Editorial of the Day (10 July): US-India initiative on Critical and Emerging Technology (iCET)

Context: Recently, India and the U.S. held talks to progress the iCET initiative.

About initiative on Critical and Emerging Technology (iCET)

• The India-U.S. Initiative on Critical and Emerging Technologies (iCET) was launched in January 2023.
• It aims to develop an open, accessible, and secure technology ecosystem.
• Significance:
  • Supply Chain Integration: Crucial for enhancing India’s role as a trusted partner in global supply chains and technology value chains.
  • Focus on Disruptive Technologies: Addresses key disruptive domains essential to the next Industrial Revolution and future warfare.
  • Market Expansion: Opens new markets for India’s deep technology players.

Key Areas of iCET

• Semiconductor Supply Chain: India and the U.S. have established joint task forces focused on identifying and mitigating vulnerabilities in the semiconductor supply chain.
  • Example: Micron Technology, a U.S. company, announced a $1 billion investment to build a semiconductor assembly and testing plant in Gujarat, India.
• 5G/6G Technology: Both countries are working together on developing joint standards for 5G technology and conducting interoperability testing.
  • The goal is to enable the deployment and adoption of open RAN (Radio Access Network) in India.
• Cooperation on human spaceflight: Both countries are deepening cooperation on human space flight.
  • Example: Advanced training for Indian astronauts at NASA’s Johnson Space Center.
    • Incentivizing commercial players from both nations to collaborate, especially in activities related to NASA’s Commercial Lunar Payload Services (CLPS) project.
• Space Cooperation: India and the U.S. have collaborated on joint space missions,
  • Example: NASA-ISRO Synthetic Aperture Radar (NISAR) mission aims to provide critical data for understanding climate change, natural disasters, and Earth’s ecosystem.
• Biotechnology: Joint initiatives in biotechnology focus on healthcare innovations and biosecurity.
  • Example: Launch of “Bio-X” initiative to promote cooperation in biotechnology and enhance competitiveness of biotechnology industries.
• Defense Technology: India and the U.S. are co-developing defence equipment, such as drones and advanced fighter jet components.

Challenges in Implementing iCET

• Technology Transfer Issues: U.S. defence companies are hesitant to share critical knowledge because of the fear of losing their competitive edge and intellectual property.
  • Example: Current agreements allow only partial technology transfers, like 80% for GE F-414INS6 engines and just 10-15% for MQ-9 Reaper/Predator-B drones.
    • Essential technologies, such as the special techniques for making turbine discs, are not shared.
• Strict U.S. Export Control Laws: U.S. laws impose strict regulations on sharing military technologies, even in joint ventures, making technology transfer difficult.
• Commercial Motivations:S. defence companies prioritise their shareholders and often take a conservative approach to sharing technology.
  • The drive to maximise profits can make these companies less willing to share advanced technologies.
• Bureaucratic and Structural Challenges: Complex and slow bureaucratic processes can delay or block the implementation of collaborative projects.
  • Example: The failure of the 2012 Defence Technology and Trade Initiative (DTTI) due to similar issues suggests potential challenges for iCET.
• Limitations on Innovation (Jugaad): Acquisitions through the Foreign Military Sales (FMS) route are subject to the ‘Golden Sentry’ end-use monitoring program, restricting India’s ability to apply innovative solutions to U.S. platforms.
  • The inability to modify U.S. equipment to suit local conditions limits operational flexibility and effectiveness.
• Geopolitical Considerations: U.S. policy encourages India to reduce its dependence on Russian arms, complicating India’s defence procurement strategies and its long-standing military relationship with Russia.
  • Maintaining strategic autonomy while deepening defence ties with the U.S. is a challenge for India.
• Prolonged Negotiations: Excessive discussions and prolonged negotiations can hinder progress, as seen in Augustine’s Laws, where too much talk can lead to little action.

Way Forward

• Technology Transfer and Roadmaps: Initiate technology transfer with less sensitive technologies and progressively increase complexity.
  • Establish clear milestones and roadmaps to ensure mutual understanding of expectations and deliverables.
• Diplomatic Engagement: Maintain continuous high-level dialogues to address export control and IPR protection concerns.
  • Advocate for policy adjustments in U.S. export control laws to facilitate smoother technology transfers.
• Public-Private Partnerships: Promote joint ventures between Indian and U.S. defence companies to enhance collaboration.
  • Provide incentives like tax benefits and relaxed regulatory norms for U.S. companies investing in India.
  • Increase domestic R&D investments and enhance skill development programs.
• Utilising Frameworks and Programs: Leverage INDUS-X and IMPACT programs to foster deeper collaboration.
  • Utilise ADDD (Advanced Domains Defense Dialogue) to address emerging challenges and explore new cooperation areas.
• Geopolitical and Strategic Balancing: Diversify defence imports to reduce dependency on any single country while maintaining strategic autonomy.
  • Strengthen strategic alliances with other countries to create a balanced defence procurement strategy.

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