Policy Update
Pragya Raghav
Background
The Transforming the Relationship Utilizing Strategic Technology (TRUST) Initiative was announced during Prime Minister Narendra Modi’s working visit to Washington, D.C., on 13 February 2025 during the second term of President Donald Trump and Prime Minister Narendra Modi reaffirmed the India–US Comprehensive Global Strategic Partnership, emphasising mutual trust, shared interests, technological cooperation, and closer ties between the two countries.
TRUST was announced as part of the broader U.S.–India COMPACT (Catalyzing Opportunities for Military Partnership, Accelerated Commerce & Technology) framework, which seeks to strengthen cooperation in defence, trade, and technology while delivering tangible and measurable outcomes from the bilateral relationship.
The initiative builds upon the progress made under the Initiative on Critical and Emerging Technology (iCET), which was announced in 2022 and launched through the first India–US iCET dialogue in January 2023. While iCET established a framework for cooperation in critical and emerging technologies, TRUST places greater emphasis on operationalizing focus areas such as technological cooperation into investment, industrial partnerships, secure supply chains, and commercial outcomes.
TRUST covers a broad range of strategic sectors, including artificial intelligence, semiconductors, quantum technologies, biotechnology, critical minerals, pharmaceuticals, space, and advanced manufacturing. It also seeks to strengthen cooperation between governments, businesses, research institutions, and technology ecosystems in both countries.
A major component is the U.S.–India Roadmap on Accelerating AI Infrastructure, which seeks to catalyze security, trust, responsible deployment, investment and partnerships in data centres, advanced computing, reliable energy infrastructure, and digital connectivity. The initiative is particularly significant as both countries seek to expand their AI capabilities while ensuring that emerging technologies are developed and deployed securely.
Critical minerals represent another important area of cooperation. Minerals such as lithium and rare earth elements are essential for batteries, electronics, clean energy technologies, defence systems, and advanced manufacturing. TRUST therefore seeks to strengthen cooperation across exploration, processing, recycling, recovery, and investment while reducing vulnerabilities in critical supply chains.
The initiative also reflects the changing geopolitical environment. The United States increasingly views India as an important partner in building resilient technology and supply-chain networks, particularly in the context of growing strategic competition with China. For India, deeper cooperation with the United States provides opportunities to access advanced technologies, attract investment, strengthen domestic manufacturing, and diversify strategic partnerships while retaining its principle of strategic autonomy.
Thus, TRUST represents a shift from technology cooperation based primarily on dialogue and frameworks towards a more outcome-oriented partnership involving technology, trade, investment, industrial capacity, and supply-chain resilience.
Functioning
The functioning of TRUST can be understood through four interconnected areas: AI infrastructure, critical minerals, emerging technologies and innovation, and resilient supply chains.
1. AI Infrastructure Roadmap
The U.S.–India Roadmap on Accelerating AI Infrastructure is one of the most important components of the initiative. It aims to support the development of large-scale AI infrastructure in India through greater investment, technological cooperation, and private-sector participation.
AI development requires substantial computing capacity, data centres, reliable electricity, high-speed connectivity, advanced processors, and skilled professionals. TRUST seeks to address these requirements by encouraging collaboration between governments and private companies.
For India, the roadmap could strengthen domestic computing capacity and support the growth of its AI ecosystem. For U.S. companies, India offers a large technology market, a growing digital economy, and a substantial pool of technical talent. The success of this cooperation, however, will depend on investment, infrastructure availability, regulatory clarity, and access to advanced computing technologies.
2. Critical Minerals Collaboration
Critical minerals are increasingly important to both economic security and national security. Lithium, rare earth elements, and other strategic minerals are essential for electric vehicles, renewable energy systems, electronics, semiconductors, and defence technologies.
TRUST seeks to expand cooperation across the entire critical-mineral value chain rather than limiting collaboration to mineral extraction. This includes exploration, processing, recycling, recovery, investment, and supply-chain development.
Such cooperation can help both countries diversify their sources of critical minerals and reduce excessive dependence on concentrated global suppliers. For India, collaboration with the United States can also support the development of domestic processing and manufacturing capabilities.
3. Innovation and Defence-Technology Cooperation
TRUST builds upon existing platforms such as INDUS-X and the INDUS Innovation initiative, which connect start-ups, companies, researchers, universities, and government institutions in India and the United States.
These platforms provide opportunities for joint research, investment, mentoring, technology development, and industry–academia collaboration. Cooperation extends to areas such as defence technology, space, biotechnology, energy, artificial intelligence, and advanced manufacturing.
The broader objective is to move from simply exchanging knowledge towards commercialising innovation and developing technologies that can be deployed at scale.
4. Supply-Chain Security and De-risking
Supply-chain resilience is a core pillar of TRUST. The COVID-19 pandemic, geopolitical tensions, and disruptions in global trade have demonstrated the risks associated with excessive dependence on a limited number of suppliers.
India and the United States are therefore seeking to diversify supply chains in strategic areas such as semiconductors, pharmaceuticals, critical minerals, and advanced manufacturing. Cooperation includes promoting investment in Indian manufacturing, diversification of pharmaceutical supply chains, and development of alternative sources for strategic minerals.
For India, this creates an opportunity to strengthen its position as a reliable manufacturing and technology partner. For the United States, India can contribute to broader efforts to build more diversified and resilient supply networks.
Performance
One of the most visible and advance areas in which India–US technology cooperation has progressed is the semiconductor sector.
India has made significant efforts to establish a domestic semiconductor ecosystem through its semiconductor incentive programme, while U.S. companies have increasingly explored opportunities within India’s electronics and semiconductor value chains. The establishment of Micron’s semiconductor assembly, testing, marking and packaging (ATMP) facility in Gujarat has been an important development in this direction.
However, government incentives alone cannot guarantee the long-term competitiveness of India’s semiconductor sector. Access to international markets, reliable infrastructure, skilled manpower, technology, and favourable trade conditions will remain important.
This is where the concept of friend-shoring becomes relevant. As the United States seeks to diversify semiconductor supply chains and reduce excessive dependence on China, India has the potential to emerge as an alternative manufacturing and technology partner.
For India, legacy-node semiconductors could represent a particularly practical area of opportunity. These chips are widely used in automobiles, industrial equipment, consumer electronics, defence systems, and other applications. Developing capabilities in these segments could allow India to establish a stronger position in global semiconductor supply chains while simultaneously building expertise for more advanced manufacturing.
At the same time, India also faces competition from countries such as Mexico, Vietnam, Malaysia and other established manufacturing hubs that possess stronger preferential access to the U.S. market. Semiconductor products are also frequently incorporated into larger electronic systems, meaning that tariffs on finished goods can indirectly influence the competitiveness of semiconductor manufacturing.
Consequently, deeper trade cooperation will be important for ensuring that India’s semiconductor ambitions translate into commercially viable production and exports.
The broader strategic significance of this cooperation is also visible in the United States–India Joint Leaders’ Statement 2025, which identifies semiconductors and other critical and emerging technologies as important areas for bilateral cooperation.
The progress achieved so far demonstrates that TRUST does not operate in isolation. Rather, it builds upon earlier initiatives, including iCET and INDUS-X, while attempting to connect technology cooperation with investment, manufacturing, trade, and supply-chain resilience.
The next stage will therefore depend less on announcing new frameworks and more on whether both governments can create conditions in which businesses are willing to invest, innovate, manufacture, and scale operations in both countries.
Impact
The impact of TRUST extends beyond individual technology sectors. Its broader significance lies in its potential to strengthen India’s technological capabilities, diversify supply chains, attract investment, and deepen the strategic relationship between India and the United States.
1. Strengthening Biotechnology and Biomanufacturing
India’s Biotechnology for Economy, Environment and Employment (BioE3) Policy, introduced in 2024, seeks to promote biotechnology-driven innovation, entrepreneurship, and economic growth. Cooperation under TRUST can complement these objectives by encouraging collaboration between Indian and U.S. biotechnology companies, research institutions, start-ups, and investors.
Potential areas of cooperation include genomics, diagnostics, synthetic biology, personalised medicine, biomanufacturing, and pandemic preparedness.
Greater access to international expertise and investment could help Indian start-ups move from research and experimentation towards commercial applications, strengthening India’s position in the global biotechnology ecosystem.
2. Connecting Artificial Intelligence with Biotechnology
The intersection of AI and biotechnology offers another significant area for cooperation. AI can contribute to drug discovery, genomic research, diagnostics, vaccine development, and biomanufacturing.
India and the United States could benefit from greater collaboration in areas such as bioinformatics, secure data-sharing systems, and responsible AI applications in healthcare. However, such cooperation will also require strong safeguards for sensitive health information, data protection, and responsible use of AI.
3. Diversifying Technology and Supply Chains
The growing strategic importance of China in sectors such as AI, telecommunications, critical minerals, and advanced manufacturing has encouraged both India and the United States to diversify their technology and supply-chain partnerships.
TRUST can contribute to this diversification by encouraging investment and cooperation in semiconductors, critical minerals, pharmaceuticals, biotechnology, and advanced manufacturing. For India, this provides an opportunity to strengthen domestic industrial capacity while becoming a more important node in global supply chains.
4. Expanding Economic Opportunities
India’s expanding digital economy, start-up ecosystem, and manufacturing ambitions create opportunities for U.S. businesses, while American investment and technology can support India’s economic and technological development.
Bilateral goods trade reached approximately US$129 billion in 2024, while both countries have expressed an ambition to significantly expand bilateral trade by 2030.
Greater cooperation in technology, manufacturing, digital services, and emerging industries could contribute to investment, employment, innovation, and supply-chain diversification.
Figure: 1
Source: UN Comtrade/BACI International
5. Strengthening Defence and Strategic Technology Cooperation
Technology has increasingly become a central component of India–US defence cooperation. Over the past two decades, defence ties have expanded considerably, including cooperation in maritime security, defence technology, space, cybersecurity, and emerging technologies.
Platforms such as INDUS-X provide an avenue for connecting defence start-ups and innovators from both countries. Cooperation in artificial intelligence, autonomous systems, cybersecurity, and space technologies can help both countries respond to the changing nature of security challenges.
6. Deepening Strategic Trust
The India–US relationship has evolved significantly from earlier periods of strategic divergence. Milestones such as the 2005–08 Civil Nuclear Agreement, growing defence cooperation, scientific collaboration, and expanding people-to-people ties have contributed to greater mutual confidence.
TRUST represents another stage in this evolution by placing technology and economic security at the centre of the bilateral relationship.
Emerging Challenges
Despite its potential, TRUST faces several challenges that could affect its implementation.
1. Regulatory and Policy Differences
Differences in regulations, export-control regimes, tariffs, data policies, intellectual property frameworks, and local-content requirements can complicate technology and trade cooperation.
U.S. export controls may restrict the transfer of certain advanced or dual-use technologies, while Indian regulatory requirements can create additional barriers for foreign companies. Greater regulatory coordination will therefore be necessary.
2. Slow Progress on Trade Issues
Technology cooperation cannot be completely separated from trade. Differences over tariffs, market access, intellectual property, digital trade, and other commercial issues can influence companies’ willingness to invest.
A more predictable trade environment would provide greater certainty to businesses participating in strategic technology partnerships.
3. R&D and Funding Gap
India’s research and development expenditure remains significantly lower as a share of GDP than that of the United States. This difference can limit the ability of Indian institutions and companies to participate equally in capital-intensive research and technology development.
Increasing public and private investment in R&D, strengthening universities, and improving industry–academia partnerships will therefore be important for deriving long-term benefits from TRUST.
4. Balancing Strategic Autonomy
India’s commitment to strategic autonomy remains an important consideration in its relationship with the United States.
India continues to maintain significant defence, energy, and economic relationships with countries such as Russia. Differences in strategic priorities may therefore arise on issues involving sanctions, defence technology, energy security, or geopolitical crises.
India will need to deepen cooperation with the United States while maintaining sufficient strategic flexibility in its wider foreign policy.
5. Bureaucratic and Institutional Coordination
TRUST involves multiple sectors, ministries, businesses, research institutions, and regulatory agencies. Coordination across such a wide range of stakeholders can create delays in approvals, procurement, investment decisions, and technology transfers.
Effective institutional mechanisms will therefore be necessary to convert broad commitments into measurable outcomes.
6. Changing Political and Geopolitical Priorities
Long-term technology partnerships can be affected by changes in government policies, trade priorities, and geopolitical circumstances.
Developments involving China, Taiwan, Russia, global trade tensions, or changes in technology-export policies could influence the strategic environment in which TRUST operates.
7. Converting Frameworks into Measurable Outcomes
India and the United States already have several important agreements and mechanisms, including LEMOA, COMCASA, BECA, and GSOMIA. The central challenge is now to ensure and move from such frameworks into actual projects, investment, technology development, manufacturing capacity, and measurable economic outcomes.
TRUST will ultimately be judged not by the number of agreements announced but by the extent to which these commitments produce tangible results.
Way Forward
The TRUST Initiative has the potential to take India–US relations beyond traditional defence and economic cooperation by placing technology, innovation, and economic security at the centre of the partnership.
The immediate priority should be to convert existing commitments into concrete projects in artificial intelligence, semiconductors, biotechnology, critical minerals, space, and defence technology. This will require faster regulatory approvals, greater private-sector participation, stronger institutional coordination, and more predictable frameworks for technology and investment.
Both countries should also focus on developing resilient and diversified supply chains rather than simply shifting dependence from one supplier to another. India can contribute its growing pool of skilled professionals, start-up ecosystem, manufacturing potential, and large domestic market, while the United States can contribute advanced technologies, capital, research capabilities, and global market access.
Greater collaboration between universities, research institutions, start-ups, and established industries should also be encouraged. This can help bridge the gap between research and commercialisation and ensure that technological cooperation generates employment and broader economic benefits.
At the same time, TRUST must remain compatible with India’s strategic autonomy and its broader foreign-policy interests. A successful partnership should provide India with greater technological and economic choices rather than creating a new form of dependence.
Ultimately, the success of TRUST will depend on its ability to move from strategic intent to implementation. If both countries can reduce regulatory barriers, strengthen private-sector participation, support innovation, and maintain consistent political engagement, TRUST can become an important pillar of the India–US relationship and contribute to a more resilient, innovative, and technologically capable global economy.
References
Office of the Principal Scientific Adviser, Government of India. TRUST Initiative.2025
The White House. United States–India Joint Leaders’ Statement. 2025.
https://www.whitehouse.gov/briefings-statements/2025/02/united-states-india-joint-leaders-statement
Carnegie Endowment for International Peace. The India–US TRUST Initiative: Advancing Semiconductor Supply Chain Cooperation. 2025.
Observer Research Foundation (ORF). The US–India TRUST Initiative: Reshaping Biotech’s Future.
https://www.orfonline.org/expert-speak/the-
Innovate Together. U.S.–India Collaboration on AI and Emerging Technologies.
United Nations Comtrade Plus. UN Comtrade Database.
About the Contributor
Pragya Raghav is pursuing a B.A. (Hons.) in History at Mata Sundri College for Women, University of Delhi, with a minor in Political Science. She is passionate about public policy, international relations, governance, climate policy, and sustainable development. Through research and policy analysis, she aims to contribute to evidence-based policymaking and create meaningful social impact.
Acknowledgement
The author extends sincere gratitude to the IMPRI team for their guidance and support along with the reviewers Ashi Verma and Manish for their valuable feedback and insights.
Disclaimer
The views and opinions expressed in this article are solely those of the author and do not necessarily reflect the views, policies, or positions of IMPRI (Impact and Policy Research Institute) or any other affiliated organisation.
