Trump's return to the White House could have major impacts on global politics and trade.
The return of Donald Trump to the White House is likely to have significant implications for global politics, trade, and technology. Trump’s victory has raised questions about the future of U.S.-India relations, particularly in the realms of technology, defence, and trade. While much of the world anticipates changes in America’s foreign policies under his leadership, India, as a strategic partner, is likely to be impacted. This article explores how Trump’s policies may reshape India-U.S. technology cooperation, with a focus on areas like defence trade, and emerging tech collaboration.
A critical area where Trump’s victory will have a profound impact is in defence and trade relations between the U.S. and India. In his second term, Trump is likely to continue his focus on strengthening defence ties with India, particularly in the context of countering China’s growing influence in the Indo-Pacific region. A Media Note issued by the U.S. Embassy in India in April 2024 highlighted joint initiatives in space and defence technologies, including workshops aimed at advancing U.S.-India collaboration in the commercial space sector. With Trump’s focus on boosting defence exports and technology transfers, India could see more access to advanced American military technologies, which could enhance its own defence capabilities, while also contributing to regional stability.
Areas like artificial intelligence, 5G, and, cybersecurity, will remain focus areas of India-U.S. collaboration. Trump’s victory could potentially accelerate investments in critical technologies, especially given his administration’s emphasis on 'Made in America' policies. India’s growing tech ecosystem presents opportunities for collaboration, with American companies seeking to capitalize on India’s talent pool, especially in areas like software development, AI research, and digital services.
However, challenges may also emerge. In the last four years, India and the United States have focused on joint innovation in critical and emerging technologies (iCET), and collaborated on advanced research projects. Trump’s protectionist trade policies, however, could pose a barrier to such collaborations, especially if U.S. companies face higher tariffs or stricter regulatory hurdles in India. Despite these challenges, the strategic alignment between the two nations, particularly in countering Chinese tech dominance, is likely to lead to more collaborative ventures.
Additionally, the space sector stands as a key area of potential growth for India-U.S. tech ties. The U.S. is keen on strengthening its ties with India in the commercial space industry. The collaboration in space exploration, satellite communications, and space-based technologies could deepen, especially given India’s growing prowess in the space sector, highlighted by successful missions like the Chandrayaan and Mangalyaan.
Looking Ahead: A New Era of Technological Synergy
Trump’s 2024 election victory signals the continuation of policies that may both challenge and incentivize deeper India-U.S. technology cooperation. While India’s tech companies may face restrictions in terms of H-1B visas and immigration policies, the growth of the Indian tech ecosystem and its role in the global supply chain will remain vital. On the other hand, U.S. defence and tech companies will continue to look toward India as a key partner in countering global security threats and advancing innovation in emerging technologies.
The future of India-U.S. technology cooperation will likely remain on areas like defence, digital transformation, and combating global challenges like cyber threats and climate change. While Trump’s policies may tilt towards protectionism in some areas, the strategic value of a robust technology partnership between India and the U.S. will remain an important cornerstone of their long-term relationship.