PM Modi's U.S. Visit Strengthens Strategic Ties with Joint Clean Energy and Defense Partnerships

What’s in today’s article?

• Why in News?
• Key highlights of the visit
• Key highlights of the Joint Fact Sheet
• Roadmap For U.S.-India Initiative to Build Safe and Secure Global Clean Energy Supply Chains

Why in News?

PM Modi is on official visit to the United States of America. During this visit, he met with the President of the USA, Joseph Biden on the sidelines of the Quad Summit in Delaware.

In a special gesture, President Biden hosted the meeting at his home in Wilmington.

Key highlights of the visit

• During the meeting, the following documents were adopted:
  • Joint Fact Sheet: The United States and India Continue to Expand Comprehensive and Global Strategic Partnership
  • Roadmap For U.S.-India Initiative to Build Safe and Secure Global Clean Energy Supply Chains

Key highlights of the Joint Fact Sheet

• India to launch national security semiconductor fabrication plant
  • Under a transformative collaboration with the United States, India is set to launch its inaugural national security semiconductor fabrication plant.
  • This plant is designed to produce chips for military applications and critical telecommunications.
  • It will be supported by the India Semiconductor Mission and involves a strategic technology partnership between Bharat Semi, 3rdiTech, and the US Space Force.
  • Named ‘Shakti’, the fab will concentrate on producing infrared, gallium nitride, and silicon carbide semiconductors.
  • This facility will not only mark India’s first such plant but will also be among the world’s pioneering multi-material fabs focused on national security.
  • It represents a significant step, comparable to the civil nuclear agreement, as it is the first time the US military has engaged in a partnership for high-value technologies with India.
• Establishment of the GF Kolkata Power Centre
  • Both the leaders acknowledged efforts to build resilient and secure semiconductor supply chains, which includes establishment of GlobalFoundries’ (GF).
  • GF) Kolkata Power Center will contribute to semiconductor supply chains and innovation in zero/low-emission vehicles, AI, and connected devices.
• NASA and ISRO to conduct scientific research onboard the International Space Station
  • The Leaders welcomed the first joint NASA-ISRO research project aboard the International Space Station planned for 2025.
• Establishment of the U.S.-India Global Challenges Institute
  • The establishment of the U.S.-India Global Challenges Institute, mobilizing $90+ million over five years, will support high-impact R&D partnerships between U.S. and Indian universities.
  • Seventeen new awards for research in AI and quantum technology were announced through the U.S.-India Science and Technology Endowment Fund.
• Joint Funding Initiatives in Science and Research
  • A combined $15 million in funding was announced to support U.S.-India joint research in next-gen telecommunications, semiconductors, AI, and sustainable technologies.
• Next Generation Defense Partnership
  • Both the leaders praised progress in U.S.-India defense ties, including India's procurement of 31 MQ-9B drones and co-production deals for jet engines and munitions.
  • They welcomed defense partnerships, like Liquid Robotics' collaboration with Sagar Defence, a new C-130J MRO facility, and INDUS-X innovation challenges.
  • The Leaders also emphasized military interoperability, space and cyber cooperation, and upcoming initiatives like Liaison Officer deployments and joint exercises such as TIGER TRIUMPH.
  • Efforts to strengthen India's MRO ecosystem and align defense procurement systems were also highlighted.
  • The Leaders applauded the recent conclusion of the Security of Supply Arrangement (SOSA), enhancing the mutual supply of defense goods and services. 
• Catalyzing the Clean Energy Transition
  • Both sides celebrated U.S.-India collaboration on clean energy, launching a roadmap to expand safe energy supply chains.
  • This includes unlocking $1 billion for renewable energy projects, U.S. International Development Finance Corporation (DFC) loans for solar manufacturing, and partnerships on hydrogen safety and critical minerals.
  • They emphasized the Strategic Clean Energy Partnership (SCEP) for innovation, climate change, and job creation.
  • Both leaders endorsed initiatives like the Green Transition Fund, public-private task forces, and India's progress towards IEA membership, reaffirming their commitment to accelerating clean energy deployment and manufacturing.
• Empowering Future Generations and Promoting Global Health and Development
  • Both sides celebrated the new U.S.-India Drug Policy Framework for the 21st Century and its accompanying Memorandum of Understanding.
  • This will deepen collaboration to disrupt the illicit production and international trafficking of synthetic drugs and precursor chemicals, and deepen a holistic public health partnership.
  • The Leaders applauded the recently launched Bio5 partnership between the United States, India, ROK, Japan, and the EU, driving closer cooperation on pharmaceutical supply chains.
  • The Leaders welcomed the formal launch of the new U.S.-India Global Digital Development Partnership.
  • It aims to bring together U.S. and Indian private sector companies, technology and resources to deploy the responsible use of emerging digital technologies in Asia and Africa.
  • The Leaders welcomed strengthened trilateral cooperation with Tanzania through the Triangular Development Partnership.
  • It is led by the U.S. Agency for International Development and India’s Development Partnership Administration to jointly address global development challenges and foster prosperity in the Indo-Pacific.
  • The partnership focuses on advancing renewable energy projects, including solar energy, to enhance energy infrastructure and access in Tanzania, thereby bolstering energy cooperation in the Indo-Pacific. 
• Repatriation of 297 Indian antiquities from the U.S. to India in 2024
  • In July 2024, the U.S. and India signed a Cultural Property Agreement to implement the 1970 Convention on preventing the illicit import, export, and transfer of cultural property.
  • This marked the culmination of years of collaboration between the two nations. As part of this effort, 297 Indian antiquities were repatriated from the U.S. to India in 2024.

Roadmap For U.S.-India Initiative to Build Safe and Secure Global Clean Energy Supply Chains

• Objectives of the roadmap
  • Job Creation: Generate high-quality employment through clean energy initiatives.
  • Accelerate Clean Energy Deployment: Foster rapid global adoption of clean technologies.
  • Global Climate Goals: Work towards mutual climate objectives.
• Key Initiatives
  • Financial Support:
    • Unlock $1 billion in multilateral finance via the International Bank for Reconstruction and Development (IBRD) for clean energy projects.
    • Support manufacturing capacity expansion in solar, wind, batteries, and energy grid systems.
  • Manufacturing Focus:
    • Identify investment opportunities in clean energy supply chains, targeting:
      • Solar wafers and cells
      • Wind turbine components
      • Energy storage systems
      • Electric vehicle battery packs
      • High-efficiency cooling technologies
  • Collaboration with Private Sector:
    • Work with industry to scope pilot projects and facilitate partnerships, particularly in Africa for solar and EV deployment.
    • Engage U.S. Development Finance Corporation (DFC) and Indian entities to finance clean energy component manufacturing.
  • Trilateral Relationships:
    • Build partnerships with African nations committed to clean energy, focusing on project success conditions and financing models.
  • Policy Development
    • Share insights on policies to strengthen demand for locally manufactured clean technologies.
    • Leverage existing laws like the U.S. Bipartisan Infrastructure Law and India's Production Linked Incentive Schemes to enhance investment security.

Q.1. What are the key outcomes of PM Modi’s U.S. visit?

PM Modi’s U.S. visit led to launching India’s first national security semiconductor plant, strengthening U.S.-India defense cooperation, boosting green technology investments, and collaborations in AI, quantum technology, and renewable energy.

Q.2. How will India benefit from the clean energy roadmap with the U.S.?

The U.S.-India clean energy roadmap unlocks $1 billion in finance for renewable projects, promotes solar and wind manufacturing, creates jobs, and supports global climate goals through trilateral relationships and public-private partnerships.

Source: India to establish first national security semiconductor plant in partnership with US | MEA | Ministry of External Affairs