NEW DELHI: India and the US on Friday inked a memorandum of understanding (MoU) on establishing semiconductor supply chain and innovation partnership.
US Commerce Secretary Gina Raimondo, who was present along with her counterpart Piyush Goyal, said the MoU was designed to help India achieve its aspirations to play a larger role in the electronic supply chain.
The MoU was signed under the framework of India-US Commercial Dialogue which is being held for the first time since 2019.
The US Commerce Secretary said the MoU had tasked semiconductor industries of both nations to prepare an assessment of gaps and the lack of resiliency in the supply chain.
“We are absolutely thrilled to be working with India as part of the Indo-Pacific Economic Framework (IPEF). Through IPEF, the US, India and a dozen other partners are developing policies to create more resilient and secure supply chains, accelerate progress, green transitions and demonstrate our commitment to fostering a better business environment,” she said.
“The MoU talks about how we will share information about the semiconductor commercial opportunities between our two countries, how we will have a continued dialogue around policies that would encourage private sector investment in the semiconductor ecosystem,” said Raimondo.
However, she made no mention of labour standards and other markers that come along with the promise of more US investment and technology. Before her India visit, she had said in an interview, “I’m running the IPEF. And we’re saying sign up at the government-to-government level to labour standards, environmental standards, anti-corruption standards, rule of law standards. And in return, it’ll unlock US business, US capital jobs in India.”
The Indian side also sought more clarity on the trade pillar of the IPEF from which it has disassociated while signing on to its other pillars.