“Strategic” Business Between India and USA: from Semiconductors to Defense

Indian Prime Minister Narendra Modi’s visit to the United States is laying the groundwork for important trade agreements with strategic meaning.

Modri has met with Joe Biden over the past few hours, outlining a long series of cooperation that will be critical to strengthening the relations between the two powers. This particularly involves cooperation in the field of technology and defense.

Micron, an American semiconductor giant that recently announced new investment in China, would also be ready for huge investment in India. The prospect apparently is to reduce dependence on the Chinese dragon in this kind of strategic sector. There are talks of a new $2.7 billion factory.

Even more important, from an economic and strategic point of view, is New Delhi’s purchase of General Atomics combat drones, which complements another billion-dollar agreement to build in India the General Electric F414 engines that will then be installed on Indian fighter jets. Although they are now being replaced by General Electric’s new “adaptive” engines, such a move clearly suggests trust and an even closer connection between the two countries.

At a time when relations between New Delhi and the Dragon are particularly cold, economic agreements with the US clearly have a strategic importance. The same can be said about Russia, on which India has historically depended for military supplies.