The four phases of the Delhi-DC relationship

In any relationship, there comes a time when it shifts from a lower gear to a higher one. The State visit of Prime Minister Narendra Modi to the United States (US) is one such moment for the technology relationship between the two countries and it can be traced through four distinct phases.

During the Cold War, there was a minimal exchange of technology, and I call it the Stranger Phase. Then came the Acquaintance Phase, which started in the early eighties and was marked by IT outsourcing. This was largely an industry-to-industry construct and the roles of the governments on both sides were limited. The presence of a large number of first-generation immigrant Indian engineers facilitated outsourcing IT services to India, against competition from Ireland, the Philippines, Ukraine and other European destinations. Outsourcing included setting up of call centres, transcription desks, back-office operations and software services body-shopping, where large numbers of IT professionals from India were sent to the US for on-site IT services. This phase was low on the tech-scale and leveraged India's ability to provide large-scale English-speaking human resource and wage arbitrage.

The Acquaintance Phase was followed by the Friendship Phase. This period was marked by greater trust and understanding, and the strengthening of bonds. The role of governments became important as the relationship grew from mere commercial to strategic. This phase saw great progress in defence cooperation, and a series of agreements were signed, each signifying greater trust and mutual understanding, and increasing alignment in the geo-political sphere. A first step in this direction was the signing of the General Security of Military Information Agreement in 2002. This was followed by the New Framework for the US-India Defence Relationship in 2005 which opened the doors for US defence technology for India. The US-India Civil Nuclear Agreement, also called the 123 Agreement, was signed in 2008, opening opportunities in nuclear technologies. In 2011, the Memorandum for Greater Cooperation in Cyber Security was signed. 2012 saw the signing of the Defence Trade and Technology Initiative (DTTI) and in 2016, India was recognised as a Major Defence Partner (MDP). In 2018, the US renamed its Pacific Command as the Indo-Pacific Command, respecting Indian concerns. The same year, the Communications Compatibility and Security Agreement (COMCASA) was signed, enabling secure and interoperable data sharing between two countries.

A prominent part of this relationship was foreign military sales of high-tech military equipment. Nearly $20 billion worth of military sales were made by the US to India, including the M777 1555 mm Light-Weight Towed Howitzers, Apache Attack Helicopter, Chinook Heavy Lift Helicopter and C-130 J Hercules aircraft. While strides were made by the two governments on the defence and nuclear fronts during this phase, the industry relationship was also on the ascendancy. US companies took the lead in establishing captive research and development (R&D) centres.

This visit is the beginning of the highest level in the technology relationship, which I call the Symbiotic Phase. This phase is markedly different from earlier periods. It symbolises mutual support, interdependence and sharing of knowledge resources. Instead of merely being a recipient of technology, India and the US are elevating their relationship to being tech partners, contributing to mutual and global benefit. This phase comes at a time when there is increasing distrust between the US and China, and a wave of innovation is sweeping India. Early examples of this were iDEX in Defence and Covid-time innovations.

I recall when the US Air Force Research Lab approached the ministry of defence, expressing interest to collaborate with an Indian iDEX startup in 2019. For Indian defence, which was only used to seeking technology from foreign firms, this was unbelievable. The development of vaccines, drugs and ventilators during the pandemic, and India's Digital Public Infrastructure, including Aadhaar, UPI, eSign, DigiLocker and startup ecosystem, helped in changing India's image from a service economy to a knowledge economy.

The announcement of the US-India Initiative on Critical and Emerging Technologies (iCET) in May 2022 signalled the incipient stage of the Symbiotic Phase. Underlying this phase are common beliefs and shared values of democracy, and a free and open technology ecosystem for the betterment of humankind.

iCET will foster collaborations between the technology ecosystems in the two countries in the fields of science, defence, semiconductor, space and telecommunication. The two sides have decided to work in sensitive technology domains such as undersea sectors, surveillance, and reconnaissance. For the first time, both sides have agreed to ink a Reciprocal Defence Procurement agreement which should result in higher defence exports from India to the US. Work is being initiated on the long-term security of supply chains, marking a totally new level of confidence in the relationship.

This new elevation in the relationship has not been easy. There have been the usual naysayers, and both governments need to be commended for having blocked out the negativity.

The Acquaintance Phase led to India becoming the world's largest IT outsourcing destination; the Friendship Phase resulted in India becoming the world's largest destination for captive R&D. Peering into the future, one can see that the visit of PM Modi, which marks the beginning of the Symbiotic Phase, has the potential to make the two countries the global innovation powerhouses of the world. The visit is a historic moment, a turning point, not just for the India-US technology relationship but also for the global advancement of technology.

Ajay Kumar is former defence secretary and distinguished visiting professor, IIT Kanpur. The views expressed are personal

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