India, US to boost trade in GPUs, advanced tech under interim pact framework

India and the United States have unveiled a strategic plan to enhance trade in cutting-edge technology products, notably graphics processing units (GPUs) crucial for data centers. This initiative falls under a newly established interim trade agreement framework, announced on February 7 following discussions between US President Donald J. Trump and Indian Prime Minister Narendra Modi. The framework highlights high-performance computing hardware as a fundamental element of a broader collaboration between the two nations, focusing on supply-chain resilience, digital trade, and strategic technology partnerships. A joint statement issued by both governments emphasized a significant increase in trade related to technology products, including GPUs and other essential items for data centers. The focus on GPUs is particularly significant, as these components are vital for artificial intelligence (AI) development, cloud computing, and large-scale data management. This initiative comes at a time when both countries are aiming to reduce reliance on external supply chains and enhance cooperation regarding export controls. Additionally, the agreement aims to bolster economic security by improving supply chain resilience and fostering innovation. It includes commitments to address challenges in digital trade and create a pathway towards establishing comprehensive and mutually advantageous digital trade regulations in future bilateral agreements. As part of this framework, India has outlined plans to invest approximately $500 billion in US energy products, aircraft and their components, precious metals, technology goods, and coking coal over the next five years. The statement concluded with a commitment from both nations to swiftly implement this framework and work towards finalizing the Interim Agreement, aiming for a beneficial Bilateral Trade Agreement (BTA).