Source: The post India’s struggle to adapt to global techno-capitalism has been created, based on the article “The new techno-capitalism” published in “Indian Express” on 6th August 2025. India’s struggle to adapt to global techno-capitalism.
UPSC Syllabus Topic: GS Paper 3- Science and Technology- developments and their applications and effects in everyday life.
Context: India’s quiet commemoration of the SITE experiment’s 50th anniversary highlights its early ambition in tech-driven development. However, new global shifts—led by a radical transformation in American techno-capitalism under Donald Trump—are forcing India to re-evaluate its strategy in science, innovation, and talent export.
SITE and the Legacy of Tech Cooperation
- A Symbol of Developmental Idealism: SITE, launched in 1975, aimed to deliver educational content via satellite to underserved Indian villages. It was a collaborative effort between ISRO and NASA and emphasized technology’s role in development.
- From Collaboration to Caution: Following India’s 1974 nuclear test, U.S.-India cooperation cooled due to non-proliferation concerns. Decades later, mutual trust was rebuilt, culminating in the ICET initiative under President Biden in 2023.
- Emerging Divergences: Despite ICET, U.S.-India ties face stress from disagreements on global politics. More fundamentally, their technological ecosystems are drifting apart in structure and ambition.
Shifting Tech Models in the US, China, and India
- The Rise of American Techno-Capitalism: Since the SITE era, U.S. technology has become increasingly privatized. SpaceX now leads in launches, overtaking NASA. The government acts more as a facilitator than a central planner.
- China’s Centralised Tech Strategy: China follows a state-led, mission-driven approach. Massive investments in education, research, and space have made it a global tech rival, especially in AI and space exploration.
- India’s Middle Path: India has initiated reforms to energize its tech sector, particularly space. However, it lacks the dynamism of the U.S. private sector and the strategic focus of China’s state-driven model.
Trump’s Techno-Capitalism and Its Global Impact
- An Ideological Shift in Washington: Trump’s approach contrasts with Biden’s regulatory stance. His policies give Big Tech full freedom, aligning the American state with Silicon Valley’s libertarian elite.
- The AI and Crypto Push: The Trump administration’s 2025 AI policy dismantles barriers, fosters AI-led manufacturing, and mobilizes massive investment. The GENIUS Act promotes stablecoin use to strengthen the dollar’s dominance and counter de-dollarisation.
- Tech as Geopolitical Tool: By setting up a Strategic Bitcoin Reserve and halting prosecutions of crypto firms, Trump’s policies aim to secure strategic advantage—not just economic growth.
Philosophical Foundations and Power Alliances
- Thiel’s Influence and Ideological Core: Peter Thiel, a key Trump ally, champions deregulated innovation driven by entrepreneurs. His philosophy merges nationalism with libertarianism, casting China as a rival.
- End of 1990s Tech Optimism: The internet once promised decentralisation and state retreat. Instead, governments reasserted power, and today, a new “tech broligarchy” sees the state and tech elites united for strategic dominance.
- Trump’s Global Reconfiguration: This alliance underpins a broader project to reshape global trade, finance, and security. If the AI boom materializes, the U.S. will cement its economic leadership.
India’s Emerging Tech Dilemma
- Threats to India’s IT Workforce: India’s IT sector, a global success story, faces risks from AI-led job automation and U.S. visa restrictions under Trump. These trends threaten the country’s export of tech talent.
- Urgent Need for Policy Response: India must revamp its tech ecosystem by investing in research, boosting private sector participation, and preparing its institutions and workforce for future technological upheavals.
Question for practice:
Discuss how the rise of American techno-capitalism poses strategic and economic challenges for India’s technological future.
