes; and training and skill development to accelerate the uptake and adoption of new and emerging renewable technologies and energy systems. 23.        Reiterating the importance of decarbonizing the transport sector, the leaders welcomed progress to expand electric mobility in India, including joint support for a payment security mechanism financed through both public and private funds. This will accelerate the procurement of 10,000 made-in India electric buses including those for the Indian PM e-Bus Sewa program that will include the associated charging infrastructure.  The two countries are committed to working together to help diversify the global supply chain for e-mobility. 24.        India and the United States are also advancing the creation of investment platforms to lower the cost of capital and accelerate the deployment of greenfield renewable energy, battery storage and emerging green technology projects in India. Towards this end, India’s National Investment and Infrastructure Fund and the U.S. Development Finance Corporation exchanged letters of interest to each provide up to US$500 million to anchor a renewable infrastructure investment fund. 25.        The leaders lauded the settlement of the seventh and last outstanding World Trade Organisation (WTO) dispute between India and the United States. This follows the unprecedented settlement of six outstanding bilateral trade disputes in the WTO in June 2023. 26.        The leaders welcomed efforts to develop an ambitious “Innovation Handshake” agenda under the India-U.S. Commercial Dialogue, to include two anchor events in the fall (one in India and one in the United States), in which our two sides will collaborate to bring together start-ups, private equity and venture capital firms, corporate investment departments, and government officials to forge connections between the two countries’ innovation ecosystems. 27.        The leaders welcomed our growing bilateral cooperation in cancer research, prevention, control, and management, and looked forward to the launch of the India-U.S. Cancer Dialogue in November 2023. This dialogue will focus on advancing knowledge in cancer genomics, developing new diagnostics and therapeutics to enhance and strengthen cancer care including for underserved urban and rural communities.  The leaders also highlighted the upcoming U.S.-India Health Dialogue, taking place in October 2023 in Washington, D.C., underscoring their joint commitment to strengthening and facilitating scientific, regulatory, and health cooperation between our two nations. 28.        The leaders welcomed the renewal of a Memorandum of Arrangement between the U.S. Department of Defense POW/MIA Accounting Agency and the Anthropological Survey of India (AnSI) to facilitate recovery from India of the remains of fallen U.S. service members who served in World War II. 29.        Prime Minister Modi and President Biden pledged to sustain the high-level of engagement between our governments, industries, and academic institutions and realize their ambitious vision for an enduring India-U.S. partnership that advances the aspirations of our people for a bright and prosperous future, serves the global good, and contributes to a free, open, inclusive, and resilient Indo-Pacific.

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india us deals modi visit

5 key takeaways from PM Modi's US visit | OPINION

Pm modi's us visit showcased india's cultural heritage, diplomatic prowess, and its growing influence on the world stage..

Listen to Story

PM Modi and US President Joe Biden during a State Arrival Ceremony on the South Lawn of the White House. (Photo: AP/India Today)

Prime Minister Narendra Modi's recent state visit to the US has had a significant impact on India's global standing, highlighting the country's dual identity as a spiritual democracy and an economic power. From leading a record-breaking yoga event at the United Nations to forging important defence and semiconductor production deals, PM Modi's trip showcased India's cultural heritage, diplomatic prowess, and its growing influence on the world stage.

There are five important takeaways from PM Modi’s US visit that one can immediately think of, besides tons of memorable moments and gestures that will remain etched in the evolving timeline of the friendship between the two nations.

Manifesting India's cultural and spiritual leadership

PM Modi leading 177 nations in performing yoga at the United Nations on International Yoga Diwas was a historic moment, reminiscent of Swami Vivekananda's impactful speech at the World Congress of Religions in 1893. By spearheading the global embrace of India's ancient science, yoga, PM Modi not only demonstrated the country's cultural and spiritual leadership but also reinforced the concept of India as a "spiritual democracy". This concept encompasses the country's rich spiritual heritage, where diverse religious and philosophical beliefs coexist harmoniously within a democratic framework and without any discrimination.

The event not only showcased the physical and mental benefits of yoga but also highlighted India's commitment to promoting holistic well-being and inner harmony. By engaging a record number of nations in this practice, PM Modi underscored India's potential to serve as a guiding light for spiritual enlightenment and self-discovery in a world grappling with various challenges.

Countering toxic rhetoric and fostering unity

During his visit, PM Modi effectively dismantled the toxic rhetoric that democracy is in danger and that Muslims are unsafe in India. In his eloquent speech to the Senate, he emphasised India's longstanding commitment to democratic values and inclusivity. His words resonated with the audience, receiving 15 standing ovations, even from individuals with differing political ideologies. By highlighting India's pluralistic society and its respect for the rights and safety of all citizens, regardless of their religious or cultural background, PM Modi showcased India's strength as a nation that upholds the principles of democracy and fosters unity in diversity.

Strengthening defence and semiconductor production deals

The most significant economic achievements of PM Modi's visit were the strategic defence and semiconductor production deals signed between India and the US. These agreements not only enhance India's defence capabilities but also solidify its position as a reliable partner for advanced technology collaborations. The defence partnership aims to bolster India's security infrastructure and foster stronger military ties with the US. This cooperation reflects the growing trust and mutual interests shared by the two nations in maintaining regional stability and countering common security challenges.

Furthermore, the semiconductor production deals signify India's aspirations to become a global manufacturing hub for advanced technologies. By attracting investments and establishing semiconductor manufacturing units, India aims to reduce its dependence on imports and contribute to the global supply chain. These agreements align with PM Modi's vision of fostering innovation and technological advancement in India, thereby boosting economic growth and creating employment opportunities.

Moving beyond China and asserting regional dominance

US President Joe Biden's bold stance against the Chinese establishment, labelling it as a dictatorship, signifies the strengthening Indo-US axis. The increased strategic engagement between India and the US indicates a shared objective to diminish China's influence in the region and establish dominance in the Indian Ocean. This collaborative approach between the two nations aims to ensure peace, stability, and prosperity in the Indo-Pacific region, thereby positioning India as a key player in shaping the region's future.

India's strategic location and its growing economic and military capabilities make it an important partner for the US in maintaining a free and open Indo-Pacific. The focus on regional cooperation and security aligns with India's ‘Act East’ policy.

US knows Modi will be back in 2024

Finally, why would the US invest so lavishly in India when general elections are just a few months away? That’s because the US, through its multiple intelligence sources, is convinced PM Modi will retain the PM’s post handsomely.

India, with its age-old virtuous concepts of Ram Rajya and Vasudhaiva Kutumbakam, was always supposed to be the world’s biggest spiritual democracy, which it is now seen as. Its population of 140 crore is the country’s biggest capital. India, in 2047, will be in a different league, thanks to the unprecedented growth impetus generated by PM Modi.

IN THIS STORY

india us deals modi visit

PM Modi In US: Semiconductor, Jet Engine, Space Deals Sealed In Boost To Indo-American Ties

Prime minister narendra modi's state visit to the was marked by several deals to boost the economy and relations between both nations..

PM Modi In US: Semiconductor, Jet Engine, Space Deals Sealed In Boost To Indo-American Ties PM Modi In US: Semiconductor, Jet Engine, Space Deals Sealed In Boost To Indo-American Ties

Prime Minister Narendra Modi, who is on his maiden state visit to the United States, is overseeing several major deals. Among these deals, is the historic GE-HAL defence deal and the civil space exploration agreement. India and US are also likely to announce changes in visa processing procedures to make it easier for skilled workers from India to renew their work permits. PM Modi, during the state visit, met several CEOs, economists, and scientists. He also thanked US President Joe Biden for his hospitality.

Here are the highlights of the deals that have been agreed upon so far during PM Modi's visit:

Micron Technology Assures $800 Million Investment In Gujarat

Ahead of Prime Minister Modi's state visit to the US, the Cabinet approved computer storage chip maker Micron Technology's $2.7 billion plan for a semiconductor testing and packaging unit. During his visit, Modi met with Micron CEO Sanjay Mehrotra and extended an invitation to the company to enhance semiconductor manufacturing in India. The company will set up a semiconductor assembly and test plant in Gujarat. The plant will receive financial support from the Indian government and the state of Gujarat. 

"Micron Technology, with support from the Indian National Semiconductor Mission, announced an investment of more than $800 million that together with additional financial support from the Indian authorities up to a $2.75 billion semiconductor assembly and test facility in India," a senior US administration officials.

India To Sign Artemis Accords For Civil Space Exploration

PM Modi's visit will also see the signing of the Artemis Accords for civil space exploration. Under this agreement, NASA and ISRO (Indian Space Research Organisation) will collaborate on a joint mission to the International Space Station in 2024, according to the White House. The Artemis Accords, based on the Outer Space Treaty, aim to guide space exploration and cooperation.  The Artemis Accords are a non-binding set of principles that guide civil space exploration. It is a US-led effort to return humans to the moon by 2025, and ultimately expand the scope of space exploration to Mars and beyond.

New Missions In Bengaluru, Ahmedabad, Seattle To Boost Ties

The US will open consulates in Bengaluru and Ahmedabad, while India plans to establish a mission in Seattle to enhance people-to-people connections, according to a White House official. Last year, the US issued a record 1,25,000 visas to Indian students, with a 20% increase in the Indian student community. Additionally, the US Department of State will pilot a programme to process renewals of certain work visas domestically, including those for Indians. India currently has consulates in five US cities.

GE, HAL Sign Fighter Jet Deal

During Prime Minister Narendra Modi's US State visit, GE Aerospace and Hindustan Aeronautics Limited (HAL) signed an MoU to produce fighter jet engines for the Indian Air Force (IAF). The agreement includes the potential joint production of GE Aerospace's F414 engines in India as part of the IAF's Light Combat Aircraft (LCA) Mk2 programme. GE Aerospace is currently working with the US government for export authorization. H Lawrence Culp Jr, CEO of GE Aerospace, highlighted the economic and national security benefits of the collaboration. GE Aerospace's involvement in India is expected to expand with offerings for the LCA Mk1 and Mk1A aircraft, as well as the AMCA programme.

Reaper Drone Deal To Boost India's Defence Capabilities

India and the United States will announce a significant deal for the purchase of General Atomics MQ-9 "Reaper" armed drones, according to the White House. The acquisition of these drones will enhance India's national security and surveillance capabilities in the Indian Ocean and along the China border. The MQ-9 "Reaper" offers increased payload capacity and horsepower compared to its predecessor, the MQ-1 Predator, and provides long-endurance surveillance and strike capabilities. The drones have an endurance of over 27 hours, speeds of 240 KTAS, and can operate at altitudes of up to 50,000 feet. The deal, valued at around $3 billion, is expected to be announced following discussions between Prime Minister Narendra Modi and President Joe Biden.

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PM Modi at White House: From space to visa, a look at various India-US deals

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The US and India Thursday announce multiple agreements including defense, technology, microchips and visa renewal to strengthen the economic and diplomatic ties between the two countries during Prime Minister Narendra Modi’s state visit

First lady Jill Biden and President Joe Biden talk with India's Prime Minister Narendra Modi as they stand on the Blue Room Balcony of the White House (AP)

The US and India Thursday announced multiple agreements including defense, technology, microchips and visa renewal to strengthen the economic and diplomatic ties between the two countries during Prime Minister Narendra Modi’s state visit on Thursday.

Some big ticket deals — like purchase of MQ9-Reaper drones and an agreement between General Electric (GE) and Hindustan Aeronautics Limited (HAL) for the co-production of GE 414 jet engines in India are already announced.

Here's a roundup of deals: 

Memory chip deal

Micron Technology, US memory chip firm, Thursday said it would invest up to $825 million in a new chip assembly and test facility in Gujarat. The memory chip company said the total investment in the facility will be $2.75 billion. Of that total, 50% will come from the Indian government and 20% from the Gujarat government. The investment will create up to 5,000 new direct jobs, the company added.

Fighter Jets

General Electric Thursday said has signed an agreement to jointly manufacture F414 engines with Hindustan Aeronautics Ltd (HAL), state-owned Indian firm, to make engines for the Tejas light-combat aircraft, as part of an effort to improve defense- and technology-sharing.

The US is likely to make it easier for Indians to live and work in the United States. The Biden administration is set to introduce in-country renewable H-1B visas , a significant decision that would help thousands of Indian professionals staying in the country to continue with their jobs without the hassle of travelling overseas for the renewal of their work visas as part of people-to-people initiative, a senior administration official said. The much-sought-after H-1B visa is a non-immigrant visa that allows US companies to employ foreign workers in speciality occupations that require theoretical or technical expertise.

Biden and Modi are also likely to discuss a deal for MQ-9B SeaGuardian drones made by General Atomics. India will buy 31 drones made by General Atomics worth slightly over $3 billion, Bloomberg reported citing sources. The deal is expected to be announced during Modi's visit.

India, US announced to sign the Artemis Accords, a US-led alliance seeking to facilitate international collaboration in planetary exploration and research.

In a related development, ISRO will partner the NASA in sending a joint mission to the International Space Station, a permanent laboratory in space, next year. It was not immediately clear whether the joint mission would include an Indian astronaut to the space station.

HINDUSTAN AERONAUTICS

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U.S.-India relations enter a new chapter and could unlock even more tech and defense deals

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  • U.S.-India relations entered a new chapter as Prime Minister Narendra Modi and President Joe Biden announced a slew of technology and defense deals.
  • The warmer relationship could generate even more deals in the future as the two parties collaborate more.

Still, the U.S. and India are not allies and their relationship will be very different from what other countries in the region have with Washington.

U.S.-India relations entered a new chapter as Prime Minister Narendra Modi and President Joe Biden announced a slew of technology and defense deals.  

"When India and the U.S. work together on semiconductors and critical minerals, it helps the world in making supply chains more diverse, resilient and reliable," Modi said during a speech to the joint session of the U.S. Congress. "We were strangers in defense cooperation at the turn of the century, but now the United States has become one of our most important defense partners."

Former diplomats and analysts told CNBC they only expect that relationship to grow stronger and generate even more deals.

That includes more military agreements, according to Atul Keshap, president of the U.S.-India Business Council, and former charge d'affaires at the United States Embassy in New Delhi said.

"It's going to be great for democracy, great for our two countries, and frankly, great for the Indo-Pacific and the world. So I'm feeling very bullish and I'm really quite impressed by the deliverables that have been announced by both governments," he told CNBC's "Squawk Box Asia" on Friday. 

The two nations strengthened their defense partnership this week, striking deals that include building General Electric F414 jet engines in India and repairing deployed U.S. Navy ships in Indian shipyards.

"The Biden administration has placed a huge bet on the strategic and economic relationship. And that is not contingent upon India supporting the United States down the line. It's not an ally relationship, but it is one of equal partners and equal strategic interest," said Raymond Vickery, senior associate in U.S.-India policy studies at the Center for Strategic and International Studies said. 

More tech deals on the horizon

The U.S. and India are also expected to reach more deals on technology in the future, as Washington pursues "friend-shoring" — a strategy in which it diversifies away from China and taps into the potential of other countries in the region.

"India needs cutting edge technology. And I think Americans have become much more open about sharing those critical technologies and moving in a direction, which also helps India build its own defense manufacturing base," said Harsh V. Pant, vice president of studies and foreign policy at Observer Research Foundation, a Delhi-based think tank.

The U.S. and India agreed to work together across space and artificial intelligence, while also collaborating to secure resilient critical minerals supply chains.

Modi's U.S. visit: Both countries got what they wanted, says former Indian ambassador

"These are bound to lead to further deals [as] the habit of partnership and confidence in the relationship grows further," said Arun Singh, non-resident senior fellow at Carnegie India. 

"The U.S. understands that the human tech capital is a very important part of U.S. global leadership in innovation," said Singh, who previously served as India's ambassador to the United States. 

"Indian origin tech entrepreneurs and Indian origin CEOs were an integral part of U.S. leadership in innovation," he said, adding that Modi's state visit has further cemented U.S. investments in Indian critical technology areas. 

Don't expect a free-trade agreement soon

The joint statement noted Modi "expressed India's interest towards being recognized as a Trade Agreements Act-designated country by the United States to further enhance the integration of both economies and to further promote trade and investment between two countries."

Despite the cozier relationship, ORF's Pant said a free-trade agreement is unlikely in the short to medium term.

"Comments from both sides of the political aisle show that there is no real willingness to move forward on free-trade agreements … That seems to be the bottleneck at the moment," he said.

Expect more military cooperation between the U.S. and India, says U.S.-India Business Council

Similarly, former ambassador Singh said "the U.S. is also reluctant to do any such agreements till it has improved its infrastructure and enhanced the competitiveness of the American worker." 

Still, the U.S. and India have shown a willingness to improve their trade relationship. Both parties agreed to end six outstanding disputes at the World Trade Organization.

— CNBC's Naman Tandon contributed to this report.

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The Associated Press

India's Modi arrives in the UAE on his seventh trip to a nation that is home to millions of Indians

D UBAI, United Arab Emirates (AP) — Indian Prime Minister Narendra Modi arrived Tuesday in the United Arab Emirates on his seventh trip to the nation, feted by tens of thousands of his countrymen ahead of elections back home in the coming months.

Modi was met on landing in Abu Dhabi by Emirati President Sheikh Mohammed bin Zayed Al Nahyan, a man he repeatedly has called his brother while working to bolster ties between the Arabian Peninsula nation that is home to millions of Indians. The two leaders walked past an honor guard before sitting down for their meeting, which saw bilateral agreements signed between the nations.

Modi lauded “our closeness and how we have moved forward in every field.”

He added: “Brother, it is also a matter of happiness that we are going to do (a) bilateral investment treaty. This is also going to have a long lasting impact.”

The two sides also discussed energy issues. India remains a key buyer of Emirati oil and now is looking at the possibility of long-term contracts for liquefied natural gas as well, a statement from the Indian delegation said.

“The UAE and India are united by our shared keenness to develop the bilateral strategic partnership to achieve further progress and build a better future for our peoples,” Sheikh Mohammed said on X, formerly Twitter.

Tuesday night, tens of thousands of Indians crowded into Zayed Sports City Stadium to see Modi. Only Indian nationals were being permitted to attend the event in Abu Dhabi, organizers said.

“You have created a new history in Abu Dhabi," Modi said. “You have come from all corners of UAE, and different states of India, but the hearts of everyone are connected.”

Modi's arrival came as Indian police on Tuesday used tear gas and detained some farmers who clashed with them and tried to break barricades, blocking their way to New Delhi to demand guaranteed crop prices . In 2021, farmers camped for months in the Indian capital after Modi withdrew controversial agriculture laws that had triggered the earlier protests .

The protests could pose a significant challenge for Modi and his governing Bharatiya Janata Party ahead of the coming elections in India, the world's largest democracy. However, Modi is widely expected to win a third term.

Of the over 9 million people living in the UAE, India estimates more than 3.5 million are Indian expatriates, making them the largest national group of people in the country, outnumbering even Emirati citizens. While many are low-paid laborers, there are a growing number of white-collar professionals and multiple generations of Indian families.

Modi’s visit highlights the nations’ long-standing economic and historic ties, from spice selling and gold smuggling in the UAE’s formative years to tens of billions of dollars' worth of annual bilateral trade today.

The countries signed a free trade deal in 2022 aimed at doubling their bilateral trade to $100 billion. The countries have agreed to allow India to settle some payments in rupees as opposed to dollars, lowering transaction costs.

The relationship also underscores the Emirates’ realpolitik foreign policy. The UAE has embraced Modi as Muslims in India increasingly come under attack by Hindu nationalist groups. Modi received the Emirates’ top civilian honor in 2019 even as he stripped statehood from the disputed Muslim-majority region of Kashmir .

Modi’s original visit to the Emirates in 2015 was the first by an Indian prime minister in 34 years.

Modi also will address the World Governments Summit in Dubai and inaugurate a new stone-carved Hindu temple near Abu Dhabi on Wednesday while in the UAE. He'll then travel on to Qatar.

Flower petals are thrown to welcome the Indian Prime Minister Narendra Modi, wearing a waistcoat, as he arrives with Assam Chief Minister Himanta Bishwa Sarma, to his right, to address a public rally in Guwahati, India, Sunday, Feb. 4, 2024. (AP Photo/Anupam Nath)

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The sale of 31 MQ9-B SkyGuardian Drones to India is expected to be fast-tracked without objection from lawmakers. The proposed deal includes technology and equipment and was announced by US President Joe Biden during Prime Minister Narendra Modi's visit.

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