INDIA- US TRUST INITIATIVE

U.S.-India TRUST (Transforming the Relationship Utilizing Strategic Technology) Initiative

The TRUST initiative aims to catalyse collaboration between government, academia, and the private sector in promoting the application of critical and emerging technologies in key sectors. These include:

• Artificial Intelligence (AI)
• Semiconductors
• Quantum Technology
• Biotechnology
• Energy
• Space
• Defence

Key Features of the TRUST Initiative

1. Cooperation in Critical Minerals Sector

   • Establish robust supply chains for semiconductors, critical minerals, and advanced materials.
   • Launch the Strategic Mineral Recovery Initiative, focusing on recovering critical minerals (e.g., lithium, cobalt, rare earth elements) from heavy industries (e.g., aluminum, coal mining, oil, and gas).
   • Accelerate R&D and promote investments throughout the critical mineral value chain.
   • Leverage the Mineral Security Partnership (MSP), which follows India’s induction into the U.S.-led Minerals Security Finance Network in 2024 and the MSP in 2023.

2. Cooperation in Pharmaceutical Sector

   • Promote public and private investments to expand Indian manufacturing capacity, especially for active pharmaceutical ingredients (API) for critical medicines.
   • Develop robust supply chains for pharma products focusing on critical minerals like lithium, magnesium, zinc, and selenium.
   • India, as the world’s second-largest API manufacturer, accounts for a significant portion of pharma exports.
   • Pharma products made up 21.9% of India’s $20 billion worth of final consumer goods exported to the U.S. in 2023.

3. Cooperation in Artificial Intelligence

   • U.S.-India collaboration on industry partnerships for next-generation data centers.
   • Cooperation on AI processor development and access.
   • Focus on AI innovations for solving societal challenges.
   • A roadmap to accelerate AI infrastructure is expected by the end of 2025.

Significance of the TRUST Initiative

1. Enhancing Bilateral Trade

   • Reduces barriers to technology transfer, addresses export controls, and promotes high-tech commerce, especially in the critical minerals sector.

2. Boosting Innovation

   • Facilitates collaboration between governments, academia, and the private sector to drive innovation in defense, AI, semiconductors, quantum computing, biotechnology, energy, and space.

3. Diversifying Supply Chains

   • Investments in the pharmaceutical sector, especially APIs, will create jobs, diversify supply chains, and reduce the risk of drug shortages.

4. Countering China

   • Strengthens India and the U.S. as key players in countering China’s dominance in critical minerals supply chains.

5. Broadening Collaboration Scope

   • While not granting tax benefits under the U.S. Inflation Reduction Act (IRA), the initiative significantly broadens the scope of collaboration between India and the U.S.

India-U.S. Collaboration in Critical and Emerging Technology Sectors

1. Initiative on Critical and Emerging Technology (iCET)

   • Launched in 2022 to deepen technology cooperation, with a focus on semiconductors, wireless communication, quantum computing, and artificial intelligence, especially for defense and security applications.

2. Minerals Security Partnership (MSP)

   • A collaboration of 14 countries, including India, to catalyse public and private investments in critical mineral supply chains, ensuring security and sustainability.

3. CHIPS Act Collaboration

   • The International Technology Security and Innovation (ITSI) Fund, created under the U.S. CHIPS Act (2022), supports India’s semiconductor ecosystem through infrastructure funding and R&D support.

4. INDUS-X Initiative

   • Collaboration between India’s iDEX (Innovations for Defence Excellence) and the U.S. Defense Innovation Unit (DIU) to promote innovation in defense technologies, particularly semiconductors and related applications.

Importance of Critical Minerals in Strategic Sectors

Critical minerals and rare earth elements (REEs) are essential for various strategic industries, such as defense, semiconductors, quantum computing, energy, and space, including:

• Neodymium, Praseodymium, Samarium: High-performance magnets for missiles, fighter jets, and radars.
• Lithium, Cobalt, Nickel: Advanced batteries for energy storage and electric vehicles.
• Gallium, Indium: Essential for semiconductors and AI hardware.
• Ultra-pure Silicon: Used in quantum computing.
• Scandium: Used in space technology.
• REEs (e.g., Europium, Terbium): Important for biotech imaging and medical diagnostics.

Present Status in Critical Minerals

• China’s Dominance: China controls nearly 70% of global REE production and much of the processing infrastructure.
• India’s Dependency: India is a net importer of critical minerals due to limited reserves or production.
• Net Import Bill: India’s import bill for critical minerals (excluding lithium) for FY24 was approximately ₹30,000 crore, with phosphorous imports being the highest at ₹12,648 crore.
• National Critical Minerals Mission: India approved a ₹16,300 crore mission in January 2025, allocating ₹7,000 crore for exploration and ₹1,500 crore for recycling incentives.

This initiative is a step forward in strengthening technological and economic cooperation between India and the U.S., paving the way for a secure, diversified, and innovation-driven future.