India, US Sign Agreement On Semiconductor Supply Chain
After a three-year hiatus, the India-USA Commercial Dialogue was relaunched with a strategic outlook and a focus on supply chain resiliency and diversification as well as new emerging areas. It was at this time that India and the US signed an MoU on the semiconductor supply chain and innovation partnership.
During today’s dialogue in New Delhi, US Secretary of Commerce Gina M. Raimondo and Union Minister of Trade and Industry Piyush Goyal signed the agreement.
In February 2019, the most recent India-US Commercial Dialogue took place. Since then, due to the pandemic and other factors, it could not be held.Prior to its official launch on November 9, 2022, the India-US CEO Forum was soft-launched by the Indian Minister of Commerce and Industry and the US Secretary of Commerce via videoconference. Its key objectives included improving supply chain resilience, enhancing energy security, lowering greenhouse gas emissions overall, advancing inclusive digital trade, and facilitating post-pandemic economic recovery, particularly for small businesses.
In light of the US CHIPS and Science Act and India’s semiconductor Mission, the Agreement aims to create a collaboration mechanism between the two governments on supply chain resiliency and diversity for semiconductors.
Through conversations on many parts of the semiconductor value chain, it intends to utilise the complementary strengths of both nations, facilitate commercial opportunities, and support the growth of semiconductor innovation ecosystems. The Agreement aims to foster talent and skill development as well as research and development that is mutually beneficial.
US Secretary of Commerce Gina Raimondo is in New Delhi at the invitation of Piyush Goyal, Union Minister of Commerce and Industry, according to a statement from the commerce ministry.
According to a statement from the ministry of commerce and industry, India is the US’s ninth-biggest trading partner while the US is India’s largest trading partner and top export market.
In the calendar year 2022 (CY2022), bilateral trade in goods experienced strong growth, topping USD 131 billion in goods, more than doubling from 2014 (in 8 years), while total trade in goods and services is anticipated to surpass USD 180 billion. According to a statement from the ministry, the US is one of India’s top five investment destinations and the third-largest source of foreign direct investment (FDI) for that country. It also said this visit of the US commerce secretary would immensely contribute towards furthering trade and commercial ties between the two countries.
Picture Courtesy: Google/images are subject to copyright
