The Harvard Business Review says, “India shines as a promising alternative in supply chains, innovation hubs, and joint-ventures. Both countries need to invest in creating a technology corridor between the two countries. That means removing trade barriers, but it also means a mindset shift for U.S. companies. They need to think of India not just as a source of labor arbitrage, but as a true innovation partner.”
The publication suggests that India needs to become a stronger innovator of technology, and move up the value chain in both software and hardware. There should be a closer, deeper relationship at the government and the private sector level.
In the current new era of economic relations, referred to as Re-globalization by the Harvard Business Review, India will need to choose whether it wants to prioritize China or the U.S. in matters of technology.
New Delhi has shown strong signs of positive collaboration between the U.S. and India. Biden’s national security advisor, Jake Sullivan, and India’s National Security Advisor, Ajit Doval launched the United States-India initiative on Critical and Emerging Technologies in January 2023.
India is poised to be an increasingly influential economic actor, and its growth can help compensate for America’s loss of trade with China under re-globalization.
As Indian companies gain more access to American-protected technologies such as semiconductors, they will also begin innovating on them.
Business leaders in the United States should view India as being a genuine hub of innovation, and encourage increased collaboration with business leaders in India. Policymakers in both countries should work to reform trade policies.
Indian policies toward the outside world are overly protectionist, and legal codes are too convoluted for foreigners to navigate.
As a first step, the United States must openly communicate the path for reduced controls toward India, and India should dismantle barriers through exceptions for American technology companies to enable true partnerships to form. It is in the two countries’ interests to develop a deeper relationship, share technology, expand trade, and build trust.
