Introduction
India-US tech collaboration, once rooted in shared scientific values and mutual development goals, now reflects a strategic techno-capitalist shift, raising concerns over India’s autonomy, innovation landscape, and digital sovereignty.
- From Scientific Internationalism to Strategic Instrumentalism
The 1975 SITE project between ISRO and NASA symbolised “scientific internationalism,” where technology was seen as a tool for shared human progress. However, current US-India tech relations—exemplified by the Initiative on Critical and Emerging Technologies (ICET, 2023)—increasingly prioritise strategic dominance, especially in AI, semiconductors, quantum tech, and space. While these partnerships offer India access to cutting-edge systems, they often come with geopolitical strings, limiting India’s strategic autonomy. - Techno-Capitalism and the Rise of the ‘Tech Broligarchy’: The Trump administration’s techno-capitalist vision represents a deregulatory, post-liberal model where Silicon Valley elites and Washington elites collaborate—not for public good, but for geopolitical supremacy. Policies like the 2025 AI Deregulation Framework and the GENIUS Act for stablecoins reflect a shift from governance to enablement, aligning state power with corporate ambition. For India, this deepens the asymmetry, as Indian tech firms struggle to match the scale, capital, and lobbying influence of US Big Tech.
- Erosion of Technological Sovereignty: India’s digital public infrastructure—like Aadhaar, UPI, and ONDC—represents a model of “tech for public good.” However, growing dependence on American cloud services, proprietary AI models, and platforms erodes data sovereignty. For instance, over 75% of India’s cloud market is controlled by US firms (AWS, Microsoft, Google), and there’s no Indian equivalent of foundational LLMs or semiconductor fabs. India’s lack of control over digital standards exposes it to future coercion or lock-in dependencies.
- Threat to Economic Autonomy and Tech Workforce: Trump-era policies like H-1B restrictions and AI-led automation challenge India’s service-export-driven economy. According to NASSCOM (2024), over 40% of Indian IT jobs face automation risk due to GenAI, threatening a sector that contributes 8% of India’s GDP. With US companies focusing on reshoring and domestic innovation, India’s tech labour arbitrage model is increasingly fragile.
- Innovation Ecosystem Under Pressure: India’s Gross Expenditure on R&D (GERD) is stuck at 0.7% of GDP, compared to 3.4% in the US and 2.4% in China. While the US incentivises private innovation through venture capital and strategic defence contracts, India lacks comparable financial ecosystems and IP regimes. The dominance of global Big Tech also sidelines Indian startups—who are often forced to depend on US venture capital and exit via foreign listings, diluting domestic value creation.
Way Forward: Guarding Strategic Interests
India must build indigenous capabilities in AI, chips, and quantum, through policies like the India Semiconductor Mission, Digital India Act, and Start-up India 2.0. Collaborations like India-France AI partnership and the Digital Public Infrastructure model shared with G20 offer alternatives to US techno-hegemony. A Data Protection Board, strategic tech alliances beyond the US (e.g. Quad Tech Network, EU Digital Partnerships), and enhanced public R&D funding are vital to preserving India’s digital autonomy.
Conclusion
India must move from passive recipient to proactive architect in global tech geopolitics—balancing strategic cooperation with technological self-reliance, economic resilience, and an innovation model rooted in democratic values.
