The year 2025 marks a new phase in India-US technological relations amid shifting global tech dynamics. The historic Satellite Instructional Television Experiment (SITE) of 1975 symbolised early collaboration between India’s space agency and NASA. Today, the partnership faces challenges from geopolitical tensions and diverging tech ecosystems. Meanwhile, the US has embraced a bold new techno-capitalist model under recent policies, reshaping global innovation and competition. India’s own tech sector stands at a crossroads, needing reforms to keep pace with this evolving landscape.
Historical Context of India-US Tech Collaboration
SITE was a landmark project using the US ATS-6 satellite to broadcast educational content to rural India. It reflected Cold War ideals of scientific internationalism. However, after India’s 1974 nuclear test, US enthusiasm waned due to non-proliferation concerns. It took decades to rebuild trust, culminating in the 2023 Initiative on Critical and Emerging Technologies (ICET), aiming to renew cooperation in advanced fields.
Divergent Tech Ecosystems – US, China, and India
The US tech sector evolved from government-led space missions to a dynamic private sector dominated by firms like SpaceX. This shift accelerated innovation and strategic advantage. China adopted a state-driven, mission-focused approach, investing heavily in research and education to become a global tech power. India remains between these models, with recent reforms but limited private sector mobilisation and scientific research capacity.
US Tech Policy Shift Under Trump Administration
Contrasting with prior regulatory caution, the Trump administration’s 2025 policies promote deregulation and aggressive investment in AI and cryptocurrencies. The GENIUS Act supports stablecoins backed by US assets, reinforcing the dollar’s global role. A Strategic Bitcoin Reserve was established, and crypto prosecutions halted. This techno-capitalism blends libertarianism with nationalism, prioritising competition with China and economic dominance.
Impact on India’s Tech Sector and Workforce
India’s IT industry faces disruption as AI automates traditional outsourcing services. Restrictions on H-1B visas add pressure on Indian tech professionals seeking global opportunities. Rising techno-nationalism in the West challenges India’s ambitions as a tech talent exporter. India must reform its innovation ecosystem, encourage private enterprise, and enhance scientific research to remain competitive.
Broader Implications for Global Technology and Geopolitics
The US approach signals a new state-private alliance pursuing technological supremacy for strategic ends rather than utopian ideals. This tech broligarchy influences global trade, finance, and security. The future of India-US cooperation depends on navigating political differences and adapting to these systemic shifts. The global tech race now centres on AI, space, and digital currencies, with India needing urgent strategic focus.
Questions for UPSC:
- Discuss in the light of India-US relations how technological cooperation can influence geopolitical stability and economic development.
- Critically examine the impact of state-driven versus market-driven models of technological advancement, with examples from China, the US, and India.
- Explain the challenges and opportunities posed by artificial intelligence and automation on developing country labour markets, citing India’s IT sector as a case study.
- With suitable examples, discuss the role of digital currencies in global finance and the geopolitical implications of their regulation or promotion by major powers.
