By: Rakesh Malhotra, President, Global Indian Diaspora Foundation, USA

As the global political and economic center of gravity continues to shift toward the Indo-Pacific, the partnership between India and the United States has taken on new urgency and unparalleled significance. No longer a transactional relationship marked by cautious diplomacy, it is now a dynamic and multidimensional alliance—firmly rooted in shared democratic values. This common ground forms the strong foundation of the India-U.S. partnership.

In recent years, this relationship has grown into a full-spectrum strategic partnership that helps write the rulebook for the 21st century. This partnership’s sheer breadth and ambition underscore a fundamental truth: India and the U.S., as the world’s largest democracies, are uniquely positioned to lead in a world marked by geopolitical uncertainty, technological disruption, and climate imperatives. Their democratic values and leadership provide a reassuring beacon in these uncertain times.

Trade: The economic backbone of a strategic vision

Trade forms the bedrock of the bilateral relationship, with two-way goods and services trade reaching a record $190 billion in 2023, a dramatic rise from $36 billion just two decades ago and targeting $500 billion by 2030; this partnership now anchors 21st-century geopolitics through three transformative pillars: economic codependence, defense-industrial integration, and technological co-creation. This surge is not merely a reflection of economic interdependence but of strategic convergence.

U.S. companies view India as a reliable partner and an alternative to China in the global value chain. India has streamlined investment norms, introduced production-linked incentives, and established special economic zones to attract American capital.

The U.S.-India Trade Policy Forum has become instrumental in resolving market access issues, aligning standards, and supporting digital trade. Meanwhile, growing collaboration in e-commerce, logistics, and digital payments points to the depth of economic synergy.

Technology: Forging the future together

Technology collaboration has emerged as a cornerstone of the partnership, accelerated by the 2022 launch of the U.S.-India Initiative on Critical and Emerging Technology (iCET). This bilateral initiative covers frontier domains such as semiconductors, artificial intelligence (AI), quantum computing, and 5G/6G infrastructure.

India’s $10 billion Production-Linked Incentive (PLI) scheme in semiconductors has already attracted major U.S. players like Micron, which is investing $2.75 billion in a chip assembly and testing plant in Gujarat. Similarly, joint research initiatives between the U.S. National Science Foundation and India’s Department of Science and Technology channel over $50 million into collaborative innovation in AI and quantum sciences.

In space, NASA and ISRO are co-developing the NISAR satellite, a landmark mission to monitor Earth’s ecosystem and climate. Meanwhile, the two countries have transitioned from dialogue to joint operations in cybersecurity, sharing threat intelligence and fortifying digital infrastructure.

Health: Building resilience through collaboration

The COVID-19 pandemic proved to be a crucible for Indo-U.S. cooperation in healthcare. It catalyzed new engagement models across public health, biotechnology, telemedicine, and pharmaceutical manufacturing. Agreements now support U.S. investment in India’s pharmaceutical sector, particularly API (active pharmaceutical ingredient) production, to reduce overdependence on Chinese suppliers.

Hackensack Meridian Health’s partnership with Apollo Hospitals, for instance, is paving the way for collaborative telehealth solutions, clinical research, and workforce training. American regulatory expertise and technology and India’s cost-effective scalability create a symbiotic advantage.

Congressman Ami Bera (D-CA), a physician and senior House Foreign Affairs Committee member, aptly remarked, “The future of global health security depends on robust U.S.-India cooperation, from vaccine development to digital health platforms.”

Clean energy: The green alliance

Few areas exemplify the forward-looking nature of the India-U.S. partnership more than clean energy. Under the U.S.-India Climate and Clean Energy Agenda 2030 Partnership, both nations have committed to an ambitious roadmap involving green hydrogen, solar energy, and grid modernization.

India’s $2 billion National Green Hydrogen Mission has created fertile ground for U.S. companies like Cummins and Plug Power to develop hydrogen electrolyzers and fuel cell technologies with Indian partners. American firms are also investing in solar manufacturing; First Solar is constructing a $700 million plant in Tamil Nadu with sustainable, low-carbon processes.

USAID and the U.S. International Development Finance Corporation (DFC) have pledged over $1 billion in clean energy investments to support rural electrification, electric vehicle infrastructure, and climate-smart urban planning.

Defense: Co-developing security for a shared future

From being arms buyers and sellers, India and the U.S. are now co-developers and co-producers in defense. The defense trade has surpassed $25 billion, complemented by deep interoperability and joint exercises.

The 2023 establishment of INDUS-X—a defense innovation bridge between India’s iDEX and America’s DIU—fosters joint R&D in battlefield AI, drones, and secure communications. The agreement between General Electric and Hindustan Aeronautics Ltd. to co-produce GE F414 jet engines in India is emblematic of this new era.

Joint military drills like Yudh Abhyas and Malabar have built trust and interoperability, while logistics pacts like LEMOA and BECA allow seamless operational coordination. India’s entry into the Combined Maritime Forces and enhanced Quad engagement further underscore its emergence as a net security provider in the Indo-Pacific.

Strategic realignment: A shared vision in a multipolar world

Strategically, the partnership helps both nations diversify away from China-centric dependencies. India benefits from technology transfer, enhanced global standing, and market access. The U.S. gains a stable partner in Asia, a counterweight to Beijing’s assertiveness, and access to a large, innovation-driven market.

By investing in semiconductor supply chains, vaccine manufacturing, and cybersecurity, the two countries are building parallel economic and technological resilience architectures. This alignment is not aimed at containment but at creating an open, rules-based international order.

Navigating the challenges

Despite robust momentum, the road is not without hurdles. Regulatory bottlenecks, inconsistent intellectual property frameworks, and digital data localization norms pose persistent challenges. Bureaucratic inertia on both sides can slow execution.

Yet both governments are working to address these frictions. High-level dialogues are tackling standards harmonization, investment facilitation, and export controls. The private sector, particularly in tech and clean energy, is proving to be a catalyst for acceleration.

Voices from the Ecosystem

Industry leaders are optimistic. A senior executive at a leading U.S. semiconductor firm commented, “This is no longer about just entering markets; it’s about building the future together.” Indian entrepreneurs echo this sentiment. “Partnerships with American firms have helped us scale globally while maintaining our innovation edge,” said the CEO of a Bengaluru-based energy startup.

Defense officials stress strategic trust. “We are building interoperability, not just in weapons but in doctrine and mindset,” notes a retired Indian admiral. That’s what true partnership looks like.”

A defining axis for the century

President Joe Biden put it succinctly during Prime Minister Narendra Modi’s 2023 visit: “The partnership between India and the United States is among the most consequential in the world.”

Indeed, this partnership is no longer a matter of choice; it is a necessity dictated by the imperatives of our time. It embodies a shared vision of prosperity, peace, and progress for the Indo—Pacific and the global community.

The India-U.S. strategic partnership is not merely a bilateral arrangement but a global blueprint for democratic collaboration in an age of polycrisis. As Washington and New Delhi work hand-in-hand to shape the new world order, this partnership will continue to serve as a beacon of hope, resilience, and innovation.

In an increasingly complex world, the arc between India and the United States may well define the trajectory of the 21st century.

About the Author:
Rakesh Malhotra is the President of the Global Indian Diaspora Foundation, based in Chicago, IL. The Foundation fosters economic and cultural ties between the United States and India.