India-US ties enter new phase with AI, biotech and chip collaboration

India's ambassador to the US said biotechnology, artificial intelligence and semiconductors will shape the next phase of bilateral cooperation. His remarks linked India's economic rise and supply chain ambitions to a deeper strategic partnership with Washington.

In Short

• India expects its economy to reach USD seven trillion by decade-end
• Kwatra said domestic demand drives India’s sustained growth above seven per cent
• Atmanirbhar Bharat aims for competitive manufacturing without turning inward or insular

Emerging technologies will shape the next phase of India-US cooperation, India’s Ambassador to the US Vinay Mohan Kwatra said, identifying biotechnology, artificial intelligence and semiconductors as priority sectors. He said India’s economic rise is becoming more closely linked with global prosperity, making international partnerships increasingly important.

Speaking at the USISPF Leadership Summit in Washington, Kwatra said India had positioned itself as a preferred destination for companies looking to diversify production and supply chains beyond traditional manufacturing hubs. He said India, now a USD 4.3 trillion economy, was on course to become a USD seven trillion economy by the end of the decade, around USD 14 trillion by the middle of the 2030s, and between USD 25 trillion and USD 30 trillion by 2047.

Kwatra said India had increased investments in strategic sectors such as semiconductors, electronics, artificial intelligence, clean energy and defence manufacturing, strengthening its role in global value chains. He described India as an “indispensable anchor” of global economic growth and stability at a time of rising geopolitical uncertainty and supply chain disruptions. According to him, India’s economic transformation had placed it at the centre of the evolving global order, making it a trusted growth engine and strategic partner for both advanced and emerging economies.

“What that has meant domestically for us in India under the leadership of Prime Minister since 2014, has been a series of economically transformative measures on the ground, which have resulted in our consistently high growth of seven plus per cent, which is uniquely driven by domestic demand,” he said. Referring to the government’s vision of Atmanirbhar Bharat, Kwatra said it was not an inward-looking policy, but one aimed at creating globally competitive manufacturing and resilient supply chains. “The prime minister has propounded... a mixture of self-reliance and self-sufficiency, but an ecosystem which has positive externalities, which is not insular in nature,” Kwatra said.

Kwatra said India’s growth story and its push in sectors such as biotechnology, artificial intelligence and semiconductors were opening up a new phase in India-US ties, while also reinforcing the country’s role in global manufacturing, supply chains and economic stability.

With PTI Inputs

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