Answer

The India-US technology partnership, exemplified by the Initiative on Critical and Emerging Technologies (iCET), aims to enhance collaboration in cutting-edge fields like AI and defence. However, regulatory complexities in nuclear energy cooperation persist. For instance, India’s ambitious civil nuclear energy goals remain constrained by liability concerns, highlighting the potential and challenges of this strategic alliance.

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India-US Technology Partnership through iCET: A Strategic Shift

• Strengthened Tech Engagement: iCET fosters deep collaboration in AI, semiconductors, space, and biotechnology, expanding beyond government-to-government ties.
• Decoupling from China: iCET aligns with the US strategy to derisk global dependence on China and establish regional balance in the Indo-Pacific.
  For instance: It promotes supply chain resilience in critical technologies like semiconductors, reducing reliance on Chinese manufacturing.
• Civil Space Cooperation: iCET removes US restrictions on civilian space projects, encouraging greater bilateral space exploration and technology initiatives.
• Legacy of Negotiations: Building on decades of trust, iCET formalises strategic tech partnerships, enhancing long-term bilateral engagement in advanced technologies.
  For instance: iCET emerged from complex negotiations between India and the US, involving bureaucratic and policy reforms.
• AI and Nuclear Synergy: iCET connects India’s growing AI energy demands with US advancements in nuclear technology, fostering opportunities for clean and reliable power sources.
  For instance: AI data centres requiring clean energy position nuclear as a viable alternative, advancing tech and energy ties.

Challenges in Nuclear Energy Cooperation

• Regulatory Barriers: India’s Civil Liability for Nuclear Damage Act, 2010, limits foreign investments in nuclear energy development.
  For instance: US companies hesitate to invest due to unclear liability norms, stalling nuclear power plant agreements.
• Slow Policy Reforms: Despite the nuclear deal’s potential, India has yet to revise critical policies to attract international suppliers beyond Russia.
• Bureaucratic Delays: Negotiations on nuclear energy cooperation face extended timelines due to differing national priorities and procedural complexities.
• Non-Proliferation Concerns: Past sanctions and global norms on nuclear non-proliferation continue to influence the pace of nuclear energy agreements.
  For instance: The US blacklisted India’s key atomic energy facilities, complicating civilian nuclear collaborations.
• Energy Market Dynamics: Competing energy sources like renewables challenge nuclear energy’s adoption despite its suitability for AI-driven power demand.
  For instance: AI data centres requiring clean and scalable energy sources lean on nuclear, but market policies remain unfavourable.

Opportunities in the Evolving Partnership

• Strengthened Collaboration in Critical Technologies: Enhanced cooperation in AI, semiconductors, space, and biotechnology strengthens India-US strategic ties.
  For example: iCET facilitates industry-to-industry collaborations, fostering advanced technology ecosystems in both nations.
• Reduced Dependence on China: Joint initiatives aim to diversify supply chains and reduce dependency on China for critical technologies and manufacturing.
  For example: iCET focuses on de-risking technology partnerships and boosting production in allied nations.
• Boost to Clean Energy Development: Nuclear energy cooperation aligns with the AI industry’s demand for clean energy, encouraging investments in nuclear infrastructure.
• Increased Global Influence: India and the US, through joint efforts, can reshape global tech governance and leadership.
  For example: Collaborative frameworks in the Indo-Pacific region promote regional stability and curtail China’s dominance.
• Advancement of India’s Domestic Technology Sectors: Enhanced access to US expertise and investment accelerates India’s tech innovation and manufacturing capabilities.
  For example: Delhi’s focus on advanced technology partnerships supports startups, boosting national economic growth.

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Way Forward

• Resolve Nuclear Liability Act Issues: Modify the Civil Liability for Nuclear Damage Act, 2010 to attract private and international investments in nuclear power projects.
• Expand iCET’s Scope: Broaden iCET to include cybersecurity and green technologies, fostering holistic development.
  For example: Joint R&D projects on AI-enabled cybersecurity can strengthen digital resilience in both nations.
• Institutionalize Tech Alliances: Develop long-term institutional mechanisms to ensure continuity in advanced technology collaboration beyond changing administrations.
• Promote Industry-Driven Initiatives: Encourage private sector partnerships in cutting-edge fields like quantum computing and biotechnology.
  For instance: Joint ventures between Indian startups and US companies can drive breakthrough innovations in emerging markets.
• Leverage AI-driven Energy Demands: Focus on AI-related clean energy needs to revitalize India’s nuclear energy sector for sustainable growth.

The India-US technology partnership, underpinned by iCET, offers immense potential for innovation and growth. To overcome nuclear energy hurdles, streamlined regulatory frameworks and enhanced technological collaboration are essential. Joint investments in AI and green tech can ensure sustainable progress, fostering a future-ready alliance that addresses global challenges and strengthens bilateral ties for mutual prosperity.

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