As Biden and Modi meet, a flurry of accords between the US and India are being signed

23 Jun 2023 , 12:19 PM

Following their meeting on Thursday in Washington, US President Joe Biden and Indian Prime Minister Narendra Modi were expected to unveil a number of agreements that would deepen their countries’ diplomatic and economic connections and emphasize fresh private-sector investments.

Indians will find it simpler to live and work in the US under the Biden administration. According to one report, the State Department may reveal as soon as Thursday that a small number of Indians and other foreign employees on H-1B visas will be able to renew their visas domestically in the US as part of a trial program that may be expanded in the next years.

New consulates will be established by the United States in Bengaluru and Ahmedabad. In addition to announcing the opening of two new consulates in the United States, India is opening a new consulate in Seattle this year.

Micron Technology, a US manufacturer of memory chips, announced on Thursday that it would invest up to $825 million in Gujarat to build its first factory there. According to Micron, the overall investment in the factory will be $2.75 billion with help from the federal government and the state of Gujarat. Of that, 20% will come from the Gujarat state and 50% will come from the federal government.

US semiconductor tool maker Applied Materials (AMAT.O) announced on Thursday that it will invest $400 million over four years in a new engineering centre in India.

According to Katherine Tai, the US Trade Representative, six pending disputes at the WTO will be resolved between the two countries. India also consented to eliminate retaliatory tariffs on US goods, such as chickpeas and apples, which it had placed in response to the US Section 232 national security restrictions on steel and aluminum.

In order to establish vital energy mineral supply chains, India joined the Minerals Security Partnership (MSP), a partnership sponsored by the US. India will join the European Union and 12 other partners.

A greenfield facility making electric vehicle battery components will receive $650 million from India’s Epsilon Carbon Limited, which will also hire around 500 people over the next five years.

The US solar energy supply chain will get up to $1.5 billion in investments from a new company funded by Indian solar panel manufacturer Vikram Solar Ltd (VIKO.NS), starting with the construction of a factory in Colorado the following year. The newly established business, VSK Energy LLC, will support efforts by the US to develop a clean energy manufacturing industry that can compete with China.

The aerospace division of General Electric announced on Thursday that it has signed a contract to produce fighter aircraft engines for the Indian Air Force with state-owned Hindustan Aeronautics Ltd. of India. According to GE Aerospace, the ‘historical’ agreement also covers the prospective joint production of F414 engines in India, which will power Tejas fighter fighters.

Earlier this month, sources told Reuters that India’s defence ministry had approved the purchase of armed MQ-9B SeaGuardian drones. India will spend just over $3 billion to purchase 31 General Atomics drones.

According to a joint statement, the MQ-9Bs would be assembled in India, and US maker General Atomics will also open a new facility there.

India committed to cooperate with NASA on a combined mission to the International Space Station in 2024 and to join the US-led Artemis Accords on space exploration.

In order to encourage collaborative research between the public and business sectors in both countries, India and the United States developed the Joint Indo-US Quantum Coordination Mechanism.

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