Quantum Leap: How iCET is Reshaping Global Tech Dynamics

Policy Update
Ambika Khemka

Leaders seal the deal on iCET, strengthening India-US ties through cutting-edge technology to revolutionize the global tech landscape.

Background

The U.S.-India Initiative on Critical and Emerging Technology (iCET) was unveiled by President Biden and Prime Minister Modi in May 2022 during the Quad Summit in Tokyo positioning them as “trusted technology partners”. Formally launched in January 2023, this strategic framework aims to “expand partnership” and address “deeper cooperation” in high-technology areas such as artificial intelligence, quantum computing, semiconductors, and wireless telecommunication. The initiative seeks to address regulatory barriers, align export controls, and foster collaboration between governments, businesses, and academic institutions of both countries.

“The United States and India affirm that the ways in which technology is designed, developed, governed, and used should be shaped by our shared democratic values and respect for universal human rights. We are committed to fostering an open, accessible, and secure technology ecosystem, based on mutual trust and confidence, that will reinforce our democratic values and democratic institutions,” the White House said on January 31, 2023.

On 17 June 2024, Indian National Security Advisor (NSA) Shri Ajit Doval and U.S. National Security Advisor (APNSA) H.E. Mr. Jake Sullivan chaired the second meeting of the India-U.S. initiative on Critical and Emerging Technology (iCET) in New Delhi. The two sides discussed opportunities for greater cooperation in critical and emerging technologies, by focusing efforts on co-development, co-production. They also explored ways to deepen connectivity across our innovation ecosystems to stay at the leading edge of innovation and enhance coordination with like-minded nations.

Focus Areas

The iCET encompasses several key focus areas, each contributing to the overarching goal of technological advancement and collaboration between India and the United States.

• INNOVATION ECOSYSTEMS 

1. Establishment of Indo-U.S. Quantum Coordination Mechanism involving industry, academia, and government.
2. $90+ million joint funding for India-U.S. Global Challenges Institute over five years, focusing on semiconductor technology, sustainable agriculture, clean energy, health equity, and other critical technologies.
3. Nearly $5 million in initial funding awards for joint research projects in telecommunications, autonomous vehicles, and machine learning.
4. “Innovation Handshake” initiative launched to address regulatory barriers for startups, with events in November 2023 and March 2024.

• DEFENSE INNOVATION AND INDUSTRIAL COOPERATION

1. A new Defense Industrial Cooperation Roadmap is being developed to accelerate technological collaboration.
2. An “Innovation Bridge” will connect U.S. and Indian defense startups.
3. Negotiations are progressing for co-production of GE F414-INS6 engines for India’s future fighter fleet.

• SEMICONDUCTOR COLLABORATION

1. Both countries aim to enhance collaboration on resilient semiconductor supply chains. They intend to support the development of a semiconductor ecosystem in India.
2. General Atomics and 3rdiTech are launching a partnership to co-develop semiconductor design and manufacturing.

• SPACE COLLABORATION

1. NASA will train an ISRO astronaut and collaborate on a joint mission to the International Space Station, enhancing US-India space cooperation.
2. The NASA-ISRO Synthetic Aperture Radar satellite will be launched to map the Earth’s surface.
3. Opportunities for India’s participation in the Lunar Gateway Program will be explored.

• ADVANCED TELECOMMUNICATION COLLABORATION:

1. Cooperation on 5G and 6G research and development will be advanced.
2. Deployment and adoption of Open RAN in India will be facilitated. An India-U.S. Open RAN Acceleration Roadmap has been finalized.
3. Public-private cooperation between U.S. and Indian vendors and operators will be forged for Open RAN trials. The Bharat 6G Alliance and U.S. Next G Alliance will lead Open RAN field trials in both countries.

• BIOTECHNOLOGY AND BIOMANUFACTURING COLLABORATION:

1. Launch of the “Bio-5” Track 1.5 Biopharmaceutical Supply Chain Consortium involving the U.S., India, ROK, Japan, and the European Commission to enhance resilience in pharmaceutical supply chains and foster R&D collaboration.
2. Introduction of the “Bio-X” initiative to promote biotechnology cooperation by leveraging domestic programs and enhancing industry competitiveness in both countries, focusing on areas like molecular communication and the Internet of Bio-Nano Things.

• CLEAN ENERGY AND CRITICAL MINERALS PARTNERSHIP:

1. Promotion of India’s role in the Mineral Security Partnership, including co-investments in lithium and rare earth projects in South America and Africa to diversify critical mineral supply chains responsibly.
2. Establishment of an India-U.S. Advanced Materials R&D Forum to expand collaboration between universities, national laboratories, and private sector researchers from both countries.
3. Development of a collaborative program between the Geological Survey of India and the U.S. Geological Survey for exploration and evaluation of rare earth elements and critical mineral deposits.

Performance

India and the U.S. have made “significant progress” in several key areas identified for collaboration since the launch of iCET, a likely outcome of multiple high-profile visits and discussions on “unprecedented opportunities” between officials and stakeholders over the past year. As Mr. Doval mentioned in the second round of iCET talks, the two countries have already put in place the Quantum Coordination Mechanism, launched a public-private dialogue (PDD) on telecommunication to drive collaboration in OpenRAN, 5G and 6G, and held “important exchanges” on AI and space. 

These interactions and touch points have a multiplying effect that is almost impossible to measure, making the iCET network effect remarkably electric. Especially in context of India, MeitY constituted 4 committees on AI, Centres of Excellence on Internet of Things has been set up at Bengaluru, Gurugram, Gandhi Nagar and Visakhapatnam, Centre of Excellence on Virtual & Augmented Reality (VARCoE) at IIT Bhubaneswar, Formation of Inter-Ministerial Committee for Development of Robotics Ecosystem in the country, the Government of India launched the IndiaAI Mission. Also, India in March approved three semiconductor plant proposals, aiming to enhance its semiconductor manufacturing capabilities. These projects involve an estimated investment of Rs 1.26 lakh crore and are anticipated to substantially boost India’s electronics manufacturing sector.

Emerging Issues

While India and the U.S. have made significant strides in their collaboration through iCET, several critical challenges remain that need to be addressed to fully realize the potential of this partnership. These emerging issues, include:

1. Capacity and infrastructure gap: India needs to significantly enhance its technical capabilities, research infrastructure, and skilled workforce to effectively participate in advanced technology initiatives like iCET.
2. Insufficient R&D funding and limited private sector engagement: India’s current investment in R&D (0.7% of GDP) lags behind global leaders. There’s a pressing need for increased government funding and greater private sector involvement to drive innovation in critical technologies.
3. Technology transfer barriers: U.S. defense companies’ reluctance to share technologies due to intellectual property concerns and strict export control laws hinders effective collaboration and knowledge exchange.
4. Regulatory alignment challenges: Harmonizing India’s domestic regulatory frameworks with global standards is crucial for seamless integration into international collaborative efforts in emerging technologies.
5. Geopolitical complexities and global competition: Managing access to critical resources and technologies amidst international tensions and divergent national interests poses significant challenges for India’s technological advancement and global cooperation.
6. Rapid technological evolution: The fast pace of technological advancement makes it difficult to assess, regulate, and adapt to emerging technologies effectively, requiring flexible governance frameworks.
7. Digital divide concerns: Ensuring inclusive participation in technological initiatives requires addressing the digital divide to empower marginalized communities and promote equitable access to benefits.

Future Outlook

The Initiative on Critical and Emerging Technologies (iCET) represents a significant step towards positioning India as a global technological leader and fostering a robust innovation ecosystem. As we look towards the future, it’s crucial to consider the broader implications and potential outcomes of this collaborative effort between India and the United States.

The iCET’s objectives align closely with India’s aspirations for technological advancement and economic growth. By focusing on critical areas such as artificial intelligence, quantum computing, and advanced manufacturing, the initiative has the potential to catalyze India’s transition into a knowledge-based economy. This aligns with the vision of a “New India” that is self-reliant, innovative, and globally competitive.

The outcomes of successful implementation of iCET could be far-reaching:

1. Economic Growth: By fostering innovation and high-tech industries, iCET can contribute significantly to India’s economic growth, potentially creating new job opportunities and driving exports in high-value sectors.
2. Technological Self-Reliance: The focus on indigenous technology development can reduce India’s dependence on foreign technologies, enhancing national security and economic sovereignty.
3. Global Influence: As India becomes a key player in critical and emerging technologies, its influence in shaping global technological standards and governance frameworks is likely to increase.
4. Skill Development: The emphasis on research and development will necessitate a highly skilled workforce, potentially driving improvements in STEM education and vocational training across the country.
5. Sustainable Development: Many of the focus areas of iCET, such as clean energy technologies, can contribute to India’s sustainable development goals and climate change mitigation efforts.

The overall contribution of iCET towards a “New India” is substantial. It represents a shift from being primarily a consumer of technology to becoming a creator and exporter of cutting-edge innovations. This transition is crucial for India’s ambitions to become a $5 trillion economy and a global superpower.

However, the success of this initiative will depend on effective implementation of the strategies outlined earlier, including boosting R&D investment, enhancing research infrastructure, adapting regulatory frameworks, clarifying IP rights, securing critical raw materials, and promoting collaboration and skill development.

To maximize the potential of iCET, India should also consider:

1. Ensuring Inclusive Growth: While focusing on high-tech sectors, it’s crucial to ensure that the benefits of technological advancements reach all segments of society, including rural areas and economically disadvantaged groups.
2. Ethical Considerations: As India becomes a leader in critical technologies like AI, it should also take a leading role in addressing ethical concerns and promoting responsible innovation.
3. International Partnerships: While the iCET is a bilateral initiative with the US, India should leverage this experience to forge similar partnerships with other technologically advanced nations, creating a global network of innovation.
4. Balancing Act: India must carefully navigate its technological partnerships to maintain strategic autonomy while benefiting from international collaboration.

In conclusion, the iCET presents a unique opportunity for India to leapfrog into the forefront of technological innovation, potentially marking a significant milestone in India’s journey towards becoming a global superpower in the 21st century. The initiative showcases how developed and developing countries can collaborate effectively, with the U.S. providing advanced technological expertise and India offering a vast talent pool and growing market, creating a symbiotic relationship that benefits both nations.

From my perspective, the iCET represents a groundbreaking approach to technological cooperation, blending geopolitical strategy with innovation policy. It has the potential to reshape the global tech landscape, positioning India as a key player in emerging technologies while strengthening its strategic partnership with the United States.

References 

1. AI & Emerging Technologies Group. Ministry of Electronics and Information Technology, https://www.meity.gov.in/emerging-technologies-division
2. Bedi, Rahul. “The innate limitations in executing iCET” The Hindu, 10 July 2024, https://www.thehindu.com/opinion/op-ed/the-innate-limitations-in-executing-icet/article68386091.ece
3. Bhandari, Konark,et al. “India and the United States’ Good Bet: One Year of the U.S.-India Initiative on Critical and Emerging Technology (iCET)” Carnegie India, 12 June 2023,  https://carnegieendowment.org/research/2023/06/india-and-the-united-states-good-bet-one-year-of-the-us-india-initiative-on-critical-and-emerging-technology-icet?lang=en 
4. FACT SHEET: United States and India Elevate Strategic Partnership with the initiative on Critical and Emerging Technology (iCET). The White House, 31 January 2023, FACT SHEET: United States and India Elevate Strategic Partnership with the initiative on Critical and Emerging Technology (iCET) | The White House
5. Gupta, Anubha. “India-US Initiative on Critical and Emerging Technology (iCET): Upwards and Onwards”. Indian Council of World Affairs, 1January 2024, https://www.icwa.in/show_content.php?lang=1&level=3&ls_id=10343&lid=6594 
6. Review Meeting of the India-U.S. initiative on Critical and Emerging Technology (iCET). Ministry of External Affairs,  18 June 2024, https://www.mea.gov.in/press-releases.htm?dtl/37881/Review+Meeting+of+the+IndiaUS+initiative+on+Critical+and+Emerging+Technology+iCET 
7. Sumeda. “Explained | What is the India, U.S. initiative on future tech?” The Hindu, 18 June 2023, https://www.thehindu.com/sci-tech/technology/explained-what-is-the-india-us-initiative-on-future-tech/article66980841.ece

About the Contributor- Ambika Khemka, is a research intern at IMPRI and pursuing her bachelors in Political Science from Kirori Mal College, University of Delhi.

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