India-U.S. Initiative On Critical And Emerging Technology (iCET): Strategic Policy Overview

Policy Update
Anamitra Sinha

Background

The U.S.-India Initiative on Critical and Emerging Technology (iCET) was launched in May 2022 to strengthen the strategic technology partnership and defence industrial cooperation between the two countries. iCET seeks to bolster collaboration across governments, businesses, and academic institutions, with a focus on advanced technologies such as quantum computing, artificial intelligence, cyber security, 5G/6G, and space technologies. Both nations emphasized that the development and use of these technologies should be guided by their shared democratic values and respect for human rights. They are committed to fostering an open, secure, and accessible technology ecosystem, which will uphold and reinforce their democratic institutions (U.S. National Security Council, 2022).

The inaugural meeting of iCET was held in Washington, D.C., bringing together top U.S. and Indian officials to discuss cooperation in critical and emerging technologies, co-development, and co production. Areas like biotechnology, advanced materials, and rare earth processing technology were identified for future collaboration. The meeting also highlighted the importance of “innovation bridges,” such as expos, “hackathons”, and pitch sessions, to connect the innovation ecosystems of both countries (White House, 2022).

Both nations are working to overcome regulatory barriers and enhance business and talent mobility through a standing mechanism under iCET. The initiative reflects a mutual desire to reduce dependency on imports and establish a robust defence and strategic technology framework, benefiting sectors like defence, technology firms, academic institutions, and start-ups in both nations (U.S.-India Business Council, 2022).

Functioning

The iCET operates through a robust framework of structured collaboration that integrates efforts from public and private sectors, government agencies, and academic institutions across both nations. Aimed at advancing bilateral cooperation in cutting-edge technology sectors, iCET’s functioning centers on several key mechanisms: joint task forces, research partnerships, exchange programs, and investment in research and development (R&D), with an emphasis on sharing critical technologies.

One of the primary components of iCET is the formation of joint task forces that oversee domain-specific initiatives. For instance, a dedicated task force has been established to enhance bilateral collaboration on semiconductor supply chains, leveraging complementary strengths between the U.S. and India. This task force focuses on developing a robust ecosystem for semiconductor design, manufacturing, and workforce development in India, thereby supporting global supply chains and fostering technological partnerships. The task force is organized by the U.S. Semiconductor Industry Association (SIA) in conjunction with India’s Semiconductor Mission, underscoring the importance of industry-government cooperation.

Another notable example of iCET’s functioning is the implementation of research partnerships in areas such as quantum technology, artificial intelligence (AI), and high-performance computing (HPC). By fostering cooperation between Indian technical experts and U.S. national laboratories and quantum institutions, the initiative promotes the exchange of knowledge and expertise. Collaborative workshops on post-quantum cryptography and visits by Indian researchers to U.S. labs are designed to drive technological advancement in quantum science. In AI, iCET emphasizes the development of multi-stakeholder standards to ensure that emerging AI technologies align with democratic values, marking a significant step toward building ethical AI systems.

iCET also facilitates extensive public-private cooperation, particularly in the field of telecommunications. Through joint R&D in 5G and 6G technologies, the initiative supports the deployment of Open Radio Access Networks (Open RAN) in India. This public-private dialogue includes partnerships between Indian telecommunications firms, U.S. tech companies like Qualcomm, and international institutions such as the Asia Open RAN Academy. These collaborations aim to scale high-quality, cost-effective telecommunications infrastructure while fostering workforce development in next-generation communications technologies.

Defence cooperation under iCET is another critical area where joint projects have been initiated. The creation of a bilateral Defense Industrial Cooperation Roadmap facilitates the joint development and production of technologies, including jet engines and other defence systems. The iCET framework also supports defence start-ups through the “Innovation Bridge” initiative, which connects U.S. and Indian defence start-ups to accelerate innovation in military technologies. These efforts are further strengthened by the on-going negotiations between GE Aerospace and Hindustan Aeronautics Limited for the co-production of fighter jet engines.

The functioning of iCET faces several challenges. U.S. export control laws have been a key hurdle in the transfer of certain advanced technologies to India. Navigating these regulations while maintaining India’s strategic autonomy remains complex. Moreover, there are concerns regarding India’s cyber security infrastructure and digital workforce readiness to handle the sophisticated technologies involved in these partnerships. Ensuring data privacy in AI and aligning technological standards across both nations are also pressing issues that iCET must address.

Performance

The U.S.-India Initiative on Critical and Emerging Technology (iCET) has made notable progress in various sectors over the past two years. For instance, India has advanced significantly in Artificial Intelligence (AI) research, with the establishment of AI labs at Indian Institutes of Technology (IITs), funded through bilateral grants. According to the Ministry of Electronics and Information Technology, there has been a 12% increase in quantum computing research publications, indicating growth in this critical technology area. Collaboration between the Indian Space Research Organisation (ISRO) and NASA on space missions further strengthens the partnership in space exploration and technology.

India has also increased budget allocations for defence technology research and development, reflecting government commitment to iCET. The initiative has accelerated technological cooperation, leading to significant strides in semiconductor development and high-performance computing (MeitY, 2023). However, challenges remain. Parliamentary reports have highlighted uneven technical infrastructure across Indian states, slowing the initiative’s progress in certain regions (Standing Committee on IT, 2023). These regional disparities, if not addressed, may limit the overall potential of iCET to fully achieve its objectives across the country. Despite these challenges, the initiative demonstrates positive momentum in fostering innovation, collaboration, and technological growth between India and the U.S.

Impact

The iCET has already begun delivering results by strengthening India’s defence technology base and fostering innovation ecosystems. For example, the joint effort has enhanced India’s cyber security framework by training personnel in advanced threat detection systems. AI-driven solutions in healthcare and agriculture have begun to take root in pilot projects. Economic surveys have shown early signs of increased FDI in tech start-ups, and collaborations with Silicon Valley have led to increased knowledge transfers. However, challenges remain in scaling pilot programs to larger populations and ensuring equitable access to technology. The geopolitical context, with tensions between China and the U.S., has further amplified the importance of India’s strategic positioning via the iCET.

Emerging Issues and Challenges

India faces several challenges in fully capitalizing on the U.S.-India Initiative on Critical and Emerging Technology (iCET), many of which stem from geopolitical differences, regulatory barriers, and domestic capacity limitations. A key issue lies in India’s differing stance on global issues, such as its neutral approach to the Ukraine-Russia war, which can strain its relationships with key partners like the U.S. and affect collaboration in critical and emerging technologies (Bhatt, 2023).

Regulatory barriers, particularly in terms of export control norms, present another significant challenge. India’s existing export regulations can inhibit strategic technology partnerships, making it imperative to streamline these laws to encourage innovation and smooth technology transfer (MeitY, 2022). Additionally, the lack of a well-defined technology transfer framework creates uncertainty, deterring potential foreign collaborations (NITI Aayog, 2023).

India’s relatively low research and development (R&D) investment, estimated at only 0.7% of its GDP, further hampers its ability to compete in advanced technologies, particularly in comparison to countries like Brazil, South Africa, and China (NITI Aayog, 2023). Moreover, Public Sector Undertakings (PSUs) like the Defence Research and Development Organisation (DRDO) and Hindustan Aeronautics Limited (HAL) have struggled to develop cutting-edge technologies such as AI for defense purposes, limiting India’s capacity to leverage iCET for military applications (Defense Experts, 2023).

Intellectual property rights (IPR) remain another contentious area, with the U.S. Trade Representative identifying India as a challenging country for IP protection. Simultaneously, Indian industry leaders have raised concerns about the U.S. IP regime, citing high patent filing costs and issues with enforcement (USTR, 2023). Data sovereignty concerns and technological capacity gaps, especially in rural areas, further complicate India’s ability to take full advantage of iCET (Standing Committee on IT, 2023).

Way Forward

For iCET to achieve its full potential, India must prioritize investment in human capital by enhancing digital skills training and STEM education across all states. Stronger policy frameworks on data protection and cross-border data flows will be essential to ensure regulatory harmonization. Additionally, incentivizing private-sector participation in R&D and ensuring public-private partnerships flourish will accelerate the initiative. India’s aspirations to become a global leader in emerging technology depend on creating a robust legal and technical infrastructure that can support sustained growth and innovation.

References

Bhatt, A. (2023). India’s Geopolitical Stance: Implications for iCET. IMPRI Policy Update.
Defense Experts. (2023). Challenges in Developing Cutting-Edge Defense Technologies. IMPRI Policy Update.
Ministry of Electronics and Information Technology (MeitY). (2022). Export Control Regulations in Emerging Technologies. New Delhi: Government of India.
Ministry of Electronics and Information Technology (MeitY). (2023). Quantum Computing and AI Report. New Delhi: Government of India.
NITI Aayog. (2023). Research and Development Spending in India. New Delhi: Government of India.
Standing Committee on IT. (2023). Infrastructure Development in Emerging Technologies. Parliamentary Report. New Delhi: Government of India.
U.S. Trade Representative (USTR). (2023). Special 301 Report on Intellectual Property Rights. Washington, DC: Office of the U.S. Trade Representative.
U.S. National Security Council. (2022). U.S.-India Initiative on Critical and Emerging Technology (iCET): Strategic Policy Overview. Washington, DC: The White House.
U.S.-India Business Council. (2022). Enhancing Cooperation on Critical Technologies: U.S.-India Strategic Framework. Washington, DC: U.S. Chamber of Commerce.
White House. (2022). Joint Statement on the U.S.-India Critical and Emerging Technology Partnership. Washington, DC: The White House.

About the Contributor – Anamitra Sinha, Policy Research Intern at IMPRI Institute and Master’s student in Development, Policy Planning, and Practice at Tata Institute of Social Science, School of Rural Development, Tuljapur (Off-Campus).

Acknowledgement – This article was reviewed by IMPRI experts and other collaborators.