India and the US signed a memorandum of understanding (MoU) on the semiconductor supply chain and innovation partnership during the India-USA Commercial Dialogue, re-launched with a strategic outlook with a focus on supply chain resiliency and diversification and new emerging areas, after a gap of three years.
Union Commerce and Industry Minister Piyush Goyal and US Secretary of Commerce Gina M. Raimondo signed the agreement during the Dialogue in New Delhi today. The last India-USA Commercial Dialogue was held in February 2019. Since then, due to the pandemic and other factors it could not be held.
Earlier, India-US CEO Forum was soft-launched by the Indian Commerce and Industry Minister and US Secretary of Commerce on November 9, 2022, via videoconference for which identified key priorities were increasing supply chain resilience, enhancing energy security and reducing overall greenhouse gas emissions, advancing inclusive digital trade; and facilitating post-pandemic economic recovery, especially for small businesses.
The MoU seeks to establish a collaborative mechanism between the two governments on semiconductor supply chain resiliency and diversification in view of the US’s CHIPS and Science Act and India’s semiconductor Mission.
It aims to leverage complimentary strengths of both countries and facilitate commercial opportunities and the development of semiconductor innovation ecosystems through discussions on various aspects of the semiconductor value chain. The MoU envisages mutually beneficial research and development, talent and skill development.
On the invitation of Piyush Goyal, Union Minister of Commerce and Industry, US Secretary of Commerce Gina Raimondo is on a visit to New Delhi, according to a statement from the commerce ministry.
India is the ninth largest trading partner for the US, while the US is India’s largest trading partner and the largest export destination, according to a statement of the ministry of commerce and industry.
The bilateral trade in goods saw robust growth during the calendar year 2022 (CY2022), surpassing USD 131 billion in goods, thus doubling since 2014 (in 8 years) while total trade in goods and services is expected to cross USD 180 billion.
According to the ministry statement, US is also the third biggest source of foreign direct investment (FDI) for India, and the US is one of the top five investment destinations for India. It also said this visit of the US commerce secretary would immensely contribute towards furthering trade and commercial ties between the two countries. (ANI)